NTUC, ST Engineering and SkillsFuture Singapore Sign First Tripartite Partnership to Upskill Workers in Precision Engineering Sector

The National Trades Union Congress (NTUC), ST Engineering and SkillsFuture Singapore (SSG) have signed a Memorandum of Understanding (MOU) today, marking a first-of-its kind tripartite partnership. This partnership integrates NTUC’s Company Training Committee (CTC) initiative with the SkillsFuture Queen Bee programme, drawing synergies across all three organisations to deliver comprehensive support and enhance access to resources for participating ST Engineering’s suppliers and its workers. The MOU signing also marked the appointment of ST Engineering Land Systems Ltd as the latest SkillsFuture Queen Bee, supporting the Precision Engineering (PE) sector. Held at the e2i Devan Nair Institute for Employment and Employability, the MOU signing was witnessed by NTUC Secretary-General Ng Chee Meng; Chief Executive of SSG Tan Kok Yam; and Group Chief Financial Officer of ST Engineering Cedric Foo.

In support of the tripartite partnership, NTUC Secretary-General Mr Ng Chee Meng said, “We are excited to embark on our first tripartite partnership with SkillsFuture Singapore and ST Engineering. This partnership is expected to upskill at least 1,000 workers across about 40 SMEs within the Precision Engineering sector of ST Engineering Land Systems’ supplier network. We want to continue working with public and private sectors through our Company Training Committees to drive business and workforce transformations. This will enable our workers to gain higher-value jobs, better wages and work prospects, while companies thrive in an increasingly competitive and evolving market.”

Mr Cedric Foo, Group Chief Financial Officer of ST Engineering, who also oversees the procurement function for the Group said, “Our SME suppliers are required to consistently meet exacting standards for our products and solutions. For example, in precision engineering, even slight deviations from specifications can compromise quality and performance. As a large enterprise with more scale and resources, we work to uplift many suppliers. In the Land Systems business, we partner with more than 100 suppliers, many of whom are small and medium enterprises. By collaborating with NTUC and SSG, we are doubling down on our efforts to upskill these suppliers, building a robust ecosystem that offers both breadth and depth in technology and engineering capabilities. This ensures continued development of our products and solutions while upholding standards of excellence that drive mutual success.”

Mr Tan Kok Yam, Chief Executive of SSG said: “This is an ambitious partnership that aims to bring together business transformation, workforce training and SME outreach, to achieve maximum reach and impact to both enterprises and workers. The objective is to provide more comprehensive support to ST Engineering's network of suppliers and their workforce, and level-up their capabilities to fuel the growth of the Precision Engineering sector. We also look forward to working closely with NTUC to extend such a tripartite collaboration model to more of our SkillsFuture Queen Bee partners.”

Transforming Supplier Ecosystem through Tripartite Partnership

Under this two-year tripartite partnership, ST Engineering will spearhead efforts to uplift and upskill the workers of its value-chain of key suppliers across all its business areas, commencing first with the suppliers working with the Land Systems unit. Most of these suppliers are SMEs in the PE sector. Given that the sector is projected to rebound with stronger than expected recovery of semiconductor sales globally and domestically¹, a better skilled workforce will be better poised to meet the forecasted rising demand.

To achieve this, ST Engineering will work with SSG and NTUC to help SME suppliers’ workers adopt new skills and stay competitive in a rapidly evolving industry landscape. For a start, ST Engineering aims to train workers of at least 40 suppliers from its Land Systems business, before scaling up to include suppliers across the Group’s other business areas.

ST Engineering will appoint a dedicated Skills Manager to engage and evaluate the training needs of its suppliers, providing customised guidance on relevant training programmes and SkillsFuture initiatives to address identified skills gaps. The Skills Manager will also organise masterclasses and training activities in areas such as precision engineering, digital additive manufacturing, artificial intelligence, and data analytics to enhance the capabilities of its suppliers’ workforce and help them keep pace with evolving industry demands in line with the national SkillsFuture agenda.

Transforming Suppliers’ Workforce and Business Capabilities through NTUC CTC

As part of the collaboration, NTUC will also support ST Engineering’s suppliers through the CTC and CTC Grant to implement business and workforce transformation plans. Participating suppliers can embark on the NTUC’s Operation and Technology Roadmap to identify areas of business transformation and growth. These efforts aim to strengthen their core capabilities and productivity, while also improving workers’ wages and career development opportunities, thereby achieving win-win outcomes.

Since its launch in 2019, NTUC’s CTCs have helped to drive business success by transforming and enhancing employees’ skills across various industries. The Government provided NTUC with $100 million to scale up this initiative in 2022. The CTC Grant, administered by NTUC’s e2i (Employment and Employability Institute), co-funds up to 70 per cent of qualifying cost for companies’ transformation projects or training tied to the transformation project. As of 31 December 2024, more than 7,400 workers across more than 330 companies with approved CTC Grants could benefit from an average wage increase of five per cent above annual increment, Career Development Plan and/or skills allowance.

ST Engineering’s suppliers and workers will also benefit from joint workshops, training needs analysis, skills upgrading initiatives, advisory and solutioning efforts facilitated by NTUC. This partnership is expected to upskill about 1,000 workers within ST Engineering’s supplier network, equipping them with future-ready skills to enhance their productivity and career progression.

Case Study: ST Engineering’s CTC Journey

ST Engineering is one of many companies that bear testament to NTUC’s efforts in supporting workers, especially PMEs, through CTC and CTC Grant projects. In collaboration with NTUC and ST Engineering Staff Union (STESU), ST Engineering established a CTC in July 2021. Since then, the company has launched 26 CTC Grant projects across its Land Systems, Aerospace, Digital Systems & Cyber, Marine and Urban Solutions businesses, benefiting over 300 employees². Watch this video to find out more.

¹ Ministry of Trade and Industry Media Release on 15 February 2024: https://www.mti.gov.sg/Resources/Economic-Survey-of-Singapore/2023/Economic-Survey-of-Singapore-2023.

² ST Engineering CTC case study: https://www.ntuc.org.sg/uportal/news/PMEs-make-up-nearly-one-quarter-of-workers-to-benefit-from-NTUC-Company-Training-Committee-Grant/