Firms converting GRIT trainees to full-time staff after 3 months will continue to get subsidies

SINGAPORE – Companies that convert trainees to full-time employees after at least three months on the new government-funded traineeship scheme for fresh graduates will continue to get allowance subsidies, said Manpower Minister Tan See Leng on Sept 23.

Host organisations on the Graduate Industry Traineeships (GRIT) scheme are strongly encouraged to provide full-time employment as part of efforts to channel as many fresh graduates as possible into full-time jobs, said Dr Tan in Parliament.

The Ministry of Manpower (MOM) will track how many trainees find full-time work after 12 months, and the proportion of those employed with their host organisations, he added.

, offering 800 traineeships of three to six months to fresh graduates.

MOM will also regularly make available online job vacancies for fresh graduates, Dr Tan said.

These entry-level jobs range from financial services and professional services to manufacturing and wholesale trade, he said, citing roles such as data analyst, research and development, policy and strategy, in companies like DBS Bank, Micron, Sembcorp and Grab.

Dr Tan was responding to a question from Mr Liang Eng Hwa (Bukit Panjang) on whether companies are hiring for fewer entry-level jobs. A total of 19 parliamentary questions on graduate employment and the GRIT scheme were filed.

Addressing Mr Xie Yao Quan (Jurong Central), who asked if artificial intelligence is displacing entry-level jobs, Dr Tan acknowledged that AI is reshaping these roles, but the shift towards generative AI has also created new opportunities in AI-related fields.

“What we hope to do is to ensure that our young graduates continue to be ready, flexible, nimble enough to be able to adapt to leverage AI positively,” he said.

In response to Dr Hamid Razak (West Coast-Jurong West GRC), who asked what milestones the ministry will look at before ceasing the GRIT scheme, Dr Tan said MOM will monitor gross domestic product (GDP) growth and long-term unemployment statistics.

Dr Tan noted that Singapore’s GDP grew year on year by 4.3 per cent in the first half of 2025, calling GRIT a “very pre-emptive” approach to help fresh graduates gain confidence and exposure, as well as build their networks.

The proportion of graduates in permanent employment has also increased, at about 44 per cent in 2025 compared with 37 per cent in 2024, he added.

He said

from 48 per cent to 88 per cent in June.

“There is that fear, that angst, that apprehension, but the reality on the ground is such that we are still in a relatively stable state,” Dr Tan said.

“What we are trying to do is to provide a reassurance, because to the individual looking for the job, he is most affected and impacted. No amount of statistics I share with them will be able to allay his concerns and his fears and his anxiety.”

Dr Tan also addressed concerns about employers potentially abusing the GRIT scheme, using it as a “back door” to get around hiring graduates full time, as Mr Patrick Tay (Pioneer) described it.

Workforce Singapore (WSG) has implemented safeguards, said Dr Tan. These include a traineeship agreement detailing the allowance, working hours and leave entitlements, which is submitted to WSG for review. The appointed programme partner will conduct check-ins with trainees to ensure they are settling in well, and trainees will be able to report any issues through a dedicated hotline and e-mail address.

Dr Tan said MOM started the scheme with a lower number of 800 places – 500 in the private sector and 300 in the public sector – to avoid crowding out or “cannibalising” potential full-time positions that companies might otherwise offer to fresh graduates.

WSG worked with sector agencies to identify leading companies as host organisations for the programme, he said, adding that the companies have “a good track record” of hiring and training locals.

GRIT is designed to mitigate the risk of displacing existing employees, including mid-career workers, he added.

MOM has carefully selected host organisations that actively support workforce development, including programmes for mid-career employees, Dr Tan said.

WSG will also conduct checks on host companies’ recent retrenchment activities to ensure the traineeship roles are not similar to those of impacted workers, he said.

Dr Tan also highlighted the key considerations in designing the scheme.

The GRIT scheme is not meant to be an employment subsidy typically used to support groups that face more serious and chronic barriers to employment, such as persons with disabilities, he said.

The Government capped the length of the stint at six months to encourage firms to seriously consider trainees for full-time roles, he added.

“The purpose for the GRIT trainees is not to do the same work, but it’s to give them the opportunity to pick up the industry experiences, the practical skill sets, hopefully the soft skills… so that eventually they can quickly get full-time employment after the traineeship duration of up to six months is complete,” he said.

Dr Tan said the scheme builds on positive results seen for trainees from

, where close to 90 per cent of them found regular employment within six months of completing the programme.

However, while SGUT focused on increasing capacity to reduce graduate unemployment during an economic crisis, GRIT is meant to provide a limited number of quality traineeship opportunities to provide reassurance to graduates, he said.

Dr Tan said the maximum allowance cap of $2,400 is about half the median starting salary of fresh graduates from autonomous universities.

This is similar to the quantum for SGUT and is calibrated to ensure that trainees continue to prioritise full-time roles, he said.

“We are prepared to increase traineeship places, extend the programme if economic conditions worsen, or if there is demand for more traineeship places due to good outcomes for both graduates and employers,” he added.