Key Highlights of Singapore Budget 2025
Corporate Income Tax Rebate
There will be a 50% corporate income tax rebate for YA 2025 to alleviate rising costs related to running a business, such as rental and labor. The total benefit that each company can get will be limited to S$40,000, the same quantum as that of YA 2024, and which is also the highest in the past 10 years. Companies should make the most of this rebate to make further investments to increase their competitiveness by using the new Enterprise Compute Initiative, for example, which will be shared below.
National Productivity Fund Top Up
This year’s Budget focuses on 3 key areas: Singapore’s enterprise ecosystem, technology and innovation, and infrastructure investments amid resource constraints. The government will continue to invest in the R&D sector with a S$3 billion top-up to the National Productivity Fund, along with other measures, such as a refresh for the public biosciences and medtech research infrastructure in the greater one-north area and the development of a new national semiconductor R&D fabrication facility.
Global Founder Programme
Singapore aims to be the place where cutting-edge ventures advance and grow to become noteworthy enterprises of the future. With an existing promising pipeline of such enterprises, such as AEM Holdings, the city-state is also providing greater support for enterprises to compete globally by extending their schemes for internationalisation and mergers and acquisitions (M&As). Additionally, since certain ventures are initiated by international companies or experienced entrepreneurs that Enterprise Development Singapore (EDB) has close ties to, the agency will execute a Global Founder Programme later in 2025 to encourage these founders to anchor and grow more new ventures in Singapore.
Extension to the Market Readiness Assistance (MRA) Grant
The MRA grant helps companies break into new markets overseas by defraying the costs of overseas market promotion, business development, and set-up. The enhanced grant cap of up to S$100,000 will be extended to 31 March 2026.
New Enterprise Compute Initiative
It is understood that beyond a certain stage, companies will need artificial intelligence (AI) solutions that are customised to their needs. Hence, the government will establish a new Enterprise Compute Initiative and set aside up to S$150 million for it. Eligible companies will be paired with leading cloud service providers to gain access to AI tools, computing power, and experienced consultancy services to help them leverage AI more effectively, closing the AI capability gap faced by SMEs while fostering innovation.
New S$1 Billion Private Credit Growth Fund
To kickstart their growth plans, companies need capital. Singapore already has a more vibrant financing ecosystem of private investors and government investments. It has also seen the rise of a private credit market that provides innovative financing solutions for businesses, but sees that few of these private credit funds focus on Asia. Therefore, it will introduce a new S$1 billion private credit growth fund to offer more financing options for high-potential local businesses.
New SkillsFuture Workforce Development Grant
Budget 2025 shines the spotlight on how jobs will continue to evolve and become different from what they are today. It underscores the need to put companies in the core of reskilling to support Singapore in speeding up lifelong employability amidst evolving needs. The government will introduce this new grant to combine existing schemes managed by Workforce Singapore and SkillsFuture Singapore, streamlining the process. It will also provide more funding support of up to 70% for job redesign activities.
Revamped SkillsFuture Enterprise Credit
The existing SkillsFuture Enterprise credit scheme helps employers cover out-of-pocket costs for workforce and enterprise transformation. It will be redesigned to make it more accessible and will work similar to an online wallet. This way, companies can easily check how much credit they have to instantly offset out-of-pocket costs for qualifying workforce transformation initiatives and courses instead of the current reimbursement basis.
Progressive Wage Credit Scheme
Businesses in Singapore have had to navigate rising cost pressures, but continue to stay committed to raising the wages of lower-wage workers. As the government maintains efforts to share this responsibility with employers, the Progressive Wage Credit scheme will be improved. The government’s co-funding levels will increase from 30% to 40% in 2025 and 15% to 20% in 2026.
Understand How Your Business Can Leverage Budget 2025 Initiatives
For some, the many schemes and measures under Budget 2025 can seem complicated and confusing. Seeking help from third-party professionals such as InCorp allows you to gain a clearer understanding of the schemes that apply to your business for full leverage of their benefits. Contact our professional team today to find out how to get started!
FAQs about Singapore Budget 2025
- Some benefits include the 50% corporate income tax rebate, new enterprise compute initiative, and SkillsFuture Workforce Development Grant.
- This strategic focus ensures that Singapore remains a leader in innovation and economic development in the digital age.
- InCorp can help you navigate the Singapore Budget’s benefits by providing expert guidance tailored to your business needs. For example, our tax team can help you maximize the 50% corporate income tax rebate for YA 2025.
