The Singapore 2025 Budget was unveiled by Prime Minister and Minister for Finance, Mr Lawrence Wong, on 18 February 2025. It represents a pivotal step in addressing the nation’s evolving economic, social, and environmental priorities.
With a focus on fostering long-term growth, promoting sustainability, and supporting an inclusive society, the budget outlines key strategies to strengthen Singapore’s resilience in a rapidly changing global landscape.
This blog will provide a targeted look at the budget’s highlights for businesses, its implications for various sectors, and how it aligns with the nation’s vision for a prosperous and sustainable future.
Key Highlights of Singapore Budget 2025
- 50% corporate income tax rebate for the Year of Assessment 2025
- S$3 billion top up to the National Productivity Fund to support R&D and innovation
- New upcoming Global Founder Programme
- New S$150 million Enterprise Compute Initiative to support AI adoption
- New S$1 billion Private Credit Growth Fund
- New SkillsFuture Workforce Development Grant to support employment and hiring
- Redesigned SkillsFuture Enterprise Credit to make it more efficient and accessible
Corporate Income Tax Rebate
There will be a 50% corporate income tax rebate for YA 2025 to alleviate rising costs related to running a business, such as rental and labour. As the government recognises that not all companies will be profitable, it will provide every active business that employed a minimum of 1 active employee in 2024 with at least a S$2,000 benefit to ensure that everyone can gain from the rebate.
The total benefit that each company can get will be limited to S$40,000, the same quantum as that of YA 2024, and which is also the highest in the past 10 years. Companies should make the most of this rebate to make further investments to increasing their competitiveness by using the new Enterprise Compute Initiative, for example, which will be shared below.
National Productivity Fund Top Up
This year’s Budget focuses on 3 key areas:
- Singapore’s enterprise ecosystem
- Technology and innovation
- Infrastructure investments amid resource constraints
New ideas, innovation, and technological progress are seen as growth drivers for Singapore to produce high-value solutions amidst intensifying global economic competition and a need to stay ever-competitive and unique.
The Lion City is home to local technology giants such as Grab and Razer, as well as some of the world’s leading technology companies like Amazon Web Services and Ant Group.
In order to boost our technology and innovation capabilities, we see the need to secure more high-quality investments, with attempts such as BEPS 2.0 made to skew the playing field towards governments’ favour.
However, there is still a need for governments to attract investments due to the sizeable leverage and options that MNCs have, hence the need to set aside sufficient resources to enhance our competitive strengths.
In light of this, Singapore will continue to invest in the R&D sector with a S$3 billion top-up to the National Productivity Fund, along with other measures, such as:
- A refresh for the public biosciences and medtech research infrastructure in the greater one-north area
- The development of a new national semiconductor R&D fabrication facility
These developments are expected to cost S$1 billion.
Global Founder Programme
Singapore aims to be the place where cutting-edge ventures advance and grow to become noteworthy enterprises of the future. With an existing promising pipeline of such enterprises, such as AEM Holdings, the city-state is also providing greater support for enterprises to compete globally by extending their schemes for internationalisation and mergers and acquisitions (M&As).
Additionally, since certain ventures are initiated by international companies or experienced entrepreneurs that Enterprise Development Singapore (EDB) has close ties to, the agency will execute a Global Founder Programme later in 2025 to encourage these founders to anchor and grow more new ventures in Singapore.
Extension to the Market Readiness Assistance (MRA) Grant
The MRA grant helps companies break into new markets overseas by defraying the costs of overseas market promotion, business development, and set-up. The enhanced grant cap of up to S$100,000 will be extended to 31 March 2026.
New Enterprise Compute Initiative
It is understood that beyond a certain stage, companies will need artificial intelligence (AI) solutions that are customised to their needs. Hence, the government will establish a new Enterprise Compute Initiative and set aside up to S$150 million for it.
Eligible companies will be paired with leading cloud service providers to gain access to AI tools, computing power, and experienced consultancy services to help them leverage AI more effectively, closing the AI capability gap faced by SMEs while fostering innovation.
In turn, this will also further accelerate Singapore’s digital transformation and reinforce its technological edge, a boon for the wider enterprise ecosystem. Companies should tap into expert guidance to leverage this support strategically and position themselves for long-term success.
New S$1 Billion Private Credit Growth Fund
To kickstart their growth plans, companies need capital. Singapore already has a more vibrant financing ecosystem of private investors and government investments. It has also seen the rise of a private credit market that provides innovative financing solutions for businesses, but sees that few of these private credit funds focus on Asia.
Therefore, it will introduce a new S$1 billion private credit growth fund to offer more financing options for high-potential local businesses.
New SkillsFuture Workforce Development Grant
Budget 2025 shines the spotlight on how jobs will continue to evolve and become different from what they are today. It underscores the need to put companies in the core of reskilling to support Singapore in speeding up lifelong employability amidst evolving needs.
The government will introduce this new grant to combine existing schemes managed by Workforce Singapore and SkillsFuture Singapore, streamlining the process. It will also provide more funding support of up to 70% for job redesign activities.
This initiative is expected to be welcomed by businesses, enabling them to invest strategically in the Singapore workforce to build proficiency and flexibility. Reducing the financial burden linked to upskilling workers can encourage companies to implement innovative practices more readily, boost productivity and competitiveness.
Revamped SkillsFuture Enterprise Credit
The existing SkillsFuture Enterprise credit scheme helps employers cover out-of-pocket costs for workforce and enterprise transformation. It will be redesigned to make it more accessible and will work similar to an online wallet.
This way, companies can easily check how much credit they have to instantly offset out-of-pocket costs for qualifying workforce transformation initiatives and courses instead of the current reimbursement basis.
Companies with at least 3 resident employees can get S$10,000 in the revamped SkillsFuture Enterprise credit in the second half of 2026.
Progressive Wage Credit Scheme
Businesses in Singapore have had to navigate rising cost pressures, but continue to stay committed to raising the wages of lower-wage workers. As the government maintains efforts to share this responsibility with employers, the Progressive Wage Credit scheme will be improved.
The government’s co-funding levels will increase from 30% to 40% in 2025 and 15% to 20% in 2026.
Understand How Your Business Can Leverage Budget 2025 Initiatives
For some, the many schemes and measures under Budget 2025 can seem complicated and confusing. Seeking help from third-party professionals such as InCorp allows you to gain a clearer understanding of the schemes that apply to your business for full leverage of their benefits.
Contact our professional team today to find out how to get started!
FAQs about Singapore Budget 2025
What are some Singapore Budget 2025 benefits for companies?
- Some benefits include the 50% corporate income tax rebate, new enterprise compute initiative, and SkillsFuture Workforce Development Grant.
Why is the Singapore government focusing on tech and AI to support businesses and the economy?
- This strategic focus ensures that Singapore remains a leader in innovation and economic development in the digital age.
How can InCorp help me make sense of the budget’s benefits?
- InCorp can help you navigate the Singapore Budget's benefits by providing expert guidance tailored to your business needs. For example, our tax team can help you maximise the 50% corporate income tax rebate for YA 2025.
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