Most Singapore SMEs are familiar with productivity grants that fund software, equipment or consultancy. Far fewer know that the government will also help pay the salary of a foreign specialist you fly in specifically to train your local team, or fund your own staff to be sent overseas to learn a capability that simply does not exist yet in Singapore. That is the purpose of the Capability Transfer Programme (CTP), administered by Workforce Singapore (WSG) in partnership with the Ministry of Manpower (MOM) and relevant sector agencies.
The CTP sits in an unusual position in the grant landscape: it is not a training grant in the SkillsFuture sense, and it is not a productivity or digitalisation grant either. It exists specifically to close a capability gap that cannot be filled from the existing local talent pool, by bringing the knowledge in from overseas and then locking it into your local workforce through structured, funded training.
This guide explains what the CTP actually funds, who qualifies, how the co-funding rates work by company size and impact level, and how it fits alongside the work pass concessions that make bringing in a foreign specialist administratively realistic. MOM has previously set out the scheme’s rationale in its own parliamentary reply on the Capability Transfer Programme.
What the CTP Is For
The CTP aims to improve local-foreign workforce complementarity by facilitating the transfer of capabilities from foreign specialists to Singapore-based employees. It is designed to plug capability gaps quickly in a fast-changing global market, and to complement rather than duplicate other capability development schemes run by different government agencies.
Project proposals are assessed individually against three criteria: the existing local capability gap the project addresses, the potential impact of the capability transfer on the local workforce, and how the project connects to the wider industry rather than benefiting only the applicant company. This is an important distinction from more transactional grants: CTP applications are evaluated as capability-building projects, not simply as expense reimbursement requests.
The Three Supported Transfer Modes
Under the CTP, a qualifying project can take one of three forms:
- Bringing in foreign specialists to Singapore to train local employees in new capabilities, on a time-limited basis.
- Facilitating remote capability transfer from a foreign specialist who does not need to be physically present in Singapore.
- Sending local employees overseas for training attachments to acquire capabilities that are not yet available domestically.
Funding can cover salary support for the foreign specialist, for a local specialist who was previously trained by that foreign specialist or trained overseas and is now conducting follow-on training in Singapore, and for local trainees sent abroad. Attachment-related costs such as airfare and cost-of-living allowances are also supportable, and for industry-level projects, venue and equipment costs may be considered as well.
Eligibility
To qualify, an applicant must be a company, association or professional body that is locally registered or incorporated and operating in Singapore. Non-profit organisations that are not business entities are not eligible for the internship-style capability programmes Enterprise Singapore runs elsewhere, but the CTP itself is open to companies, industry associations and professional bodies pursuing genuine capability transfer projects, evaluated case by case rather than against a fixed checklist.
There is no requirement that the applicant be an SME. Both non-SMEs and SMEs can apply, though, as set out below, the funding quantum differs materially by company size.
Funding Rates by Company Size and Impact Level
WSG determines funding support in consultation with relevant sector agencies, on a co-funding basis, and the rate depends on the assessed level of impact of the project (low, medium or high) and the type of entity applying. The published funding categories are as follows:
| Applicant type | Low impact | Medium impact | High impact |
|---|---|---|---|
| Non-SMEs | 30% | 30% | 50% |
| SMEs | 30% | 50% | 70% |
| Industry-level projects | 50% | 70% | 90% |
These rates apply to the salary support, cost-of-living allowance and airfare components for foreign trainers, foreign specialists conducting remote capability transfer, local trainers delivering follow-on training, and local trainees sent overseas. A separate category covers equipment associated with transferring capabilities for industry-level projects, which can be funded up to 70%, subject to funding caps. Venue costs may also be supported for industry-level projects where training is conducted in Singapore by a foreign trainer.
The distinction between SME and non-SME funding rates mirrors the general design of Singapore’s grant system, where smaller enterprises typically receive higher co-funding support because they have less capacity to self-fund capability building. Companies unsure whether they meet the SME threshold, or how CTP might be combined with other schemes, should also read our guide on how to stack Singapore government grants.
