Skills Development Fund

The Skills for Competitiveness Project (S4C) is a five-year project financed by Asian Development Bank (ADB) and Agence Française de Développement (AFD) and implemented by Ministry of Labor and Vocational Training (MLVT), Ministry of Education, Youth and Sport (MoEYS), and Ministry of Economy and Finance (MEF). The objective of the project is to develop human resources in higher value-added industries by (i) strengthening selected public post-secondary technical training institutes (TTIs) in priority sectors and locations; (ii) promoting work-based learning programs to upskill the current workforce; and (iii) supporting the government's Skills Development Fund.

Under the Output 3 (Innovative financing mechanisms expanded), S4C project provides support to expand Skills Development Fund (SDF) Pilot Project, which has been implemented by MEF since 2018, provides training opportunities for at least 3,500 persons in labor force, develops capacity of MEF’s Department of Macroeconomic and Fiscal Policy to strengthen its management of the pilot SDF, and provide support for the establishment of a new SDF agency by producing key policy study and knowledge products which include a long-term skills development road map. The priority sectors of the SDF are 1) Manufacturing, 2) Electronics, 3) Construction, 4) Information and Communication Technology (ICT), and 5) Tourism and Hospitality for stimulation of demand-driven skills training project through Public-Private Partnership (PPP).