25/02/2015

SkillsFuture Credit

1. To empower Singapore Citizens (SCs) in their learning and skills development, the Government will create a SkillsFuture Credit for all SCs aged 25 and above. SCs can use the SkillsFuture Credit to deepen their skills in existing fields and to broaden their horizon in areas outside their current fields. Every SC aged 25 and above will receive an initial credit of $500. The Government will make further top-ups to their SkillsFuture Credit at regular intervals. These credits will not expire, but can only be used for education and training initiated by individuals, to offset course fees. Subsequent cohorts of SCs will similarly receive an initial credit of $500 in the year that they turn 25.

2. SCs will be able to use their SkillsFuture Credit to pay for the following workskills related courses, on top of existing subsidies:

• Courses subsidised by the Singapore Workforce Development Agency (WDA).
• Courses offered by the Ministry of Education (MOE)-funded PostSecondary Education Institutions (i.e. Institute of Technical Education, polytechnics, and autonomous universities). SCs will also be able to use the credits for selected courses at SIM University, LASALLE College of the Arts, and Nanyang Academy of Fine Arts.
• Courses supported by other public agencies. (More details will be released subsequently.)

3. More than two million SCs will receive the SkillsFuture Credit in 2016. The Government will notify eligible SCs of their SkillsFuture Credit in due course.

Adjustments to the Post-Secondary Education Account (PSEA)

4. The SkillsFuture Credit provides SCs with additional support to invest in their education and training as they embark on their working life, and can be used throughout life. Today, eligible SCs can also use funds in their Post-Secondary Education Account (PSEA) for fees and charges at approved institutions. This account is closed when an individual turns 30. With the introduction of the SkillsFuture Credit for SCs aged 25 and above, MOE will bring forward the closure of the PSEA from the current age of 30 to the age of 25. Upon closure of the PSEA account, monies in the individual’s PSEA will be transferred to their CPF Ordinary Account, as it is today. Individuals can opt to extend their PSEA to age 30 if they would like to continue using their PSEA monies to further their studies at approved publicly-funded institutions.

5. Please refer to the link for more information on the PSEA today: https://www.moe.gov.sg/financial-matters/psea

6. More details of the SkillsFuture Credit will be released in due course.