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On February 18, 2025, Singapore’s Deputy Prime Minister and Minister for Finance, Lawrence Wong, unveiled the 2025 Budget under the theme “Moving Forward Together, Towards the Future.” This budget not only addresses global economic uncertainties but also provides comprehensive support for businesses, helping Singapore maintain its competitive edge in the years to come.

Strengthening Business Support to Drive Economic Growth

In response to global economic uncertainties and rising cost pressures, the Singapore government has introduced several key measures to help businesses maintain competitiveness, optimize cash flow, and expand onto the global stage.

1. Corporate Tax Rebates and Grants
   • Corporate Tax Rebates: Businesses will receive a 50% corporate income tax rebate. Additionally, active companies that employed at least one local employee last year will receive a cash grant of at least SGD 2,000, capped at SGD 40,000.
   • Personal Tax Rebates: Individuals will enjoy a 60% personal income tax rebate, capped at SGD 200.
2. Supporting Local Businesses in Global Expansion and Financing
   • Global Founder Programme: Attracts global entrepreneurs to establish and grow their businesses in Singapore.
   • Private Credit Growth Fund: A S$1 billion fund to provide financing for high-growth local enterprises.
   • Securities Market Reforms: The Monetary Authority of Singapore (MAS) will implement reforms, including tax incentives, to encourage companies to list and enhance the vibrancy of the capital markets.

Supporting Business Transformation and Skills Development

With the rapid pace of technological change and industrial upgrading, enhancing workforce capabilities has become a critical factor for business competitiveness. The government has rolled out a series of initiatives to help businesses optimize their human resources.

• Company Training Committee (CTC) Grants: An additional S$200 million will be allocated to expand the National Trades Union Congress (NTUC) CTC grant scheme, supporting employer-led training and business transformation.
• SkillsFuture Level-Up Programme:
  • Part-Time Training Allowance: Individuals aged 40 and above will receive a monthly allowance of S$300 to encourage continuous learning and career development (effective 2026).
  • Full-Time Training Allowance: Singaporeans aged 40 and above can receive up to S$72,000 in support for full-time training courses, with a maximum duration of 24 months (effective March 2025).
  • Enhanced Training Support Grant: A S$10,000 grant for businesses employing at least three local employees, valid for three years, to support staff training and business transformation (effective second half of 2026).
• Global Talent Development: The government will support businesses in sending Singaporean employees overseas for work and leadership training, nurturing future business leaders.

Investing in Technology and Innovation to Enhance Competitiveness

Technology and innovation are key drivers of Singapore’s economic growth. To help businesses enhance their technological capabilities, the government has introduced funding support and infrastructure development initiatives.

• AI and Semiconductor Investments: An additional S$3 billion will be added to the National Productivity Fund to drive enterprise technology upgrades and productivity improvements.
• Focus on Frontier Technologies: Significant investments in artificial intelligence, quantum computing, and semiconductors to strengthen Singapore’s position in the global tech supply chain.
• Semiconductor Industry Development: Singapore produces 10% of the world’s chips and one-fifth of semiconductor equipment. The government will invest approximately S$1 billion to establish new national semiconductor R&D and manufacturing facilities.
• Biotech Sector Upgrades: Singapore manufactures over 80% of the world’s DNA chips. The government will upgrade research infrastructure at One-North’s Biopolis and MedTech Hub to reinforce its leadership in life sciences.
• Enterprise Compute Initiative: A S$150 million initiative to support businesses in adopting customized AI solutions, driving operational efficiency and market competitiveness.

Investing in Sustainability for a Greener Future

To enhance Singapore’s ability to address global climate change and explore new pathways for green economic growth, the government is increasing investments in sustainability and promoting green transformation across sectors.

• Advancing Green Energy and Transportation:
  • Green Energy: S$5 billion will be allocated to the Future Energy Fund to drive clean energy innovation.
  • Transportation: S60billionwillbeinvestedoverthenextdecadetoexpandtheMRTnetwork,withanadditionalS60billionwillbeinvestedoverthenextdecadetoexpandtheMRTnetwork,withanadditionalS1 billion to improve bus services. By 2040, all vehicles will run on clean energy.
  • Aviation: S$5 billion will be invested in the development of Changi Airport’s Terminal 5, reinforcing its status as a global aviation hub.
• Carbon Emission Targets and Protective Measures: Singapore aims to reduce carbon emissions to 45-50 million tonnes by 2035 and achieve net-zero emissions by 2050. Measures to protect against rising sea levels will also be strengthened to ensure long-term national security.

Conclusion

The 2025 Budget provides comprehensive support for businesses, offering vast opportunities for growth. As Singapore approaches its 60th year of independence, these policies not only help businesses tackle immediate challenges but also lay a solid foundation for long-term development.

For businesses, leveraging these policy incentives to drive digital transformation and technological innovation will be key to success in the coming years. As a trusted partner, SIG Global is deeply rooted in Singapore and understands the opportunities and challenges businesses face in a changing market. We remain committed to providing professional corporate services, tax planning, accounting, and international expansion strategies to help businesses maximize policy benefits and achieve growth and global success.