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A Report on the Review of the SME Funding Schemes
Chapter 4
SME Training Fund
4.1 Launched in mid January 2002, the STF encourages SMEs to enhance human resources by providing them with financial assistance when they send employers or employees to training which is relevant to their businesses. The STF is divided into two parts, i.e. "employers' training" and "employees' training". For each successful application, the STF may provide up to 50% of the training expenses incurred or the non-committed balance of an individual SME's funding ceiling for employers' or employees' training, whichever is the less. The maximum amount of grant that an SME could obtain, on a cumulative basis, for employers' training is $5,000, and that for employees' training is $10,000.
4.2 As at end October 2002, more than 7 800 applications were approved. The amount of grant involved was about $19 million. This has triggered a spending of over $48 million from SMEs on employers/employees training. About 4 500 SMEs and 7 200 employers/employees have so far benefited from the scheme. Detailed statistics are at Annex 3 (pdf format).
Recommendations
4.3 The Committee is of the view that while the current level of grant is effective in encouraging SMEs to provide training to their employers/employees, it is not sufficient to facilitate more comprehensive training, or training activities which are more expensive (e.g. tailor-made programmes). The Committee has therefore come up with the following recommendations:
| Recommendation 1: |
To increase the maximum amount of grant an SME may obtain, on a cumulative basis, for employers' training from $5,000 to $10,000, and that for employees' training from $10,000 to $20,000. In other words, the total maximum amount of grant an SME may obtain would be increased from $15,000 to $30,000. |
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The Committee recommends that the revised ceiling should also apply to SMEs which have received grant under the STF prior to the new ceiling coming into effect. | |
| Recommendation 2: |
To do away with the requirement that applications have to be submitted prior to the commencement of the training courses, and to allow SMEs to submit applications either before or after the commencement of the training courses. In the case of the latter, applications have to be submitted not later than the thirtieth calendar day after the completion of the training courses. |
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The Committee is aware that it is not uncommon for employers/employees of SMEs to decide to enroll in a training course just shortly before the course commences. Also, some may only come to realise that they could apply for the STF after the course has commenced. In both circumstances, the SMEs will have missed the deadline for submitting applications to the STF. As a facilitating measure, the Committee recommends that the current requirement that applications must be submitted prior to the commencement of training courses be removed. | |
Chapter 5 : SME Development Fund
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