Statute Details
- Title: Skills Development Levy (Prescribed Purposes) Regulations
- Act Code: SDLA1979-RG1
- Legislative Type: Subsidiary legislation (Regulations)
- Authorising Act: Skills Development Levy Act (Cap. 306), in particular sections 8(2)(d) and 23
- Current Version: Current version as at 27 Mar 2026
- Key Provisions: Section 1 (Citation); Section 2 (Prescribed purposes)
- Most Recent Amendment (from extract): Amended by S 463/2020 with effect from 15/06/2020
- Revised Edition Noted in Extract: Revised Edition 1995 (1 Apr 1995), with original date shown as 23 Jul 1993
What Is This Legislation About?
The Skills Development Levy (Prescribed Purposes) Regulations are subsidiary legislation made under the Skills Development Levy Act. Their central function is to specify the “prescribed purposes” for which money held in the Skills Development Fund may be paid out and expended. In plain language, the Regulations act as a spending framework: they tell the administrator of the Fund what kinds of grants and subsidies the Fund is permitted to support.
The Skills Development Fund is funded through the Skills Development Levy regime. Once money enters the Fund, it is not automatically available for any training or employment-related initiative. Instead, the Regulations constrain expenditure to particular categories of support, including grants to companies and certain organisations, and grants to key industry and community bodies that promote skills development.
Practically, the Regulations are important because they affect eligibility and permissible use of Fund monies. For employers, training providers, and beneficiary organisations, the Regulations help determine whether a proposed grant or subsidy falls within the legal boundaries of the Fund. For lawyers advising on compliance, governance, and grant applications, the Regulations provide the legal “map” of what the Fund can lawfully finance.
What Are the Key Provisions?
Section 1 (Citation) is straightforward. It provides the short title by which the Regulations may be cited: the Skills Development Levy (Prescribed Purposes) Regulations. While not substantive, citation provisions are often relevant for legal referencing in correspondence, submissions, and board resolutions.
Section 2 (Prescribed purposes) is the operative provision. Section 2(1) states that moneys of the Skills Development Fund may from time to time be paid out and expended for the purpose of certain specified grants. The structure is a set of enumerated categories (paragraphs (a) to (c)), each describing the type of recipient and the general objective of the expenditure.
Section 2(1)(a): Grants to companies and certain firms/organisations for consultant assistance and training/business upgrading. This paragraph authorises grants to (i) any company, (ii) any variable capital company, or (iii) any firm wholly or substantially owned by citizens or permanent residents of Singapore, and to any organisation, for engaging any consultant to assist in upgrading the business operation or training programme. The key legal elements are: (1) the recipient category (including the ownership condition for firms), (2) the activity (engaging a consultant to upgrade business operations or training programmes), and (3) the objective (promoting or developing the skills or expertise of persons in employment). The amendment effective 15/06/2020 (S 463/2020) is reflected in the current wording, indicating that the scope and/or drafting of this paragraph has been refined over time.
Section 2(1)(b): Grants to the National Trades Union Congress (NTUC) for member skills development and retraining. This paragraph authorises grants to NTUC to defray or subsidise costs it incurs in promoting or developing the skills and expertise of its members who are persons in employment, or in retraining its retrenched members. The legal significance is that the Fund’s support is not limited to employers; it also extends to a central labour organisation, with a clear linkage to both upskilling (for employed members) and retraining (for retrenched members). The “defray or subsidise” language is important: it indicates that the Fund may cover costs incurred by NTUC in performing these functions, rather than merely funding activities directly.
Section 2(1)(c): Grants to specified community and professional organisations for skills development and retraining. Paragraph (c) authorises grants to a defined list of organisations to defray or subsidise costs they incur in promoting or developing skills and expertise of persons in employment or in retraining retrenched persons. The organisations are expressly named, including: (i) the Chinese Development Assistance Council (a company limited by guarantee under the Companies Act), (ii) Yayasan Mendaki (a company limited by guarantee under the Companies Act), (iii) the Singapore Indian Development Association (a society under the Societies Act), (iv) the Eurasian Association, Singapore (a society under the Societies Act), and (v) the Association of Muslim Professionals (an institution registered as a charity under the Charities Act).
