SINGAPORE BUDGET 2025
FOREWORD
The Singapore Budget 2025, presented by the Prime Minister and Minister for Finance Mr. Lawerence Wong on 18 February 2025, marks a pivotal moment for Singapore as the nation celebrates 60 years of independence and progress. The theme for this year’s budget, “Onward Together for a Better Future Tomorrow”, reflects Singapore’s resilience and commitment to adapting to an increasingly complex economical and geopolitical environment. It stands as a blueprint for navigating challenges, seizing new opportunities by tackling sustainability concerns and climate change, and accelerating innovation to transform the workforce in preparation for a future that benefits all Singaporeans.
In an era defined by rising global tensions, economic uncertainties, and evolving technological landscape, Budget 2025 emphasizes the importance of solidarity and collective effort. It underscores Singapore’s intention to build a more sustainable, inclusive, and future-ready economy. The government’s approach is centered on reinforcing key areas such as supporting individuals and families through cost-of-living relief, safeguarding jobs in an ever-changing workforce, and enabling businesses to thrive amidst external challenges.
Among the many initiatives in Budget 2025, one of the most notable is the expansion of the Cost-of-Living Support Package, which is designed to directly address the financial pressure faced by Singaporeans, particularly vulnerable groups. This initiative includes targeted cash handouts and subsidies aimed at easing daily expenses.
Another critical area of focus is enhancing job security and creating new employment opportunities. Budget 2025 allocates significant resources to workforce transformation programs that emphasize upskilling and reskilling, preparing individuals for a future dominated by new technologies and evolving industries. The government will also invest in green technologies and sustainability initiatives, positioning Singapore as a leader in the global green economy. This includes supporting businesses with incentives for eco-friendly practices and promoting innovation in clean energy.
In Budget 2025, it was announced that up to S$150 million will be set aside for a new Enterprise Compute Initiative to help eligible enterprises leverage AI more efficiently in their transformation journey. Under this initiative, eligible enterprises can partner major cloud service providers to access AI tools, computing power, and expert consultancy services. For future generations, Budget 2025 lay out a clear vision for investing in education and research, with a focus on equipping Singaporeans with the skills required for a rapidly changing world.
In line with the nation’s long term economic objectives, Budget 2025 announced key corporate income tax changes. For companies, to provide support amidst rising cost of doing business, a 50% corporate income tax rebate will be granted in Year of Assessment 2025 with a minimum benefit of S$2,000 for eligible companies.
For individuals, as part of the package to recognize Singaporeans’ contributions, a one-off personal income tax rebate of 60% for Year of Assessment 2025 will be granted subject to a cap of S$200.
Singaporeans can also look forward to stronger support for social infrastructure, as the government commits to bolstering healthcare and housing systems, ensuring long-term stability for all citizens. These measures are designed to ensure that no one is left behind.
Together, the nation will continue to overcome obstacles, unlock new potentials, and make strides towards a brighter tomorrow.
Budget 2025 is a testament to the strength of Singapore’s collective spirit and its enduring commitment to progress, shared prosperity and unity. Let us move forward together, building on the foundation of past achievements while embracing present challenges and opportunities of the future.
Jack Lam
Managing Partner
20 February 2025
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© 2025. This publication is contributed by Acutus Tax Services Pte. Ltd. All rights reserved.
Click here to view the Singapore Budget 2025 publication.
