The 2025 Singapore Budget Statement has been delivered by Prime Minister and Minister for Finance Lawrence Wong today (February 18).
If you missed it, not to worry, as we’ve gathered the key takeaways that entrepreneurs and startups need to know.
1. 50% corporate income tax rebate to be introduced in YA 2025
All active companies that employed at least one local employee last year will get a minimum benefit of S$2,000, with the total benefit for each company capped at S$40,000.
2. Co-funding levels for the PWCS will be increased
The government’s co-funding levels for wage increases under the Progressive Wage Credit Scheme will be raised to 40% from 30% in 2025 and to 20% from 15% in 2026.
3. EDB will launch a Global Founder Programme
The programme will tap into EDB’s close links with multinational firms and entrepreneurs and help Singapore-based enterprises to scale up.
4. Up to S$150 million will be invested into a new AI initiative
To help firms tailor AI solutions to their needs and integrate them into their business processes and systems, up to S$150 million will be put aside for a new Enterprise Compute Initiative.
Eligible enterprises will be partnered with major cloud service providers to access AI tools and computing power, as well as expert consultancy services under this initiative.
5. A new S$1 billion Private Credit Growth Fund will be launched
The initiative will provide more financing options for high-growth local enterprises.
6. S$3 billion top-up to National Productivity Fund
The national productivity fund will be topped up by S$3 billion to support measures for businesses to improve productivity and continue to educate and train workers.
7. Tax incentives to encourage bizs to list in Singapore
Singapore will introduce tax incentives for Singapore-based companies and fund managers that choose to list in Singapore.
A tax incentive will also be implemented for fund managers that invest substantially in Singapore-listed equities to promote more investment in Singapore’s capital markets.
8. Developments for Skillsfuture
PM Wong announced a new SkillsFuture Workforce Development Grant, which will be introduced to help companies restructure, transform and upgrade their workforce.
The new grant will simplify the application process for companies for schemes by Workforce Singapore and Skillsfuture Singapore—and will provide higher funding support of up to 70% for job redesign activities.
PM Wong also announced that the SkillsFuture Enterprise Credit will also be redesigned, where the revamped credit will operate “like an online wallet” as opposed to a reimbursement basis.
Those with at least three resident employees will get $10,000 in redesigned credit, which will be available in the second half of 2026. Current credits that are due to expire in June 2025, will be extended till then.
9. S$200 million additional funding for NTUC
Additional funding of around $200 million will be set aside for NTUC to start more committees.
The grant will also be expanded to support employer-led training that leads to formal qualifications or certifications.
- Read other articles we’ve written on Budget 2025 here.
Featured Image Credit: Richie Chan/ Shutterstock.com
