All eyes were filled with hope as PM Lawrence stood in front of the podium to deliver his Budget Speech of 2025. Just like the dual role that Mr. Lawrence successfully plays as the Prime Minister and Finance Minister of the State, the Singaporeans have been expecting future building while at the same time enhancing today’s core through living expense support from the 2025 budget.
While every Singaporean today celebrates SG 60 with $600 vouchers, businesses foresee benefits with 50% Corporate Income Tax Rebate and more.
Lets see how this budget balances unity and growth and justifies ‘Onward Together For a Better Tomorrow’.
Highlights of Singapore Budget 2025: Key Announcements and Insights
The Singapore Budget 2025, sets a clear course for the nation’s future amidst global uncertainties. The Budget focuses on strengthening the economy, supporting workers, fostering social unity, and ensuring fiscal prudence. Here are the key highlights and announcements from the speech:
Empowering Businesses for Growth and Success
The Budget has also focused on the business sector and supported them by allowing 50% Corporate Income Tax Rebate for assessment year 2025 to manage their business costs. Active companies with at least one local employee in 2024 will get a minimum benefit of $2000.
Other Key initiatives include:
- Co-funding levels for Progressive Wage Credit Scheme have been raised.
- Investment in technology and innovation program like National Productivity Fund and R&D infrastructure.
- Support schemes for internationalisation, M&A, investment in new Enterprise Compute Initiative, Private Credit Growth Fund and more.
Fiscal Prudence and Long-Term Planning
The Budget underscores the importance of sound fiscal management to ensure long-term sustainability:
- Surplus Projections:
- FY2024: $6.4 billion surplus (0.9% of GDP).
- FY2025: $6.8 billion surplus (0.9% of GDP).
- Corporate Income Tax collections have exceeded expectations, becoming the largest revenue source.
- Introduction of Domestic Top-Up Tax and multinational enterprises Top-Up Tax.
Encouraging Lifelong Learning And Workforce Transformation
Singapore will continue building a strong workforce through its several initiatives to enhance worker capabilities, create better job opportunities and improve long-term career prospects. Some key initiatives are:
- SkillsFuture Level-Up Programme for mid-career workers
- $300 monthly allowance from early 2026 for selected part-time courses
- All Singaporeans aged 40 and above will receive $4,000 in SkillsFuture credit
- A training allowance of up to $3,000 per month for selected full-time course
- Workfare Skills Support Scheme for lower-wage workers when they turn 30
- Support for Employers:
- Expansion of the Career Conversion Programme
- Enhanced support for employers to train workers in emerging industries
- Singapore will revamp the SkillsFuture Enterprise Credit with $10000 for workforce transformation.
- A new SkillsFuture Workforce Development Grant will simplify the application process and offer funding support of up to 70% for job redesign activities.
- Additional $200 million for NTUCs Company Training Committee Grant to help more Companies transform and upskill their workforce.
- Employment Support through CPF Transition Offset for aged workers, employment credits for hiring senior workers and ex-offenders.
Enhancing Social Support And Community Spirit
As the country celebrates its 60th Independence Day, Mr. Lawrence announces SG60 vouchers as a special support grant in addition to various other community initiatives, such as:
- SG60 Vouchers of $600 for all Singaporeans aged 21 to 59 and additional $200 for those aged 60 and above.
- An assurance package of $100 to $600 and GST voucher scheme for lower and middle-income Singaporeans
- 60% Personal Income Tax Rebate for AY 2026 for tax residents capped at $200.
- Active SG Credits, Cultural Pass Credits, extension of Cultural Matching Fund, enhanced Fund-Raising Programme for Singapore-registered charities and various other support initiatives.
These initiatives aim to cultivate a stronger sense of unity and collective responsibility.
Infrastructure Development And Sustainability
Recognizing the importance of future-ready infrastructure, Government has enhanced its ongoing projects and introduced new sustainability Programmes. The Changi Terminal development project will continue with a top-up of $5 billion. Additionally, a new Heavy Vehicle Zero Emissions Scheme and Electric Heavy Vehicle scheme has been introduced to accelerate adoption of clean heavy vehicles.
Sustainability goals have been well taken through investment in energy transition, Coastal and Flood Protection Project and climate vouchers for all Singaporean Private Property households.
Support for Families and the Elderly
The Government continues to support families and address challenges posed by an aging population:
- Healthcare Subsidies:
- $3 billion in MediSave top-ups to offset MediShield Life premium increases.
- Family-Oriented Initiatives:
- SG60 Vouchers for all citizens, with an option for the more privileged to donate their vouchers.
- $500 Child LifeSG credits for children 12 and below.
- $500 EduSave Account for children 13-20.
- New Large Family Scheme with $5000 increase in Child Development Account First Step Grant for each third and subsequent child and more.
- Fresh Start Housing Scheme to help more families with children living in public rental flats own a home,
- Initiatives for Aged: Higher long-term care subsidies, home care giving grant, support initiatives to empower disabled and many more
- For Disabled:
- Enabling Employment Credit to offset wages for hiring workers with disabilities
- Higher Subsidy rates for adult disability service, Matched Retirement Saving Scheme, etc.
Resilience and Unity: The Singapore Spirit
Throughout the speech, Minister Wong stressed the importance of unity and resilience. The story of a family spanning three generations exemplified Singapore’s collective spirit and perseverance. From the pioneer generation to today’s youth, the shared values of hard work and adaptability continue to drive the nation’s success.
Conclusion
Singapore Budget 2025 reflects a balanced approach to addressing immediate challenges while laying the foundation for long-term growth. By investing in people, fostering social cohesion, and maintaining fiscal discipline, Singapore aims to remain a stable, prosperous, and united nation in a complex global environment.
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Frequently Asked Questions
Singapore Budget 2025 focuses on:
- social support through various grants and schemes like ActiveSG Credit Top-Up, CDC Vouchers, MediSave, Large Family LifeSG Credits, Child LifeSG Credits, Culture Pass, Personal Income Tax Rebate, Fresh Start Housing Scheme, etc;
- supporting seniors through Matched MediSave Scheme, long-term care subsidies, home Caregiving grant, etc.;
- empowering disabled through Enabling Employment Credit, Adult Disability Services, Matched Retirement Saving Scheme, etc.;
- encouraging lifelong learning through SkillsFuture Level-Up Programme for mid-career individuals, training allowance, skill support and credit for workforce transformation and CPF transition offset and credit for employing senior workers;
- empowering businesses through 50% Corporate Income Tax Rebate, Progressive Wage Credit Scheme, top up to National Productivity Fund, other support schemes and grants, etc.;
- taking care of sustainability through investing in Coastal and Flood Protection Fund, new Heavy Vehicle Zero Emissions Scheme, climate Vouchers, etc.
The budget introduces enhanced training subsidies, salary support for job transitions, and initiatives to encourage continuous upskilling through SkillsFuture. There are also schemes to help mid-career workers and older employees stay competitive in the evolving job market.
The Assurance Package continues to cushion the impact of inflation and GST increases. Additional financial aid, rebates, and subsidies are provided to lower-income and middle-income households to help with daily expenses.
Yes, the budget includes enhancements to support young families, housing grants, and education subsidies. There are also measures to help parents with childcare expenses and elderly care support.
The government is investing more in healthcare, MediSave top-ups, and community-based eldercare services to ensure that seniors receive better support. There are also initiatives to enhance CPF contributions and retirement security.
The government continues to ensure fiscal prudence by maintaining a balanced budget and responsible spending. Revenue measures, including corporate tax adjustments, help sustain long-term investments in infrastructure, healthcare, and economic security
