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Lean Enterprise Development (LED) Scheme

The LED Scheme helps progressive SMEs transform and grow in the new manpower-lean landscape.

At a glance

Related form LED Scheme application form

What is it

The LED Scheme supports your company to:

  • Become more manpower-lean.
  • Build a stronger Singaporean core.
  • Develop a better quality workforce.

A cross-agency LED taskforce comprising SPRING, WSG, NTUC, MOM, EDB, STB, IMDA, BCA and e2i, will help you in a coordinated manner to tap on relevant assistance schemes. Relevant assistance schemes include:

Assistance scheme Administering agency
Automation Support Package SPRING
Building Information Model Fund BCA
Business Improvement Fund STB
Capability Development Grant SPRING
Inclusive Growth Programme e2i
Mechanisation Credit BCA
Productivity Innovation Project BCA
SMEs Go Digital IMDA
WorkPro WSG
You can find solutions that can help address your business needs, and also check out WSG’s manpower-lean programmes.

In addition to the existing assistance schemes, the LED Scheme also provides you with transitional manpower support if temporary flexibility in deploying foreign manpower is required.

The transitional manpower support will be tailored to the specific needs of the transformational projects and may include the following:

  • Allow companies to reduce the number of Work Permit holders (WPHs) without affecting the existing quota for S Pass holders.
  • Allow companies to have temporary foreign workers while recruiting and training locals to take on better jobs when the new business models have stabilised.
  • Allow pooling of foreign expertise at the industry level to help transfer know-how to the local workforce.

Example – How to become more manpower-leanShow

Example – How to become more manpower-lean

A logistics company wants to automate processes to reduce reliance on foreign workers.

What they did

They are able to reduce number of Work Permit holders (WPHs) from 25 to 15.

However, they also lose 2 higher-skilled S Pass holders due to foreign worker quota limits, i.e. total workforce has shrunk.

This makes the transition difficult because they need to retain the 2 higher-skilled S Pass holders and local employees in order to operate the new equipment.

  Before Interim After
Local employees 60 60 60
Higher paid and more productive
Work Permit holders

Example 1 - Work Permit holders - Before

25

Example 1 - Work Permit holders - Interim

15

Example 1 - Work Permit holders - After

15

S Pass holders

Example 1 - S Pass holders - Before

15

Example 1 - S Pass holders - Interim

13
+ 2 from LED Scheme

Example 1 - S Pass holders - After

13

How LED Scheme helps

The temporary foreign manpower adjustment will help in the transition so that they are able to retain all 15 S Pass holders in the interim.

Meanwhile, they can train the remaining locals to operate the new equipment.

Eventually, with the trained local workers, they can reduce reliance on S Pass holders while paying their local workers more.

Example – How to strengthen the Singaporean coreShow

Example – How to strengthen the Singaporean core

A design company wants to take on more projects using Building Information Modelling (BIM) and needs to hire more trained staff.

What they did

The company sponsors local polytechnic and ITE students so that they can join them after graduation or National Service (NS).

However, they don’t have enough foreign worker quota to hire more foreign workers to meet current manpower needs.

  Before Interim After
Local employees 85 85 90
Higher paid and more productive
S Pass holders

Example 2 - S Pass holders - Before

15

Example 2 - S Pass holders - Interim

15
+ 5 from LED Scheme

Example 2 - S Pass holders - After

15

Output $10 million $15 million $15 million

How LED Scheme helps

The temporary foreign manpower adjustment will help them hire some S Pass holders in the interim, while the students are still in school or doing NS. Upon graduation or completion of NS, they will take over the interim S Pass holders.

This helps them grow and strengthen the Singaporean core of its workforce. They also become more manpower-lean since output increases at a greater rate than headcount. This leads to better salaries for productive local employees.

Eligibility

The LED Scheme is open to all SMEs that are interested to become more manpower-lean, develop a stronger Singaporean core, and build a better quality workforce.

It is preferred if your proposal:

  • Can be scaled up to transform practices in your industry within 3 years.
  • Involves a group of companies.
  • Is endorsed by the relevant industry association or union.

How long it lasts

If approved, the transitional manpower support for each SME project will be reviewed annually and renewable for up to three years.

How to apply

To submit a proposal for the LED Scheme:

  1. Download the LED Scheme application form.
  2. Fill up the form.
  3. Email it to leds@mom.gov.sg.

LED Multipliers

Our LED Multipliers are partners who help us raise awareness about the LED scheme. You can contact them if you wish to:

  • Find out more about the LED Scheme.
  • Seek their advice on your proposal to develop LED projects.
LED Multiplier Email
Asian Culinary Institute (ACI) info@aci.edu.sg
Association for Small and Medium Enterprises (ASME) enquiries@smecentre-asme.sg
Association of Early Childhood and Training Services (ASSETS) secretariat@assets.org.sg
Association of Singapore Marine Industries (ASMI) admin@asmi.com
Capelle Academy contactus@capelleconsulting.com
Restaurant Association of Singapore (RAS) zac.low@ras.org.sg
Singapore Business Federation (SBF) productivity@sbf.org.sg
The Singapore Contractors Association (SCAL) enquiry@scal.com.sg
Singapore Chinese Chamber of Commerce and Industry (SCCCI) corporate@sccci.org.sg
Singapore Furniture Industries Council (SFIC) Institute enquiry@sficinstitute.com
Singapore Institute of Retail Studies (SIRS) courses@sirs.edu.sg
Singapore Manufacturing Federation (SMF) contact@smfederation.org.sg
Singapore National Employers Federation (SNEF) webmaster@snef.org.sg
Singapore Polytechnic (SP) tie@sp.edu.sg
Singapore Precision Engineering and Technology Association (SPETA) admin@speta.org
Singapore Productivity Association (SPA) customersvc@spa.org.sg
U SME sme@ntuc.org.sg
Workforce Advancement Federation (WAF) info@waf.org.sg

LED bulletin

October 2017

  • Cobie At Your Service! – Cali Café & Bar
  • LED Symposium 2017 – Transform and Grow – Towards Lean Industries

May 2017

  • Currying Up! – Singapore Curry by Velu’s
  • Helping Everyone Build – Tiong Seng

February 2017

  • Painting New Change – Johong Hardware & Paints
  • Joint Collaborations: Lunch is Ready! – The Association of Early Childhood and Training Services (ASSETS)

January 2017

  • Visualising the Future of Design – Workforce Advancement Federation (WAF)

December 2016

  • The Automated Advantage – Freshening Industries
  • Urbanising Pest Control Operations – Pestbusters Singapore

November 2016

  • LED Symposium 2016 - Transform and Grow – Building Manpower-Lean SMEs
  • Industry Transformer – Container Depot Association (Singapore) (CDAS)

October 2016

  • Co-opetition – Cooperate to compete
  • Popeyes – Cutting the queue!
Last Updated: 17 November 2017