Singapore Budget: lifelong learning emphasised

Staying ahead of technology that will transform workplaces and jobs is a focus for Singapore this year. Singapore PM and Minister for Finance, Lawrence Wong, said his FY2025 Budget speech: "AI will get better in the future, and other new disruptive technologies will emerge. It is hard to predict how they will impact specific industries and jobs. But one thing is clear: our workers must be equipped with the skills to stay competitive and relevant. 

"That’s why we are investing heavily in lifelong learning, and have made significant moves to strengthen SkillsFuture as a key pillar of our social compact." 

SkillsFuture-related announcements included:

- The SkillsFuture Level-Up Programme will support those undergoing part-time training from 2026

- A new SkillsFuture Workforce Development Grant that replaces existing schemes administered by Workforce Singapore and SkillsFuture Singapore and provides more support for job redesign activities. 

- All companies with at least three resident employees to receive S$10,000 in a redesigned SkillsFuture Enterprise credit in 2H26.

An additional S$200 million to fund for the National Trades Union Congress's (NTUC’s) Company Training Committees (CTCs) grant for business transformation and more help to nurture and groom Singaporean leaders in the corporate sector were also introduced.

"More and more Singaporeans are taking on leadership roles in large firms and MNEs operating here. We want to grow this leadership pipeline. We will provide more support to equip Singaporeans and enable them to succeed on their own merit," PM Wong said.

The government will also set aside resources to increase the capacity of schemes that offer Singaporeans overseas experience, and provide more opportunities for promising Singaporean leaders, PM Wong added.

Source: Workday. Tiviti.

Yogesh Sangle, Global Head, Instarem, saw the workforce transformation in a positive light. "Expanding the SkillsFuture Level-Up Programme to part-time learners is (a) welcome move. As AI and digital tools reshape industries, small and medium businesses face the challenge of upskilling their workforce while managing day-to-day operations – so these training opportunities are crucial to long-term success," he said.

"Closing the digital skills gap, through initiatives such as the refreshed SkillsFuture scheme, will be equally important for SMEs to make the most of technology. The most successful businesses will be those that strengthen the digital capabilities of their workforce, enhancing future readiness and driving sustainable growth in the digital economy,” added Koren Wines, MD, Xero Asia. SME stands for small and medium-sized enterprise.

Fabio Tiviti, Group VP, APAC & Japan Field Operations, Workday, also saw benefits to the announcement. "To support workplace transformation, the government’s ongoing commitment to upskilling measures with the SkillsFuture enhancements will empower individuals to upgrade their skills while staying employed," he said.

"This approach will help build a future-ready workforce equipped with relevant expertise, strengthening the overall competitiveness of the job market,” observed

Source: FPT Software. Nguyen.

David Nguyen, FPT Software SVP and FPT Asia Pacific CEO, FPT Corporation noted that the SG60 Budget "highlights the nation’s resilience and long-term vision, reinforcing its position as a global hub for technological innovation".

"The SkillsFuture programmes and the new Enterprise Compute Initiative demonstrate the Singapore government’s continued commitment to secure a future-ready workforce for greater intelligence transformation and expansion of Singapore’s prominence as a leader in AI," he said.

"Strengthening AI capabilities will place Singaporeans at the forefront of an AI-first world while enhancing Asia Pacific’s competitiveness in the global AI landscape. However, the region’s ongoing IT talent shortage remains a pressing challenge. 

"IDC projects that by 2027, 60% of organisations in Asia Pacific will experience digital skills gaps, delaying projects and slowing AI adoption. Without decisive action, AI ambitions risk being constrained by a lack of skilled professionals."

Nguyen suggested looking outside Singapore for a solution. "One clear path forward is looking beyond borders to tap into emerging IT talent hubs. Vietnam, for instance, is fast emerging as a leading IT talent hub, now producing over 80,000 IT graduates annually. This presents a strategic advantage to scale AI capabilities and accelerate innovation."

Source: Freshworks. Ma.

FPT has a partnership with the National University of Singapore's School of Computing to establish an AI Lab. "By driving research in machine learning, data analytics, natural language processing, and computer vision, this initiative strengthens R&D and commercialisation while cultivating the next generation of AI talent in Singapore and across APAC," Nguyen said.

"As Singapore continues to position itself as a global leader in AI, the upcoming budget’s focus on workforce transformation is key to ensuring businesses remain competitive," said Simon Ma, MD, Asia, Freshworks.

