New skills and workforce agency a ‘two-horse chariot’, not ‘two-headed monster’: Minister

SINGAPORE – Singapore’s new workforce agency is “not a two-headed monster” but a “two-horse chariot” pulling in the same direction and charging ahead, Manpower Minister Tan See Leng said as a Bill to establish the Skills and Workforce Development Agency (SWDA) was passed in Parliament on May 5.

His remarks came after Workers’ Party MP He Ting Ru (Sengkang GRC) voiced concerns over the risk of fragmented leadership and conflicting priorities in the new agency, given that it will come under both the Ministry of Manpower (MOM) and Ministry of Education (MOE).

Dr Tan said MOM will serve as the parent ministry of SWDA, with joint oversight from MOE. This arrangement will bring institutes of higher learning into closer alignment with the workforce agenda, ensuring that skills development is pursued in a “coherent way”.

Some 20 MPs spoke in support of the Bill over a session lasting around five hours.

They broadly backed the move to integrate SkillsFuture Singapore (SSG) and Workforce Singapore (WSG) – first announced in Budget 2026 – into one agency, although questions were raised over costs and accountability.

WP MP Gerald Giam (Aljunied GRC) asked whether the merger marks a reversal of the 2016 decision to split the former Workforce Development Agency.

“What assurances will the minister give that we will not repeat the past and split the agency up again in the not-too-distant future, incurring more costs?”

Dr Tan rejected Mr Giam’s characterisation, saying both the 2016 split and the current merger were appropriate responses in different circumstances.

The 2016 move allowed SSG and WSG to develop capabilities in training and employment facilitation respectively, and both agencies have since achieved their intended goals, Dr Tan said.

But with rapid advances in artificial intelligence and geopolitical disruptions reshaping the global economy, “our operating reality has changed significantly and so must we”, he said.

“The next bound of our workforce strategy requires an end-to-end system that connects skills to jobs more quickly and more accurately than before.”

SWDA is therefore needed to deliver more pre-emptive and diverse services to meet the more complex needs of workers and employers, he said.

On costs, Dr Tan said the merger will not require additional funding, with expenses such as branding and systems integration to be covered by the existing budgets of SSG and WSG.

Other MPs raised concerns over the uneven quality of courses and whether they translate into actual job placements.

Mr Darryl David (Ang Mo Kio GRC) pointed out that some SkillsFuture course providers have secured accreditation without clear evidence of labour market demand. Some also market these courses aggressively, sometimes targeting vulnerable groups such as the elderly.

When the system is crowded with courses of uneven quality, it makes it harder for individuals to identify training that genuinely improves their employability.

Mr Yip Hon Weng (Yio Chu Kang) also shared similar concerns over the quality of some courses.

“A course that is completed but does not improve employability is not a success. It is a displacement deferred,” he said.

Mr Yip asked whether course providers will be assessed based on placement rates, wage outcomes and retention, and if those performing poorly will be removed.

Ms Gho Sze Kee (Mountbatten) also asked about the curation of SkillsFuture courses – whether the catalogue should include interest-based courses that do not lead to employment.

Dr Tan acknowledged her point, but stressed that SkillsFuture is more than just training for the industry. It is also about promoting a culture of lifelong learning.

“We encourage all Singaporeans to learn not just for their current job, or the next job, but also in their areas of interest,” he said.

However, when it comes to funding, a clear line is drawn between industry-oriented and interest-based courses. While the base tier of SkillsFuture credit is applicable to a wide range of courses, government funding for course fees is applicable only for courses that support the workforce’s upskilling needs.

“The additional SkillsFuture credit for mid-careerists is further scoped to courses that meet more stringent criteria on employability outcomes and industry relevance,” Dr Tan said.

Several MPs, including Nominated MP Sanjeev Tiwari, Mr Patrick Tay (Pioneer) and Mr Giam, also said that it was important for outcomes to be published and tracked, to ensure that reskilling leads to improvements in jobs, wages and career progression.

Dr Hamid Razak (West Coast-Jurong West GRC) said: “Every Singaporean who invests his time and effort into upgrading should see a meaningful return in real employment opportunities.”

Dr Tan said the new agency will track outcomes, including time taken for workers to secure jobs and their wage growth, beyond just training and placement numbers.

SWDA is expected to be set up in the third quarter of 2026. It will be headed by WSG’s current chief executive Dilys Boey.