This list is legally closed: only the organisations enumerated in the regulation are within the paragraph (c) category. For counsel advising an organisation seeking Fund support, this means that legal status alone is not sufficient; the organisation must be one of the specified bodies. The regulation’s drafting also demonstrates a deliberate legislative choice to include organisations with different legal forms (companies limited by guarantee, societies, and charities), but only where they are named.
Section 2(2): Limitation on “persons in employment” for paragraph (1)(c). The most nuanced restriction in the extract is Section 2(2). It provides that, for the purposes of paragraph (1)(c), “persons in employment” shall not include persons who volunteer their services to further the objects of any organisation referred to in that regulation. In other words, when the Fund is supporting the specified organisations under paragraph (c), the definition of “persons in employment” excludes volunteers. This is a compliance-critical limitation: it prevents the Fund’s skills development support from being used to treat volunteer service as if it were employment for the purpose of eligibility under paragraph (c).
From a practical perspective, this limitation can affect how organisations structure programmes, participant eligibility, and documentation. If an organisation runs a skills initiative involving volunteers, it must ensure that the relevant participants for Fund-supported components meet the “persons in employment” concept as limited by Section 2(2). Lawyers should expect that grant administrators may require evidence distinguishing employed participants from volunteers.
How Is This Legislation Structured?
The Regulations are concise and structured around two provisions. Section 1 provides the citation. Section 2 sets out the prescribed purposes. There are no additional parts or complex sub-structures in the extract, and the operative content is essentially contained in Section 2(1) and (2).
Within Section 2, the structure is an enumerated list of permissible expenditure categories: paragraph (a) (grants to eligible companies/firms/organisations for consultant-assisted upgrading and training), paragraph (b) (grants to NTUC), and paragraph (c) (grants to named organisations for skills development and retraining). Section 2(2) then adds a definitional limitation applicable only to paragraph (c), which is a common legislative technique to avoid unintended effects on other categories.
Who Does This Legislation Apply To?
The Regulations apply primarily to the administration and expenditure of the Skills Development Fund. However, they have direct practical effects on potential grant recipients and on the participants in skills development programmes funded under the prescribed purposes.
For paragraph (a), the Regulations contemplate grants to eligible employers and organisations, including companies, variable capital companies, and firms wholly or substantially owned by citizens or permanent residents of Singapore, as well as “any organisation” (subject to the purpose and consultant/training upgrading requirement). For paragraph (b), the recipient is NTUC. For paragraph (c), the recipients are limited to the named organisations. Additionally, Section 2(2) affects how “persons in employment” is treated for paragraph (c), excluding volunteers from that category.
Why Is This Legislation Important?
Although the Regulations are short, they are legally significant because they determine the lawful boundaries of Fund expenditure. In a levy-funded system, the public policy rationale is that monies collected through the levy should be used for skills development in a controlled and accountable manner. By prescribing purposes, the Regulations help ensure that Fund monies are directed to activities that align with legislative intent.
For practitioners, the Regulations are important in several recurring scenarios. First, they inform grant eligibility and programme design. Employers and organisations must align their proposals with the specific categories in Section 2(1). Second, they affect compliance documentation: for example, under paragraph (c), organisations must distinguish employed participants from volunteers to satisfy Section 2(2). Third, they support governance and audit readiness. When Fund monies are used, internal controls and board oversight should be able to demonstrate that expenditure falls within the prescribed purposes.
Finally, the Regulations illustrate how legislative amendments can refine the scope of permissible grants. The reference to S 463/2020 (effective 15/06/2020) signals that the legal framework is not static. Lawyers advising on current applications or disputes should therefore verify the latest version (as at 27 Mar 2026 in the extract) and confirm that programme structures remain compliant with any amendments.
Related Legislation
- Skills Development Levy Act (Cap. 306) — authorising provisions for the Skills Development Fund and the making of prescribed-purpose regulations
- Trade Unions Act (Cap. 333) — referenced for the status of NTUC as a registered trade union
- Companies Act (Cap. 50) — referenced for the legal form of certain named organisations (companies limited by guarantee)
- Societies Act (Cap. 311) — referenced for the legal form of certain named organisations (societies)
- Charities Act (Cap. 37) — referenced for the legal status of the Association of Muslim Professionals as a charity
Source Documents
This article provides an overview of the Skills Development Levy (Prescribed Purposes) Regulations for legal research and educational purposes. It does not constitute legal advice. Readers should consult the official text for authoritative provisions.