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Employees from SSG and WSG will be transferred to the new agency on terms "no less favourable than their present ones", with support in place for wellbeing, reskilling, and new career pathways, Manpower Minister Dr Tan See Leng said.
Singapore is set to establish a new statutory board – the Skills and Workforce Development Agency (SWDA) – following the introduction of the Skills and Workforce Development Agency Bill in Parliament on 5 May 2026.
Speaking at the Second Reading, Minister for Manpower Dr Tan See Leng said the new agency will bring together SkillsFuture Singapore (SSG) and Workforce Singapore (WSG) to create "a single upgraded engine for skills and workforce development”, aimed at helping workers and employers navigate a rapidly changing labour market.
Why SWDA is being formed
The move follows earlier plans announced at Budget 2026 to merge the two agencies, which were split in 2016 to focus separately on training (SSG) and employment facilitation (WSG).
Minister Tan noted that while the restructuring "substantially delivered what it set out to do", shifts in technology, geopolitics, and demographics have created a very different operating environment.
"ChatGPT did not exist five years ago. The capabilities of artificial intelligence we see today would have been science fiction in 2016.
"But the technological wave is now here, and it is picking up speed and momentum," he said, adding that global shocks and Singapore’s ageing workforce have further intensified the need for change.
"In short, we live in a different world from ten years ago. What worked in the past decade will need significant transformation, to be more predictive and anticipatory as well as be more responsive and targeted moving forward."
Against this backdrop, SWDA will integrate the capabilities of both agencies to deliver more "predictive and anticipatory" as well as "responsive and targeted" workforce support.
What SWDA will do
Once established – targeted for the third quarter of 2026, SWDA will focus on three key areas: individuals, employers, and the broader workforce ecosystem.
For individuals, the agency will consolidate career guidance, skills training, and job matching into a single touchpoint, supported by enhanced digital tools and AI-driven recommendations.
The agency will tailor support across life stages – from graduates entering the workforce, to mid-career workers navigating transitions, to seniors seeking longer careers. This includes expanded traineeships, reskilling pathways, and career guidance tools such as the AI-powered "Career Kaki".
Preparing workers for an AI-driven economy will also be a priority. As announced at Budget 2026, individuals taking selected courses will receive free access to premium AI tools as part of a broader effort to future-proof their skills.
For employers, SWDA will act as a workforce transformation partner – supporting hiring, skills development, and job redesign. By integrating skills intelligence with labour market data, the agency aims to enable more skills-first workforce planning and internal mobility.
Minister Tan added that the agency will also bring together existing schemes under a unified platform, including workforce transformation programmes and grants, to simplify access for businesses.
At the ecosystem level, SWDA will work more closely with the industry in aims to raise quality standards, improve accessibility, and develop new solutions by spurring innovation and collaboration.
work more closely with private-sector players – including recruitment firms, training providers, and HR tech companies – to raise standards and spur innovation in career and employment services.
"Our goal, ultimately, is a vibrant private sector, complemented with public employment services and programmes, that will be a catalyst and enabler for broad-based workforce transformation and adaptation, amid rapid changes in the labour market," Minister Tan shared.
What the SWDA Bill covers
The SWDA Bill sets out the legislative framework to establish the agency and transfer functions from SSG and WSG. It formally establishes SWDA as a statutory board, with functions covering skills development, employment facilitation, and the promotion of career and training services.
The Bill also outlines governance structures aligned with the Public Sector (Governance) Act 2018, including provisions on board composition, decision-making, and financial oversight.
In addition, it grants SWDA powers to administer and regulate the sector – including issuing guidelines and codes of practice for training and career service providers.
Employees from SSG and WSG will be transferred to the new agency on terms "no less favourable than their present ones". Minister Tan elaborated: "We have been closely engaging and supporting all officers, to ensure that both their well-being and career aspirations are well-cared for amid this transition.
"The refreshed mission of SWDA will provide new growth opportunities and career pathways for staff. We will also provide opportunities for officers to reskill to equip themselves for new job roles, so that no one will inadvertently fall through the cracks."
The Bill will also repeal the existing SSG and WSG Acts, alongside amendments to related legislation such as the Private Education Act and Skills Development Levy Act.
Beyond structural changes, the formation of SWDA is intended to reinforce a broader shift towards lifelong learning and proactive career management.
"In an era where AI is transforming job requirements at a pace that no single institution can fully anticipate, lifelong learning and career health must become the norm and a practical reality," Minister Tan affirmed. "It must be something that Singaporeans can and should invest in and take ownership of throughout their entire working lives, and not a resource that you turn to only when circumstances compel you to do so."
If the Bill is passed, SWDA is expected to be operational by Q3 2026.
ALSO READ: MOM Committee of Supply 2026: All the key updates employers need to know
Photo / Screenshot of Minister Tan's speech, Parliament sitting on 5 May, MDDI YouTube
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