SFEC — SkillsFuture Enterprise Credit for AI Training (2026)

Your company may have up to $10,000 in training credit sitting unused. The SkillsFuture Enterprise Credit (SFEC) gives eligible Singapore businesses a direct offset for workforce training — including corporate AI courses. Combined with SSG subsidies, Absentee Payroll, and the Enterprise Innovation Scheme, many companies send their teams for AI training at zero out-of-pocket cost. This guide covers who qualifies, how much you save, and the step-by-step process to claim before the SFEC is redesigned into a digital wallet system later in 2026.

What Is the SkillsFuture Enterprise Credit (SFEC)?

SFEC is a government training credit for Singapore employers. Unlike SkillsFuture Credit — which is for individual citizens — SFEC is designed for businesses that want to invest in workforce development without shouldering the full cost.

Each qualifying company receives $10,000. That credit offsets up to 90% of your out-of-pocket training costs after other government subsidies (such as SSG baseline funding) have already been applied. You do not receive cash. The credit is applied as a direct offset against eligible training expenses through the SkillsFuture Business Exchange (SFBX) portal.

The key concept: SFEC sits on top of existing subsidies. If SSG already covers 70% of a course fee through baseline funding, SFEC can offset up to 90% of the remaining 30% that you would normally pay out of pocket. For many companies, this brings the actual training cost close to zero — or eliminates it entirely.

SFEC was introduced to encourage businesses — particularly small and medium enterprises — to invest in workforce development. It is administered by SkillsFuture Singapore (SSG) and is especially relevant for companies looking to upskill their teams in AI, automation, and digital tools.

Who Qualifies for SFEC in 2026?

SFEC eligibility is auto-assessed by SSG during qualifying windows. You do not apply for it — SSG checks whether your company meets the criteria and automatically credits the $10,000 to your employer account. Here are the requirements.

Most SMEs with at least three local staff on payroll will meet these criteria. The Skills Development Levy is a mandatory contribution paid by employers for all employees earning more than $800 per month, so if you have been running payroll, you are likely already contributing.

How Much Can You Claim?

The SkillsFuture Enterprise Credit gives your company $10,000. That amount offsets up to 90% of your out-of-pocket costs — meaning the costs your company bears after all other government subsidies have been applied.

The 90% offset applies to out-of-pocket costs only — not the full course fee. This is a common point of confusion. SFEC kicks in after SSG subsidies have already reduced the price. For SMEs receiving the Enhanced Training Support for SMEs (ETSS) rate of 70%, SFEC covers 90% of the remaining 30%. For non-SMEs at the 50% baseline rate, SFEC covers 90% of the remaining 50%.

How to Claim SFEC — Step by Step

The current SFEC claim process involves five steps. Under the existing model, you pay the net course fee first and claim the SFEC offset afterwards through the SFBX portal.

1. Check your SFEC eligibility and balance Log in to the SkillsFuture Business Exchange (SFBX) using your Corppass credentials. Your SFEC balance and eligibility status will appear on the employer dashboard. If you do not see a balance, your company may not have qualified during the latest assessment window. Contact SSG at 6785 5785 to check.
2. Choose an SSG-supported AI training programme Browse the list of SFEC-eligible programmes on the SFBX portal. For AI training, search for courses in generative AI, AI workflow automation, prompt engineering, or data analytics. Only programmes listed under SSG-supported categories qualify for SFEC offset.
3. Enrol your employees with the training provider Register your employees directly with the training provider. Confirm enrolment details including the full course fee, the subsidised fee after SSG baseline funding, the schedule, and the number of participants. Keep all enrolment confirmation documents — you will need them for the claim.
4. Pay the net fee and collect receipts Under the current SFEC model, you pay the out-of-pocket course fee upfront. This is the amount after SSG subsidies have been deducted. Keep all invoices, payment receipts, and attendance records. These documents are required when you submit your SFEC claim for reimbursement.
5. Submit your SFEC claim on the SFBX portal After the course is completed and attendance is confirmed, log back in to the SFBX portal and submit your SFEC claim. Upload your payment receipts, invoices, and enrolment records. SFEC offsets up to 90% of your out-of-pocket costs. Claims are typically processed within four to six weeks, and the offset is credited back to your company.

