Singapore’s Budget 2025 focuses on economic resilience amidst global uncertainties with a record S$143.1 billion allocation. It emphasizes business support, workforce upskilling, innovation, market liquidity, and collaborative research initiatives.
Budget 2025 Overview
Singapore’s Budget 2025, presented by Prime Minister Lawrence Wong, aims to strengthen the nation’s economy amidst global challenges. With a record allocation of S$143.1 billion, up from S$134.2 billion in 2024, the government is focusing on supporting businesses, upskilling the workforce, and promoting innovation. Economic growth is expected to slow to between 1.0 and 3.0 percent in 2025, after a 4.4 percent increase in 2024.
Market Incentives and Collaboration
To boost Singapore’s stock market, new tax incentives have been introduced for fund managers investing heavily in local equities. This strategy seeks to attract more listings on the Singapore Exchange, enhancing market liquidity. Additionally, the Budget proposes a tax deduction for cost-sharing agreements, encouraging businesses to invest jointly in research and development. This approach fosters collaboration, sharing costs and benefits, and promotes technological advancements.
Workforce Development and Equity Incentives
To transform the workforce, the SkillsFuture Workforce Development Grant provides up to 70 percent funding for job redesign activities. This initiative encourages companies to innovate roles and processes, preparing the workforce for future challenges. Furthermore, a new tax deduction for equity-based remuneration incentivizes companies to offer share-based compensation, aligning employees’ goals with company performance and promoting a culture of ownership and long-term commitment.
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