Singapore’s Budget 2025 is built around a forward-thinking agenda—one that balances cost management, business growth, and workforce transformation. If you’re a business owner, this budget delivers targeted support to help you navigate rising costs, embrace innovation, and build a stronger workforce.
This isn’t just about short-term relief—it’s about setting businesses up for long-term success in a fast-changing economy. Here’s what you need to know.
1. Easing Cost Pressures for Businesses
We all know running a business isn’t getting any cheaper, and the government is stepping in with measures to help cushion rising costs.
Corporate Income Tax Rebate
- A 50% Corporate Income Tax rebate (capped at $40,000) for Year of Assessment 2025.
- A minimum rebate of $2,000 for businesses that had at least one local employee last year—ensuring even smaller companies benefit.
Enhanced Progressive Wage Credit Scheme (PWCS)
- The government is co-funding wage increases for lower-wage workers, raising support from 30% to 40% in 2025 and 15% to 20% in 2026.
- This makes it easier for businesses to offer competitive wages without shouldering the full burden.
2. Growth Through Innovation and Investment
Singapore’s future is built on innovation and high-value industries. If your business is in tech, manufacturing, or looking to scale, this is where you’ll want to pay attention.
$3 Billion Boost for National Productivity Fund
- More resources to attract high-quality investments and support business transformation.
$1 Billion in R&D Investments
- A new semiconductor R&D fabrication facility and enhanced biotech research infrastructure will fuel growth in deep-tech sectors.
Enterprise Compute Initiative ($150 Million)
- If your business is ready to leverage AI and cloud computing, this initiative partners enterprises with major cloud providers to enhance AI adoption and digital transformation.
$1 Billion Private Credit Growth Fund
- Designed to help high-growth local enterprises access alternative financing, so you’re not just dependent on bank loans.
More Incentives for Singapore-Listed Companies
- To reinvigorate the Singapore Stock Exchange (SGX), new tax incentives for fund managers and companies that list locally will make SGX a more attractive destination for raising capital.
3. Workforce Transformation & Upskilling
The reality is businesses can’t afford to stand still—technology is changing jobs fast, and companies that invest in their workforce will come out ahead.
SkillsFuture Workforce Development Grant
- A streamlined grant that combines multiple existing workforce schemes—making it easier to get funding for job redesign and skills training.
- Businesses can now receive up to 70% funding to redesign roles and equip employees with future-ready skills.
Redesigned SkillsFuture Enterprise Credit ($10,000 per Company)
- Employers get $10,000 in enterprise credits—but here’s the real win: it works like an online wallet, letting businesses offset training costs immediately instead of waiting for reimbursements.
- Available from the second half of 2026, but the current scheme has been extended until then.
Leadership Development for Singaporean Talent
- More funding for overseas work postings and leadership training programs, so businesses can develop Singaporean leaders with global exposure.
4. Infrastructure & Sustainability Investments
If you’re in logistics, tech, or manufacturing, infrastructure plays a big role in your business. The government is making long-term investments to keep Singapore competitive.
Expanding Key Infrastructure
- Tuas Port expansion and Changi Airport Terminal 5 remain top priorities.
- A $5 billion top-up for the Changi Airport Development Fund ensures continued growth in aviation and logistics sectors.
Energy & Sustainability Investments
- $5 billion Future Energy Fund to secure long-term access to clean energy—this includes electricity imports, hydrogen research, and even exploring nuclear energy.
- New Heavy Vehicle Zero Emissions Scheme—subsidies for companies transitioning to electric heavy vehicles.
5. Sector-Specific Growth & Opportunities
If your business operates in semiconductors, biotech, AI, or manufacturing, Singapore is doubling down on high-value industries to maintain its global edge.
Semiconductors & Advanced Manufacturing
- Singapore supplies 10% of the world’s chips—new investments will expand production and boost local suppliers.
Life Sciences & Biotech
- Singapore produces 80% of the world’s DNA chips—this budget strengthens pharmaceutical and biotech capabilities, making it a prime opportunity for businesses in the sector.
AI & Digital Transformation
- Government-backed initiatives will accelerate AI adoption across industries—businesses that embrace AI early will have a competitive advantage.
Final Thoughts: What This Means for Your Business
The key takeaway from Budget 2025? The government is committed to helping businesses stay competitive, innovative, and future-ready.
- If you’re facing cost pressures—leverage the Corporate Tax Rebate and Progressive Wage Credit Scheme.
- If you’re looking to scale—tap into the Private Credit Growth Fund and new enterprise grants.
- If you want to future-proof your workforce—take advantage of the SkillsFuture Enterprise Credit and Workforce Development Grant.
This is the time to think long-term. Invest in innovation, upskill your employees, and position your business for sustainable growth. The support is there—it’s up to businesses to take action and capitalize on it.
For infographics and details, you can read more on the MOF website.