"A recent study by Freshworks finds that while AI is driving productivity improvements worldwide, its success hinges on how effectively employees are equipped to use these tools. Initiatives like TechSkills Accelerator are crucial in closing the skills gap, but businesses must also focus on making AI adoption accessible and user-friendly."

Source: SAP. Siow.

"A cost-effective approach to upskilling, fostering a culture of continuous learning, and prioritising automation will help organisations achieve maximum impact. With these steps, Singapore can build an AI-ready workforce that not only boosts productivity but also strengthens its position in the digital economy for the future," Ma added.

Verena Siow, President and MD, SAP Southeast Asia, commented that the Budget reinforces the importance of workforce transformation and continuous learning.

"To reap the full benefits of AI, businesses must equip employees with the skills and mindset to work confidently with AI, cloud platforms, and data analytics. Free courses by technology firms like SAP complement this mission and provide an opportunity for Singapore companies to kickstart their learning journey with ease," she said.

Jessica Zhang, Senior VP, APAC at ADP, said that Singapore’s economic competitiveness depends on how well all segments of its workforce adapt to rapid technological change. 

Source: ADP. Zhang.

"With the right skills, the country’s workers can navigate uncertainty together and advance their careers with more confidence. However, only 23% of Singapore workers feel equipped to progress in their careers, according to ADP’s People at Work 2025 report," she shared.

"As workforce development takes centre stage in Budget 2025, businesses that invest in skills training will build a stronger, more resilient workforce. Employers should embrace the enhanced upskilling initiatives that have been made more accessible to them, and take the lead by offering inclusive and scalable learning opportunities. 

"Investing in AI, digital skills, and innovation-driven training will not only help employees future-proof their careers but also boost business productivity.”

Suvig Sharma, Area VP (ASEAN), Confluent, said that with Singapore’s plans to triple its AI talent pool, it is critical to help businesses adopt best practices to maximise innovation, support workers to harness greater value and streamline workflows, while ensuring responsible use. 

Source: Confluent. Sharma.

"To fully leverage these emerging technologies, companies need a skilled workforce. The new SkillsFuture Workforce Development Grant will be of tremendous help, helping businesses train their employees while adapting their workforce structures to new demands. As roles like data streaming engineers become more essential, companies will need support to prepare their workforce to respond to these evolving fields," he said.

“Singapore has long set the standard for skilling excellence, and Budget 2025 reinforces this with a strong focus on workforce development via strategic investments in skills and training. The new SkillsFuture Workforce Development Grant and redesigned SkillsFuture Enterprise Credit will streamline funding access and encourage businesses to invest in employee upskilling," said Eklavya Bhave, Head of Asia Pacific, Coursera.

Bhave added: "While younger adults in Singapore outperform the OECD average in skills, older generations, particularly those aged 55-65, face challenges in keeping pace. SkillsFuture programmes and support schemes, supplemented by flexible learning solutions from providers like Coursera, are essential to bridging the gap, supporting job redesign activities while future-proofing talent across all age groups."

Source: Coursera. Bhave.

He shared that nearly 20% of Singapore’s population is already learning on Coursera, with many using SkillsFuture credits to gain practical skills in data science, business, and digital literacy. "With a 240% surge in gen AI enrollments in 2024 – one enrollment every 14 minutes – Singapore leads Southeast Asia in gen AI learning and ranks among the top 15 globally on Coursera," Bhave said.

"This is especially pertinent with Singapore’s plans to triple its AI talent pool over the next few years, strengthening the nation’s pivotal position as an AI innovation hub. At Coursera, we’re excited to continue championing an equitable future of work, helping more Singaporeans gain essential skills while strengthening the country’s leadership in innovation.” 

Brian Kealey, Country Leader, Salesforce Singapore, said that the new SkillsFuture Workforce Development Grant, which helps companies restructure, transform, and upgrade their workforce, is a "step toward ensuring the competitiveness of Singaporean workers".

"In his speech, PM Wong reiterated the need to equip the workforce with updated skills to stay relevant, especially amid the continued rise of disruptive technologies such as AI. AI continues to transform industries and redefine how work gets done. As we enter the third wave of the AI revolution, AI agents that autonomously handle tasks present unique opportunities for employees to grow their careers by focusing on strategic, high-value tasks. To do so, they must adapt to new ways of working alongside these AI agents to reach their full potential," he commented.

"The real challenge for employees isn’t just learning about AI but knowing how to apply it in their day-to-day roles to drive productivity and efficiency. Upskilling must equip employees with the skills to work effectively alongside AI agents, ensuring they know how to use AI ethically, safely, and responsibly to drive positive business outcomes," Kealey emphasised.

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