Rationale for Restricting ITE Progression Award to Graduates Pursuing Eligible Diplomas from 2024

Name and Constituency of Member of Parliament

Mr Gerald Giam Yean Song, Aljunied GRC

Question

To ask the Minister for Education (a) what is the rationale for restricting the ITE Progression Award (IPA) to ITE graduates pursuing eligible diplomas from 2024 onwards; (b) how this aligns with the Government's emphasis on lifelong learning and workforce development; (c) whether the Ministry has assessed the equity of excluding pre-2024 diploma graduates and plans to review their inclusion; and (d) what steps are being taken to ensure consistent financial support for ITE graduates pursuing further education across all time periods.

Response

1. The ITE Progression Award (IPA) was introduced in 2024 to address the growing wage gap between ITE's Nitec and Higher Nitec graduates and diploma- or degree-holders. It provides financial support to help ITE graduates upskill to a diploma earlier in their careers and boost their savings for longer-term goals, such as home ownership or retirement.

2. The two-step award supports ITE graduates to enrol in a diploma by providing a top-up of $5,000 to their Post-Secondary Education Account (PSEA) at the start of diploma studies, and encourages them to complete their diploma with another top-up of $10,000 to the CPF-Ordinary Account (OA) when they do so.

3. Eligible ITE graduates who were already enrolled in diplomas at MOE-funded institutions as of 1 March 2024 will still receive the $10,000 OA top-up under the IPA after they complete their diplomas.

4. The IPA is part of the Government's broader suite of schemes that provide support for lifelong learning across various life stages. ITE graduates who had upgraded to diplomas before 2024 should already start to enjoy better employability and higher wages, and are therefore not part of the target group for the IPA. To support them to upskill further, there are other schemes such as the Workfare Skills Support Scheme and the SkillsFuture Level-Up Programme, which provide financial support like training allowance during their course. Course fees are also heavily subsidised for Singaporeans at the Institutes of Higher Learning and for courses supported by SkillsFuture Singapore.