Good news to all entrepreneurs! One of the main features of the 2025 budget is the 50% corporate income tax rebate for the Year of Assessment 2025, capped at S$40,000 per company. This initiative provides substantial financial relief, especially to Small and Medium Sized Enterprises (SMEs) that are grappling with rising operational costs.

Key Benefits:

• Direct Cash Savings: Frees up capital that businesses can reinvest in operations or workforce development.
• Wider Business Impact: Applies across industries, ensuring that various sectors, from retail to manufacturing, benefit from this relief.

The government has launched a S$1.3 billion Enterprise Support Package to assist businesses in navigating challenges such as rising labor and rental costs. This package is designed to improve cash flow and incentivize long-term growth.

Highlights:

• Enhanced Enterprise Financing Scheme (EFS):
  • SME Working Capital Loan limit raised from S$300,000 to S$500,000.
  • Lower interest rates to encourage borrowing for business expansion.
    

• SkillsFuture Enterprise Credit Extension:
  • Extended until June 2025.
  • Companies can receive at least S$2,000 to offset training costs, encouraging digital transformation and workforce upskilling.

• Productivity Solutions Grant (PSG):

• • Continued co-funding for SMEs investing in automation and digital tools.

The government is investing over S$1 billion into innovation centric industries, focusing particularly on the semiconductor sector, which constitutes 11% of global market share.

Strategic Goals:

• Establish a cutting-edge R&D facility to attract top-tier talent and international partnerships.
• Support for Deep-Tech Startups through grants and accelerator programs.
• Digital Transformation Initiatives: Funding for businesses adopting AI, blockchain, and cloud technologies.

The Budget 2025 emphasizes equipping the Singaporean workforce with future ready skills to support evolving business needs.

Key Workforce Initiatives:

• Workforce Transformation Support:
  • Expanded funding for skills training in emerging sectors (e.g., FinTech, GreenTech).Incentives for businesses that retrain workers for high-demand roles.

• Strengthening Employment Support:

• • Programs targeting underemployed individuals and mid-career switchers.
  • Wage subsidies for businesses hiring older workers or persons with disabilities.

With concerns over rising rental and labor costs, the government has implemented measures aimed at reducing operational burdens.

Cost Mitigation Strategies:

• Rental Assistance Programs for SMEs in retail and F&B sectors.
• Progressive Wage Credit Scheme (PWCS):
  • Extended to support wage increases for lower-income workers.
• Energy Efficiency Grants to help businesses lower utility bills through green technologies.

To strengthen Singapore’s position as a global investment hub, the government has introduced new tax incentives and support mechanisms to attract both local and foreign investors.

Investment Highlights:

• Tax Exemptions for Fund Managers
  • Fund managers investing in Singapore listed equities can enjoy targeted tax breaks, designed to stimulate local market participation.
• Grants for ESG (Environmental, Social, and Governance) Investments
  • Financial incentives for companies adopting environmentally sustainable practices.
  • Additional grants for firms integrating social and governance frameworks into their operations.
    
• Support for Family Offices and Private Wealth Incentives
  • Tailored tax packages for family offices to attract more high-net-worth individuals to Singapore.
  • Streamlined regulatory processes for establishing private wealth funds.
    
• R&D and Innovation Grants:
  • New funding for foreign enterprises setting up regional headquarters or research facilities in Singapore.
  • Enhanced co-funding for collaborative R&D projects between local SMEs and multinational corporations.

Singapore’s 60th anniversary (SG60) is being marked with a range of initiatives designed to invigorate the retail, tourism, and hospitality sectors, creating opportunities for businesses across the board.

Business Opportunities:

• SG60 Celebration Grants
  • Funding support for F&B outlets, retail businesses, and event organizers hosting SG60-themed events.
  • Special grants for SMEs that develop innovative products or services aligned with SG60 celebrations.
    

• Enhanced Tourism Marketing Campaigns:
  • A global campaign to attract tourists, with partnerships between the Singapore Tourism Board and airlines, hotels, and travel agencies.
  • Incentives for tour operators creating SG60-themed itineraries.
    

• Special Permits and Licenses:
  • Streamlined application processes for event organizers planning SG60 festivals, concerts, and public gatherings.
• Boost for Hospitality and Retail Sectors:
  • Increased funding for infrastructure improvements in shopping districts and heritage sites.
  • Temporary tax rebates for hotels and hospitality venues participating in SG60 events.

The Singapore Budget 2025 offers a holistic approach to business growth, balancing immediate financial relief with long-term strategic investments. By focusing on tax rebates, enterprise funding, innovation, and workforce upskilling, the government aims to future proof Singapore’s economy and maintain its global competitiveness.

📥 Interested in exploring how these initiatives can benefit your business? Contact Lett for expert advice and personalized support.