Singapore Budget 2025: Key Takeaways for Businesses

The Singapore Budget 2025 outlines the government’s fiscal strategy to boost economic resilience, drive innovation, and support business growth. From digitalisation support to green initiatives, it presents new opportunities for enterprises to strengthen their competitiveness and scale efficiently.

Explore below how the initiatives announced in Budget 2025 will shape business operations and open new growth opportunities in Singapore over the upcoming years.

1. Reducing Operational Costs for Businesses

The government has introduced targeted cost-relief measures to ease the impact of rising operational costs and support business sustainability.

Corporate tax relief and cash grants

As part of the Singapore government’s budget for 2025, businesses will receive a 50% corporate tax rebate for Year of Assessment 2025, offering timely relief as companies navigate rising operational costs. This measure aims to ease cash flow pressures while firms adapt to economic shifts.

Additionally, eligible companies with local employees will receive cash grants—all active companies that employed at least one local employee last year will receive a minimum benefit of S$2,000, with the total benefit capped at S$40,000 per company. 

Enhanced wage support schemes

The Progressive Wage Credit Scheme (PWCS) will now cover 40% of wage hikes in 2025 (up from 30%). This significant increase in support helps businesses manage the financial burden of rising wage costs by offsetting a substantial portion of these expenses. 

At the same time, it ensures that lower-wage workers receive meaningful salary improvements, thereby aiding in employee retention.

2. Supporting Business Growth and Expansion

New measures announced in Budget 2025 aim to drive business growth and support expansion into new markets.

Global founder programme

Singapore’s new Global Founder Programme aims to attract seasoned entrepreneurs—both globally and within Singapore—helping transform ambitious visions into leading global enterprises. 

To fuel growth, a S$1 billion private credit growth fund will finance high−potential local enterprises, while a S$200 million long-term investment fund will provide patient capital for ventures with extended development cycles. 

These initiatives strengthen Singapore’s position as a launchpad for innovation.

Private credit growth fund

Globally, the private credit market has emerged as a source of innovative financing solutions. However, few of these funds focus on Asian or, specifically, Singapore-based enterprises. 

Addressing this gap, the Singapore Budget 2025 will launch a new S$1 billion Private Credit Growth Fund. This initiative aims to broaden the financing landscape, offering more varied financial support to Singapore’s high-growth enterprises.

Tax incentives for SGX listings

New corporate tax incentives are being introduced to encourage more companies to list on the Singapore Exchange (SGX). Eligible businesses and registered trusts will enjoy a 20% corporate tax rebate for primary listings and 10% for secondary listings involving new share issuance—applicable for five years from the listing date.

These new measures, announced under Budget 2025, aim to ease listing costs, attract growth-focused companies, and enhance investor interest in the local market.

Extended grants for international expansion

Budget 2025 extends support for small and medium-sized enterprises (SMEs) in Singapore looking to expand internationally by maintaining the Market Readiness Assistance (MRA) grant with a S$100,000 cap per new market until March 2026. This grant helps cover costs associated with entering and promoting in new markets. 

Additionally, the Double Tax Deduction for Internationalisation scheme is extended until December 2030, allowing businesses to claim tax deductions on qualifying overseas expansion expenses.

3. Boosting Technology and Innovation

Backed by the government’s Budget 2025, new investments accelerate research, innovation, and tech adoption across key sectors.

National productivity fund top-up

The Singapore government’s S$3 billion investment into the National Productivity Fund is set to accelerate developments in AI, quantum computing, and other pioneering technologies.

R&D infrastructure investments

The government plans to invest approximately S$1 billion to boost research infrastructure, particularly targeting the biotech and semiconductor sectors. This strategic investment will include the creation of a new national semiconductor R&D fabrication facility, enhancing Singapore’s position as a leader in these essential high-tech fields.

Enterprise compute initiative for artificial intelligence (AI) adoption

Singapore’s Budget 2025 introduces S$150 million in funding to help businesses adopt AI solutions through partnerships with leading cloud platforms. This initiative reduces the cost and technical barriers for companies implementing AI-driven digital transformation.

4. Workforce Transformation and Talent Development

Empowering employees through skills and inclusive hiring is also a priority under the Budget 2025.

SkillsFuture enhancements

The new SkillsFuture Workforce Development Grant provides substantial support, covering up to 70% of expenses for companies aiming to redesign jobs to meet modern requirements. Simultaneously, the updated SkillsFuture Enterprise Credit, available from the second half of 2026, offers S$10,000 to help companies cover out-of-pocket costs for workforce transformation initiatives. 

Company training committee (CTC) grant

Budget 2025 allocates an additional S$200 million to the CTC Grant programme to further support workforce transformation. This expanded funding will enable more businesses to develop customised training initiatives, helping employees acquire future-ready skills while driving organisational growth.

Support for inclusive hiring

In Budget 2025, the Singapore government has announced the extension of the Senior Employment Credit (SEC) until December 2026 to assist employers with the costs of hiring senior workers. Additionally, the Uplifting Employment Credit (UEC) will continue until 2028, offering wage offsets to promote the hiring of ex-offenders. 

These measures are designed to enhance workforce diversity and provide more inclusive employment opportunities, integrating valuable but often overlooked groups into the labour market.

5. Building a Sustainable and Resilient Economy

As environmental priorities grow in Singapore, Budget 2025 supports businesses in embracing sustainability and future-proofing their operations.

Boosting clean energy investments

To further its clean energy initiatives, an additional SG$5 billion will be infused into the Future Energy Fund, initially established in 2024. Exploratory studies on the viability of nuclear energy in Singapore also mark a forward-looking step towards diversifying energy sources. 

These strategic moves are poised to catalyse growth in renewable energy and green technologies, signalling a pivotal shift in the country’s energy strategy that could influence future business investments and regulatory frameworks.

Strengthening climate resilience

The Coastal and Flood Protection Fund will receive an additional S$5 billion to enhance defences against rising sea levels and improve flood resilience. This investment is vital for businesses, strengthening infrastructure resilience and reducing the risk of climate-related disruptions.

Clean heavy vehicle initiatives

To boost the adoption of environmentally friendly transportation, the government is rolling out the Heavy Vehicle Zero Emissions Scheme and the Electric Heavy Vehicle Charger Grant. These programmes reduce the financial barriers to adopting electric heavy vehicles and enhance charging infrastructure, facilitating a greener shift for businesses. 

Moreover, an additional flat component of road tax will be introduced gradually over three years starting from 2026 for electric heavy goods vehicles and buses.

Leveraging Budget 2025 for Business Growth and Resilience

As outlined above, Singapore Budget 2025 introduces several strategic initiatives to strengthen business resilience and drive growth. Consider consulting a corporate service provider like Singapore Corporate Services (SCS) to navigate and leverage these business opportunities effectively.

From navigating funding opportunities to designing effective workforce transformation strategies, our corporate team is here to help you make the most of Budget 2025. Additionally, our professional tax advisors in Singapore offer expert guidance on tax planning, compliance, and efficiency to enhance your financial strategy.

Reach out today for personalised advice on leveraging key Budget 2025 measures.

Disclaimer: The information provided in this article is accurate as of the date of publication and intended for general informational purposes only. Please note that details of Budget 2025 are subject to change based on legislative updates and further announcements from relevant authorities. Therefore, verifying details with official government sources or consulting professional advisors for the latest updates and tailored guidance is recommended.

You may also be interested in...