Singapore Budget 2025 recommendations
Explore the four key themes from our Singapore Budget 2025 recommendations, jointly published with SBF.
In the ever-evolving landscape of global challenges and opportunities, the Singapore Budget 2025 stands as a testament to our nation’s resilience and forward-thinking vision. As we commemorate our 60th year of independence, we are reminded of the serendipity that has often guided our journey – transforming challenges into opportunities and turning aspirations into achievements. Budget 2025 lays out a visionary blueprint that will serve as the bedrock for the nation’s next six decades, including bold steps to explore the deployment of nuclear energy and strategic increase in government spending to reach 20% of GDP around 2030.
Our commentary, 'Act Now, Progress Together', delves into the pivotal announcements and strategic initiatives outlined in Budget 2025. It is structured around the three core pillars that resonate deeply with our national ethos and future aspirations.
As we navigate the complexities of the present and chart our course for the future, let us embrace the spirit of never giving up and seize the opportunities that lie ahead. We can act now and progress together towards a brighter, more inclusive and resilient tomorrow.
We hope you will enjoy reading our 2025 Budget Commentary and find it insightful.
Expanding horizons, positioning for growth
Budget 2025 introduced a series of strategic measures aimed at positioning the nation for sustained growth and simultaneously pushing our growth frontier. Initiatives such as the substantial top-up to the National Productivity Fund and the establishment of a Private Credit Growth Fund, are designed to enhance our competitive edge, support enterprise development, and drive innovation across various sectors.
The various tax measures announced are also pivotal components of this growth strategy. These include a 50% corporate income tax rebate effective for the Year of Assessment 2025, coupled with a cash grant to alleviate business costs, and a suite of tax incentives to encourage businesses to seek a listing in Singapore.
Further enhancements to the Enterprise Financing Scheme (EFS) and the introduction of a tax deduction for payments to holding companies or special purpose vehicles for the issuance of new shares under the employee equity-based remuneration scheme underscores the Government's commitment to foster a vibrant business ecosystem. The extension of the Land Intensification Allowance (LIA) scheme and the rationalisation of tax incentives for project and infrastructure finance reflect its strategic shift towards a more streamlined and supportive tax framework.
Additionally, measures to enhance and refine the various schemes around the research & development, insurance, financial sector, shipping and maritime sectors ensure continued support for the nation’s critical industries.
These comprehensive measures underscore Singapore’s proactive approach to navigating global uncertainties and seizing new opportunities, ensuring that our economy remains robust, innovative, and well-positioned for future growth.
Corporate income tax rebate
Employee Equity-Based Remuneration Schemes
Tax incentives to strengthen the development of Singapore's equities market
Upfront certainty of exemption of companies’ disposal gains
Investment in R&D and National Productivity Fund
Cost-sharing agreement for innovation activities
Enterprise Financing Scheme and Private Credit Growth Fund
Tax measures for the financial sector
Tax measures for Shipping Enterprises
Land Intensification Allowance
SkillsFuture Programmes
Other tax changes
Building climate resilience, together as one
In the face of escalating climate challenges, Budget 2025 outlines a comprehensive strategy and emphasises the importance of collective action and innovative solutions. One of the key initiatives is positioning Singapore as a world-class blended finance hub for energy transition. This aims to attract and mobilise private capital for sustainable energy projects, reinforcing our commitment to a greener economy.
As we navigate towards a more climate-impaired world, Singapore is also focusing on robust adaptation measures. These include developing new infrastructure to meet resource constraints and pioneering advancements in energy solutions. The introduction of the Additional Flat Component (AFC) of road tax for electric heavy goods vehicles and buses encourages the adoption of cleaner energy vehicles and also ensures that all vehicle types contribute fairly to road usage costs.
To further support these efforts, the Government has committed substantial funds to various initiatives such as the Future Energy Fund and the Coastal and Flood Protection Fund.
Together, these measures reflect Singapore’s proactive approach to addressing climate change. Our collective efforts will ensure that Singapore remains a sustainable and vibrant home for future generations.
Compassionate society, united as one family
In the spirit of fostering a compassionate society where every individual feels valued and supported, Budget 2025 introduces a suite of measures to enhance social equity and unity. This year’s Budget underscores the Government's continued commitment to uplifting lower-wage workers, supporting families and senior citizens, providing financial relief to Singaporeans to cushion the impact of rising cost of living, and celebrating the nation’s 60th year of independence. By enhancing the Progressive Wage Credit Scheme, extending the CPF Transition Offset for employers and rolling out the SG60 Package which includes personal income tax rebate and a slew of vouchers and credits, the Government aims to ensure that all Singaporeans can share in the nation’s progress and prosperity.
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Singapore Budget 2025 Commentary
Expanding horizons, positioning for growth
Building climate resilience, together as one
Compassionate society, united as one family
Discover what this year's Budget means for you and your business.