To The Moon

Budget 2025 tackled cost pressures facing households and businesses, while laying out long-term plans to spur growth, help vulnerable segments of society and support future infrastructure.

Here are nine key announcements by Finance Minister Lawrence Wong on Tuesday (Feb 18), in his first Budget speech as prime minister.

1. Tackling cost-of-living concerns

Inflation may have eased from the highs of 2022, yet Singaporeans are still adjusting to higher price levels, noted PM Wong.

To cushion the impact, all Singaporean households will receive an extra S$800 in Community Development Council (CDC) vouchers, to be used at participating supermarkets, heartland merchants and hawkers.

Eligible households will get additional U-Save rebates for utilities, while families with children will receive S$500 in LifeSG credits per child aged 12 and below.

2. Helping businesses with rising costs

Businesses will also get help for their cost challenges.

These include a 50 per cent corporate income tax rebate, capped at S$40,000, for the Year of Assessment (YA) 2025. Companies that are not profitable will still get at least S$2,000 in cash support, so long as they had at least one local employee last year.

To defray labour costs, the Progressive Wage Credit scheme’s co-funding levels will be raised to 40 per cent, from 30 per cent in 2025 – and to 20 per cent in 2026, from 15 per cent before.

3. SG60 goodies for all Singaporeans

To share the benefits of Singapore’s progress, PM Wong announced a new SG60 package, with three components.

First, Singaporeans aged 21 and above will get a one-off S$600 in SG60 vouchers, with those 60 and older getting another S$200. Similar to CDC vouchers, half of the sum can be spent at supermarkets, and the rest at heartland merchants and hawkers.

Second, individuals will get a 60 per cent personal income tax rebate, capped at S$200, for YA2025.

Third, all Singaporean babies born this year will receive an SG60 Baby Gift, with details to come at the Prime Minister’s Office Committee of Supply debate.

4. S$4 billion for research and development

As global competition intensifies, Singapore must redouble efforts to stay competitive and dynamic, said PM Wong.

To strengthen research and development (R&D), an additional S$3 billion will be injected into the National Productivity Fund.

Another S$1 billion will be invested into enhancing R&D infrastructure. This includes a new national semiconductor R&D fabrication facility for prototyping and testing innovations, as well as a refresh of biosciences and medtech research infrastructure in the one-north area.

5. S$1 billion private capital fund for high-growth firms

A new S$1 billion Private Credit Fund will give high-growth local companies more financing options.

This is part of several moves to strengthen the “enterprise ecosystem”, including a Global Founder Programme to get global founders to start ventures here.

Separately, up to S$150 million will be set aside under the Enterprise Compute Initiative to help companies adopt artificial intelligence.

Existing support schemes for internationalisation and for mergers and acquisitions will also be extended.

5. Tax incentives to rejuvenate the local bourse

The Monetary Authority of Singapore equities market review group has made recommendations to strengthen the attractiveness of the local stock market.

PM Wong accepted the group’s recommendations to introduce tax incentives for Singapore-based companies and fund managers that list on the Singapore Exchange.

Tax incentives will also be rolled out for fund managers that “invest substantially” in Singapore-listed equities. More details will be shared by the review group soon, said PM Wong.

6. Fresh injections to support energy, air infrastructure

Singapore’s growth plans must also be supported by world-class infrastructure, said PM Wong.

The Changi Airport Development Fund will be topped up by S$5 billion. The government will also provide a guarantee to Changi Airport Group to lower borrowing costs needed to develop Terminal 5 and supporting infrastructure.

To meet Singapore’s growing energy needs, a fresh S$5 billion will be injected into the Future Energy Fund.

7. Helping workers upskill

In response to feedback, the SkillsFuture Level-Up Programme – announced in Budget 2024 – will be extended to cover part-time training, with a fixed monthly allowance of S$300.

For lower-wage workers aged 30 and above, Workfare Skills Support will be enhanced from 2026 for those who pursue long-term training.

Employers will also get help to train workers. A new SkillsFuture Workforce Development Grant streamlines existing schemes and will provide higher funding support of 70 per cent for job redesign.

The SkillsFuture Enterprise Credit will also be redesigned, with a fresh S$10,000 for eligible companies.

8. New Large Families Scheme for those with three or more children

A Large Families Scheme will support families with three or more children.

This includes a S$5,000 top-up to the Child Development Account First Step Grant for each third and subsequent child born from Feb 18, to be used for preschool and healthcare expenses.

Mothers will also receive a S$5,000 Large Family Medisave Grant for each third and subsequent child born from Feb 18, which can be used to offset pregnancy and delivery costs.

Lastly, families will get S$1,000 a year in LifeSG credits for each of their third and subsequent children, until the child is six years old. This can be used to defray a wide range of household expenses, said PM Wong.