With initiatives to foster innovation, enhance business competitiveness and strengthen the business ecosystem, Budget 2025 supports businesses not only in thriving in the present but also in being well-positioned for long-term success.

Singapore has demonstrated resilience with a strong recovery from the Covid-19 pandemic. The economy grew by 4.4%, inflation eased and Singaporeans saw wage increases that outpaced inflation. Income inequality is at its lowest since 2000.

Despite this strong performance, the budget anticipates greater global uncertainty and downside risks with growth projected to be moderate at 1% to 3% and inflation expected to average 1.5% to 2.5%.

Here is a round-up of information for businesses:

Tackling Cost Pressures

Corporate Income Tax Rebate

  • 50% rebate for Year of Assessment 2025. Provided for every active company that employed at least one local employee last year a minimum benefit of S$2,000. Total benefit capped at S$40,000 per company.

Enhanced Progressive Wage Credit Scheme

  • Increased Government co-funding levels for wage increases of lower-wage workers:
    • From 30% in 2025 to 40%.
    • From 15% in 2026 to 20%.

Advancing Growth Frontier

Three key focus areas:

  • Enhancing Technology & Innovation
    • Allocation of S$3 billion to top up National Productivity Fund.
    • Investment of ~S$1 billion in R&D infrastructure (refreshing our public biosciences and medtech research infrastructure in the greater one-north area and developing a new national semiconductor R&D fabrication facility).
  • Strengthening Enterprise Ecosystem
    • Extension of internationalization and mergers & acquisitions support schemes.
    • Launch of Global Founder Programme by EDB to attract global founders.
    • Continue to encourage adoption of off-the-shelf technology solutions like AI powered analytics and digital marketing tools through initiatives like the Productivity Solutions Grant and the SMEs Go Digital.
    • Up to S$150 million for a new Enterprise Compute Initiative to support AI adoption by enterprises.
    • Deployment of some Government investment funds as patient capital with longer investment horizons, to help enterprises with longer growth trajectories.
    • Providing high-growth local enterprises more financing options via S$1 billion Private Credit Growth Fund.
    • Introduction of tax incentives for Singapore-based companies and fund managers that choose to list in Singapore and grow their economic activities here. Tax incentive will also be introduced for fund managers which invest substantially in Singapore-listed equities, to encourage more investment in our capital markets.
  • Tackling Infrastructure & Resource Constraints
    • Connectivity
      • Tuas Port is progressing well, reinforcing Singapore as a leading maritime hub.
      • Achieved islandwide 5G coverage, upgrading our Nationwide Broadband Network to deliver speeds up to 10 times faster.
      • Changi Airport Terminal 5 to break ground, increasing capacity by over 50%.
      • Top-up of Changi Airport Development Fund by S$5 billion.
    • Energy Security and Sustainability
      • Expansion of low-carbon electricity imports (piloted with Peninsula Malaysia and expanded the capacity of a power trading initiative with Laos, Thailand and Malaysia).
      • Study on the potential deployment of nuclear energy in Singapore.
      • Top-up of Future Energy Fund by S$5 billion.

Equipping Workers Throughout Life

    • Encouraging Lifelong Learning
      • Provides Singaporeans aged 40 and above with S$4,000 in SkillsFuture Credit.
      • Individuals can apply for training allowance of up to S$3,000 per month for selected full-time courses. They will have 24 months’ worth of allowance, which is up to S$72,000 per worker.
      • Training allowance extended to workers undergoing part-time training, with a fixed allowance of S$300 per month for learning expenses.
      • Support for lower-wage workers through an enhanced tier under the Workfare Skills Support scheme, modelled after the SkillsFuture Level-Up Programme, starting at age 30.
    • Supporting Enterprises in Workforce Transformation
      • New SkillsFuture Workforce Development Grant
        • Simplification of application by combining existing WSG and SSG schemes.
        • Providing higher funding support (up to 70%) for job redesign activities.
      • Redesigned SkillsFuture Enterprise Credit
        • To operate like an online wallet for easier access to allow immediate offsetting of out-of-pocket costs for eligible workforce transformation initiatives and courses, rather than do so on a reimbursement basis.
        • Fresh S$10,000 credit for all companies with at least three resident employees (available in 2H 2026 and will last for 3 years).
        • Existing credit extended until the new one is ready.
      • NTUC’s Company Training Committees (CTCs)
        • Additional funding of around S$200 million for NTUC’s CTC grant to help more companies transform.
        • Expansion of CTC grant to support employer-led training that leads to formal qualifications or certifications.
    • Strengthening Support for Workers
      • SkillsFuture Jobseeker Support scheme
          • Starting in April 2025 to provide financial support of up to S$6,000 over six months for workers who lose their jobs.
      • Increased Career Matching Services
      • Expansion of Localised Job Matching to all CDCs across the island
      • Strengthened Support for Seniors
        • Extension of Senior Employment Credit (SEC) to end 2026.
        • MOM will convene a Tripartite Workgroup on Senior Employment.
      • Strengthened Support for Ex-Offenders
        • Extension of Uplifting Employment Credit to end 2028.

      Building a Sustainable City

      • Addressing the Climate Crisis
        • Singapore remains resolute in its commitment to decarbonisation and will work with international partners to drive progress.
        • New climate target submitted to UNFCCC: reducing emissions to 45-50 million tonnes of CO2 equivalent by 2035.
        • Long-term aim: achieving net zero emissions by 2050.
      • Greening and Enhancing our Transport Sector
        • Aiming for 100% cleaner energy vehicles by 2040.
        • Introducing Heavy Vehicle Zero Emissions Scheme and Electric Heavy Vehicle Charger Grant to accelerate clean heavy vehicle adoption.
        • Introducing Additional Flat Component (AFC) of road tax for electric heavy goods vehicles and buses.
        • Investing over S$60 billion this decade to expand and renew Singapore’s rail network.
        • Investing close to an additional S$1 billion more to increase and enhance Singapore’s bus services.
      • Securing a Climate-Resilient Future
        • Developing and implementing coastal protection plans
        • PUB will complete site-specific studies for the Greater Southern Waterfront and Changi this year; studies for Jurong Island and the Northwest Coast are also underway.
        • Top-up of the Coastal and Flood Protection Fund by S$5 billion.

Source:

Budget 2025 website: https://www.mof.gov.sg/singaporebudget/budget-speech/budget-statement

Note: More details will be shared by the Committee of Supply