On February 18, 2025, Prime Minister and Minister for Finance Lawrence Wong presented the Budget Statement for 2025 in Parliament, outlining the government’s plans to tackle economic and social challenges. The budget focuses on six key areas: managing cost pressures, advancing economic growth, equipping workers with lifelong skills, building a sustainable city, fostering a caring and inclusive society, and uniting the nation under a shared vision.
Here are the key takeaways from the announcement:
1. Support for Families and Seniors
To help citizens cope with rising living costs, the government has introduced direct support measures:
- Every Singaporean aged 21 and above will receive SG$600 (approximately US$450) in SG60 vouchers.
- Seniors aged 60 and above will receive an additional SG$200.
- A new incentive program for large families will support married couples with or planning to have three or more children.
- Monthly childcare fees at key preschool operators will be capped at SG$610, down from SG$640.
2. Boosting Businesses and Economic Growth
To strengthen business competitiveness and drive economic expansion, the government has announced several tax and support measures:
- 50% corporate income tax rebate for the Year of Assessment 2025, capped at SG$40,000.
- A minimum benefit of SG$2,000 for active companies with at least one local employee in 2024.
- Extension of support schemes for internationalization, as well as mergers and acquisitions.
3. Building a More Sustainable City
The government reaffirmed its commitment to sustainability and climate resilience through new funding and incentives:
- SG$5 billion top-up to the Coastal and Flood Protection Fund, aimed at safeguarding the country against rising sea levels and extreme weather events.
- Introduction of a new Heavy Vehicle Zero Emissions Scheme and an Electric Heavy Vehicle Charger Grant, designed to accelerate the adoption of clean heavy vehicles.
- $5 billion allocated to the airport expansion fund, including Changi’s T5, will provide the necessary resources to develop our aviation hub and reinforce Singapore’s position as a key gateway for travel and trade
The 2025 Budget reflects Singapore’s commitment to tackling economic and environmental challenges with targeted and practical measures, providing support to both citizens and businesses while steering the nation towards a more sustainable and inclusive future.
Source:
https://www.mof.gov.sg/singaporebudget
https://www.straitstimes.com/singapore/budget-2025-5b-added-to-fund-for-airport-expansion-projects-including-changi-airport-t5