Work Pass Concessions for the Foreign Specialist
A practical obstacle to any capability transfer project is getting the foreign specialist into Singapore on an appropriate work pass in the first place, particularly where the assignment is short and does not neatly fit the usual Employment Pass salary and duration profile. The CTP framework anticipates this: work pass concessions are available to facilitate the entry of the foreign specialist, are time-limited, and are renewable if necessary, subject to case-by-case approval by MOM.
This is a meaningful difference from a standard Employment Pass application. Companies structuring a short, defined-scope training assignment should raise the CTP work pass concession explicitly with WSG and MOM at the application stage rather than assuming the specialist must qualify under the ordinary Employment Pass framework. For general context on Singapore’s main work pass categories, see our comparison of Employment Pass vs ONE Pass vs PEP.
How the CTP Differs From Other Workforce Schemes
It is easy to confuse the CTP with Singapore’s other manpower-related support schemes, but the target problem is different in each case:
| Scheme | What it primarily solves |
|---|---|
| Capability Transfer Programme (CTP) | Bringing in a capability that does not yet exist in the local workforce, via a foreign specialist or overseas attachment |
| Career Conversion Programme (CCP) | Reskilling an existing local hire into a new job role or sector, typically via structured on-the-job training |
| SkillsFuture Enterprise Credit (SFEC) | A broad, low-friction credit for enterprise transformation and workforce development activities generally |
Companies already running a reskilling programme for existing staff should compare the CTP against our guide to the Career Conversion Programme (CCP), and against the SkillsFuture Enterprise Credit, to work out which scheme (or combination) actually matches the problem they are solving. A company trying to build a genuinely new capability, say, advanced precision engineering maintenance techniques a local team has never been exposed to, is a CTP candidate. A company trying to move an existing administrative employee into a data analyst role within the business is a CCP candidate.
How to Apply
The CTP does not run on a fixed-cycle application portal in the way some grants do. Companies with a capability transfer project in mind approach WSG directly to discuss the proposal before a formal application is prepared. WSG will then work with the company, and where relevant the appropriate sector agency, to assess the project against the eligibility and impact criteria and determine the applicable funding tier.
Because the assessment is proposal-based rather than checklist-based, the strength of the application depends heavily on how clearly the company can articulate: the specific capability gap, why it cannot be filled by existing local talent or training, the concrete transfer mechanism (foreign specialist in Singapore, remote transfer, or overseas attachment), and how the new capability will be embedded in the local workforce once the foreign specialist’s engagement ends. MOM’s own factsheet on the Capability Transfer Programme sets out this rationale in more detail, and recent parliamentary updates confirm the programme remains active, with new resident workers benefiting from CTP-supported projects approved as recently as 2024 and 2025 in sectors including precision engineering and environmental services.
Common Pitfalls
- Treating the CTP as a training subsidy for skills already available locally. The scheme exists for genuine capability gaps, not general upskilling that could be met through a local training provider.
- Failing to plan the follow-on training component. Funding for a local trainer’s follow-on training is only supportable where that trainer was previously trained by the foreign specialist or trained overseas; the transfer chain needs to be documented.
- Leaving the work pass application to the last minute. Because the concession is case-by-case and time-limited, the immigration and grant applications should be coordinated together, not treated as sequential, unrelated processes.
- Underestimating the industry-linkage question for higher funding tiers. Projects that show a clear line to broader industry capability, not just one company’s internal training, tend to be assessed at a higher impact level.
Conclusion
The Capability Transfer Programme is a narrow but genuinely useful tool for Singapore companies that need to import a capability the local labour market cannot yet supply, whether that is a specialised manufacturing technique, an emerging technology skill, or sector-specific expertise. Because funding rates rise sharply with SME status and assessed impact, and because the accompanying work pass concession solves a real practical bottleneck, it is worth structuring the proposal properly rather than defaulting to a standard Employment Pass application and a self-funded training budget.
Raffles Corporate Services can help you assess whether a planned capability-building initiative fits the CTP criteria, prepare the supporting proposal, and coordinate the associated work pass application.
— The Editorial Team, Raffles Corporate Services