Eligible AI Training at Vertical Institute

The following corporate AI training programmes delivered by Vertical Institute are SSG-supported and eligible for SFEC offset. Both programmes are WSQ-certified and can be delivered on-site, at Lifelong Learning Institute, or online.

For individual employees looking to self-fund or use personal SkillsFuture Credit, see our courses directory.

Stacking SFEC with Other Schemes

SFEC is designed to work alongside other funding sources, not replace them. Stacking multiple schemes is the most effective way to bring your training costs close to zero. Here is how the main subsidies layer together for a single training event.

The key principle: SSG subsidies reduce the course fee first. SFEC reduces your remaining employer cost. Absentee Payroll reimburses wages separately. The Enterprise Innovation Scheme provides additional tax relief or a cash payout. Each funding source has its own pool and its own claim process — they do not eat into each other.

Worked Example: $0 Out-of-Pocket for 5 Staff

Here is a realistic worked example for an SME sending five employees to the Generative AI Training programme at Vertical Institute.

This is not a hypothetical edge case. It reflects the standard subsidy stack available to most Singapore SMEs with SFEC and ETSS eligibility. The numbers change slightly for non-SMEs (who receive 50% SSG subsidy instead of 70%), but even then, the total cost is a fraction of the full fee.

Common Mistakes When Claiming SFEC

These are the errors we see most often from employers. Avoiding them will save your company money and admin time.

• Not checking the SFBX portal for your balance. Many companies do not realise they have been auto-credited with SFEC. If you have never logged in to the SkillsFuture Business Exchange with Corppass, you may have $10,000 sitting there unused. Check today.
• Missing claim deadlines. SFEC claims must be submitted within the stipulated timeframe after training is completed. Delaying your paperwork can mean losing the offset entirely. Submit your claim as soon as attendance is confirmed.
• Not stacking with other schemes. Claiming SFEC alone is leaving money on the table. Always check whether your company qualifies for Absentee Payroll (salary reimbursement during training hours) and the Enterprise Innovation Scheme (tax deduction or cash payout). These are separate funding pools that do not reduce your SFEC balance.
• Confusing SFEC with SkillsFuture Credit. SFEC is for employers. SkillsFuture Credit is for individuals. They are separate schemes with separate portals. If you are an HR manager, your company's SFEC is on the SFBX portal (Corppass login). Your personal SkillsFuture Credit is on MySkillsFuture (Singpass login).
• Assuming all training is SFEC-eligible. Only SSG-supported courses and workforce transformation programmes qualify. Private courses, overseas training, and non-accredited workshops are generally not covered. Always verify eligibility on the SFBX portal before enrolling your team.
• Submitting claims without proper documentation. You need invoices, payment receipts, and proof of attendance. Missing documents will delay or reject your claim. Collect everything before you submit, and train your admin team on what paperwork is required.

What Changed in 2026

SFEC is going through its most significant change since it was introduced. Here is what it means for your company.

Digital Wallet Redesign

The government has announced that SFEC is being redesigned into a digital wallet system. The biggest operational change: instead of paying course fees upfront and claiming reimbursement weeks later, the SFEC amount will be deducted automatically at the point of enrolment. You will see the offset applied before you make any payment.

This removes the cash flow burden that many SMEs have raised as a barrier to training investment. Under the old pay-first-claim-later model, companies had to front the cash and wait four to six weeks for reimbursement — a real obstacle for smaller firms with tight budgets.

Enterprise Workforce Transformation Package

The SFEC redesign is part of the broader Enterprise Workforce Transformation Package, a $400M+ investment to help businesses restructure, upskill, and adopt new technology including AI. The package covers training credits, job redesign support, career conversion programmes, and sector-specific transformation roadmaps.

What You Should Do Now

If your company has existing SFEC balance under the current scheme, use it now. There is no guarantee that unused credit from the current SFEC will carry over to the redesigned digital wallet. Plan your AI training, enrol your team, and submit your claims before the transition.

Frequently Asked Questions