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

Despite a challenging external backdrop, our economy has continued to strengthen and grow. Our economy grew by 3.6% in 2022 and the unemployment rate is below pre-pandemic levels, at 2.8% in December last year.

Budget 2023 introduces new and enhanced initiatives that will help your business grow as well as adapt to the changing economic climate.

In his Budget 2023 speech on Tuesday (Feb 14, 2023), Deputy Prime Minister and Minister for Finance, Mr. Lawrence Wong, mentioned that the economic competition will get stiffer in this new era where countries compete for power and influence, thus Singapore will have to adapt quickly to these changes, to survive and prosper in a troubled world.

Here is a round-up of what SMEs can expect.

Developing Local Enterprises

• Set aside $1 billion to provide customised support for promising local companies under Singapore Global Enterprises initiative
• Additional $150 million via SME Co-Investment Fund to invest in promising SMEs

Building Capabilities and Anchoring Quality Investments

• Top up $4 billion to National Productivity Fund and expand scope to support investment promotion

Nurturing and Sustaining Innovation

• Introduce Enterprise Innovation Scheme to support businesses’ innovation activities via enhanced tax deductions/allowances, with a cash conversion option

Dealing with Cost Pressures

• Extend Enterprise Financing Scheme enhancements till 31 Mar 2024 to facilitate access to credit:
  – 70% Government risk-share for trade loans
  – Enhanced maximum quantum for trade and working capital loans
  – Support for domestic construction projects via project loans
• Extend Energy Efficiency Grant till 31 Mar 2024 for SMEs in Food Services, Food Manufacturing, and Retail sectors to adopt energy-efficient equipment, given higher electricity prices

Integrate Training and Job Placement

• Pilot Jobs-Skills Integrators in Precision Engineering, Retail, and Wholesale Trade sectors to bring together key players to develop industry-relevant training and facilitate job matching

Enhance Employment Support

• Top up $2.4 billion to Progressive Wage Credit Scheme fund for lower-wage workers, and maintain higher Government co-funding share of eligible wage increases in 2023:
  – Wages up to $2,500: increase from 50% to 75%
  – Wages above $2,500 and up to $3,000:
  increase from 30% to 45%
• Extend Senior Employment Credit and Part-time Re-employment Grant for senior workers till 2025 to continue providing wage offsets, and encourage employers to offer flexible work arrangements and structured career planning
• Enhance Enabling Employment Credit to encourage employment of persons with disabilities
• Introduce Uplifting Employment Credit to encourage employment of ex-offenders

Useful Resources:

Budget 2023 website: https://www.mof.gov.sg/singaporebudget
Budget 2023 overview by Enterprise Singapore: https://www.enterprisesg.gov.sg/campaigns/budget-2023/budget-2023-overview

Note: More details on some of these schemes will be shared by the at the COS

Updated as at 15 Feb 2023

Budget 2021 – Overview

After an unprecedented year in which Singapore experienced its worst recession since independence, the global battle against COVID-19 remains far from over. The country’s GDP contracted by 5.4% in 2020. Its overall budget deficit last year was also the largest since independence, standing at $64.9 billion.

Budget 2021 introduces new measures, as well as enhances existing initiatives, to help your business deal with short-term challenges as you prepare for long-term growth.

In his Budget 2021 speech on Tuesday (Feb 16), Deputy Prime Minister and Finance Minister Heng Swee Keat announced the Singapore Government has a S$24 billion plan to help its firms and workers adapt to a post-COVID-19 world, and it includes raising grants and extending training initiatives.

Here is a round-up of what SMEs can expect.

Enterprise Development Grant (EDG)
As announced at Budget 2021, the enhanced maximum support level of up to 80% will be extended from 30 September 2021 to 31 March 2022.

The Enterprise Development Grant (EDG) helps Singapore companies grow and transform. This grant supports projects that help you upgrade your business, innovate, or venture overseas. The grant funds qualifying project costs namely third-party consultancy fees, software and equipment, and internal manpower cost.

Market Readiness Assistance (MRA) Grant
As announced at Budget 2021, the maximum support level of up to 80% will be extended for 6 months, until 31 March 2022. MRA will also be enhanced to include Trade Credit Insurance (TCI) as a supportable area under the overseas market set-up pillar with effect from 1 April 2021.

Small and medium enterprises (SMEs) will receive an international boost with the Market Readiness Assistance (MRA) grant to help take your business overseas.

Eligible SMEs will receive the following support:
– Up to 70% of eligible costs, capped at S$100,000 per company per new market* from 1 April 2020 to 31 March 2023 that covers:
– Overseas market promotion (capped at S$20,000)
– Overseas business development (capped at S$50,000)
– Overseas market set-up (capped at S$30,000)

Each application is limited to one activity in a single overseas market (e.g., market entry, or participation in a trade fair)

Productivity Solutions Grant (PSG)
Technology is not about fancy and expensive high-end solutions. You can kick-start your technology journey by taking simple steps to automate existing processes and improve productivity. The Productivity Solutions Grant (PSG) supports companies keen on adopting IT solutions and equipment to enhance business processes.

These solutions have been pre-scoped by various government agencies such as Enterprise Singapore, National Environmental Agency (NEA) and Singapore Tourism Board (STB).

As announced at Budget 2021, the enhanced maximum support level of up to 80% will be extended from 30 September 2021 to 31 March 2022.

The list of readily adoptable solutions can be found on GoBusiness Gov Assist. Applicants should consider their business needs to select the relevant and right-sized PSG support packages.

Senior Worker Early Adopter Grant (SWEAG)
The Senior Worker Early Adopter Grant (SWEAG) was introduced as part of the Senior Worker Support Package to provide businesses up to $250,000 and $125,000 respectively to implement key recommendations to support older workers. Supports businesses in raising their company-level retirement and reemployment age above the minimum statutory requirements.
From 16 Feb 2021, the grant will be streamlined to a single tier to benefit companies who increase their internal retirement and reemployment ages by three years or more. The minimum Retirement Age (RA) and Re-employment Age (REA) will be raised to 65 and 70 respectively by 2030. The first increases to 63 and 68 respectively will take effect from 1 July 2022. Companies will also be required to adopt the Tripartite Standard on Age-Friendly Workplace Practices to qualify for the grant.

Part-time Re-employment Grant (PTRG)
The Part-time Re-employment Grant will be adjusted to provide eligible companies with $2,500 for each senior worker aged 60 and above, capped at 50 workers and $125,000 per company. Employers are eligible when they commit to a re-employment policy where they would provide part-time re-employment opportunities to eligible senior workers who request for it. These arrangements benefit seniors who prefer lower work intensity and encourage them to stay in the workforce. The grants help firms adjust to the impending raises in retirement and re-employment ages in 2022.

Useful Resources:
Budget 2021 for businesses: Booklet
Find out more on the new and enhanced measures will help you transform your business, seize new opportunities, and emerge stronger.

Budget 2021 website
Learn more about all the different initiatives announced at Budget 2021.