New Bill to merge workforce agencies amidst AI, economic shifts

The SWDA will gain legal authority to issue mandatory guidelines for career providers.

Singapore has introduced a Bill to establish the Skills and Workforce Development Agency (SWDA), Manpower Minister Tan See Leng announced.

Speaking in Parliament on 5 May, Tan said the agency, a merger of SkillsFuture Singapore (SSG) and Workforce Singapore (WSG), is expected to be established in the third quarter of the year if the Bill is passed.

“Individuals will have a single interface to the full suite of career guidance, skills training and job matching support offered by SWDA,“ he added.

The merger comes amidst rapid technological change, geopolitical uncertainty, and demographic pressures reshaping labour markets.

“Employees of WSG and SSG will be transferred to SWDA on terms that are no less favourable than their present ones,“ Tan said.

He cited the rise of artificial intelligence (AI), global economic disruptions, and Singapore’s ageing population as key drivers behind the restructuring.

The agency will expand AI-related workforce initiatives, including free access to premium AI tools for selected training participants announced at Budget 2026.

The SWDA will also integrate workforce transformation schemes from both agencies into a single enterprise digital portal.

Moreover, the Bill gives the statutory board powers to regulate and issue guidelines for providers of career, employment, and training services.

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