Singapore Budget 2025 Enhanced support for businesses and households unveiled

19 Feb, 2025

Singapore Budget 2025 introduces enhanced support for businesses and households to tackle rising living costs. Prime Minister Lawrence Wong announced key measures, including SG$800 in consumption vouchers per household and additional benefits for citizens aged 21 and above. The budget also features a 60% personal income tax rebate capped at SG$200 and a 50% corporate tax rebate for businesses, with a minimum benefit of SG$2,000. The government aims to boost economic growth through salary co-funding for lower-wage workers and incentives for globalizing companies.

A significant highlight of the budget is the SG$1 billion Private Credit Growth Fund to expand financing options for businesses, encouraging more companies to list on the Singapore Stock Exchange. Wong also accepted recommendations from the Equities Review Group, introducing tax incentives for Singapore-based companies and fund managers who invest in local capital markets.

In the technology sector, the government is allocating SG$150 million for the Enterprise Compute Initiative, providing businesses with AI-powered analytics, cloud computing access, and expert consultancy. This move aligns with Singapore’s broader efforts to strengthen its competitiveness in global tech and sustainability markets.

Fiscal projections indicate a surplus of SG$6.4 billion for FY 2024, expected to rise to SG$6.8 billion in FY 2025. Strong corporate income tax collections have contributed to this positive outlook, despite increased government spending on healthcare, infrastructure, and Changi Airport’s new terminal. The budget balances social support with economic growth initiatives, ensuring Singapore remains an attractive global business hub.

Wong emphasized the need for sustained growth, targeting an annual GDP increase of 2%-3% over the next decade. With strategic investments in social support, technology, and business expansion, Budget 2025 reinforces Singapore’s long-term economic resilience.

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