Safeguards also included to prevent employer abuse of training scheme
The Singapore government will continue to provide allowance subsidies to encourage host organisations under the Graduate Industry Traineeships (GRIT) scheme to convert trainees into full-time staff, according to Manpower Minister Tan See Leng.
The GRIT scheme is a joint initiative by the Ministry of Manpower and Workforce Singapore (WSG) to support fresh graduates who want to gain exposure in leading companies in Singapore.
It offers up to 800 structured traineeships for a period of three to six months, where trainees will receive an allowance ranging from $1,800 to $2,400 during the period.
The government will fund 70% of the traineeship allowance, while the host organisation will fund the remaining 30%, according to its website.
Tan said in Parliament that the government will also extend allowance subsidies to host organisations that convert the trainees to full-time staff.
"We will continue to provide allowance subsidies for host organisations that convert trainees who have completed at least three months of the traineeship," the manpower minister said.
This aims to support organisations in offering full-time employment to trainees where possible, according to the minister.
"In addition, as part of the check-in with the trainees before the end of the traineeship, WSG will also proactively share employment resources, including career matching services to support trainees' transition to full-time employment," Tan said.
Preventing employer abuse
The GRIT scheme, which will commence in October, seeks to help fresh graduates in Singapore gain industry-relevant experience and skills.
"We also capped the duration of traineeships at six months to encourage employers to seriously consider the trainees for a higher-paying full-time job at the end of the traineeship," Tan said.
The minister stressed that GRIT is not an employment subsidy, but is designed to build skills in the workforce through on-the-job training.
The WSG will also carry out checks on the host companies' recent retrenchment activities to ensure that traineeship roles are not similar to those of laid-off positions.
"GRIT is designed to mitigate the risk of displacing existing employees, including mid-career workers," Tan said.
"The traineeship allowance is calibrated to be lower than what host organisations can receive for mature individuals undergoing attachments under the Mid-Career Pathways Programme."
Fresh graduates' job anxiety
The GRIT scheme comes as the government acknowledges the "anxieties and challenges" faced by fresh graduates in the job search.
"We assess that this might be partly driven by a significantly higher number of fresh graduates from the 2025 cohort entering the job market immediately after graduation compared to last year," Tan said.
According to the minister, about 2,400 more fresh graduates this year are looking for a job instead of taking a gap break or pursuing further studies. This has led to an additional 1,700 fresh graduates who are actively trying to find work.
"Moreover, external factors including economic headwinds from increased trade tensions, the imposition of tariffs, and geopolitical conflict and growing concerns over artificial intelligence taking over entry-level jobs have added to the anxieties of our fresh graduates," Tan said.
The Singapore government has warned that global economic headwinds may lead to slower hiring among organisations this year.
Prime Minister Lawrence Wong also recently acknowledged that while some jobs will "disappear" due to AI, new jobs and opportunities will be created from tech-driven disruption.
"I assure you: even as we embrace AI and technology, we will not lose sight of our key priority," Wong said in his National Day Rally speech in August.
