Singapore budget 2025: More support for businesses and households to ease living costs
The Singapore Parliament building. Prime Minister Lawrence Wong noted in his 2025 budget that while the country’s economy grew by more than 4% in 2024, it will be difficult to achieve that level of growth on a sustained basis.
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Singapore has announced a slew of support measures for both households and businesses in 2025, including vouchers and tax breaks, in its first budget under Prime Minister Lawrence Wong.
Wong said that this comes amid concerns over rising costs, given the rise in global inflation following the Russia-Ukraine war and disruptions in energy, food and supply chains.
Wong announced more consumption vouchers and utility rebates for households.
Each household will receive 800 Singapore dollars ($596) in consumption vouchers over the course of 2025.
On the business front, Wong announced a 50% rebate for corporate income tax for companies, with a minimum of SG$2,000 and a cap of SG$40,000.
The government will also increase co-funding levels for companies who raise the salaries of lower wage workers.
While Wong said that these measures, along with those announced in previous budgets, will mitigate the impact of rising costs, he added that “the best way to adjust to higher prices is to grow the economy and increase productivity, so that Singaporeans can enjoy higher real incomes and better standards of living.”
Supporting businesses
In his speech, Wong said that the country will take “bold and decisive actions to advance our growth frontier.”
Noting that global economic competition is intensifying, he pointed out that “if we fail to stay competitive, we will be left behind.”
He noted that while the country’s economy grew by more than 4% in 2024, it will be difficult to achieve that level of growth on a sustained basis.
Wong added that if Singapore could secure an average of 2%-3% growth per annum over the next decade, “we will be able to create better jobs and opportunities, and improve standards of living for all Singaporeans.”
In light of that, Wong said, the government will extend support programs for companies that want to internationalize, as well as for mergers and acquisitions.
Singapore will also introduce a new SG$1 billion Private Credit Growth Fund to give companies more financing options, Wong said, attributing the decision to the emergence of a private credit market that offers “innovative financing solutions to companies.”
This is a developing story, please check back for updates.
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