4 areas Budget 2025 will likely prioritise

There will be focus on upskilling programmes amongst others.

Singapore’s Budget 2025 is expected to focus on job security and cost of living, economic growth, social cohesion, and sustainability to strengthen the economy amidst global uncertainties, according to RHB.

On job security and cost of living, Barnabas Gan, acting group Chief Economist & head of Market Research of RHB Bank, said the government is likely to enhance existing upskilling programmes, particularly for mid-career workers, whilst providing further financial relief for households managing rising expenses.  

A key focus will be the SkillsFuture programme, with potential enhancements to the SkillsFuture Level-Up Programme introduced in Budget 2024. 

The government may also refine the SkillsFuture Mid-Career Training Allowance, currently set at 50% of a worker's average income (capped at $3,000 per month for up to 24 months).

Adjustments could include increasing the cap or extending its duration, particularly for industries requiring longer training periods.  

Beyond employment measures, Budget 2025 is likely to address cost-of-living concerns, particularly for lower- and middle-income households. 

The government is expected to increase allocations for Community Development Council (CDC) vouchers, which provided $600 to Singaporean households in Budget 2024. Given rising utility costs, U-Save rebates for HDB households may also be raised, building on the $285 in rebates disbursed in January 2025.  

A special SG60 bonus, similar to the SG50 bonus given in 2015, could be introduced as part of the government’s broader support measures. Based on estimates, the total special transfer distribution may reach $4.0b.

Economic relevancy and resiliency

RHB also expects the government to expand initiatives that support digitalisation and automation, particularly for small and medium enterprises (SMEs) in priority sectors such as renewable energy, technology, electronics, and digital industries.

To improve investment attractiveness, tax incentives and regulatory enhancements are expected to be introduced.

The government is likely to introduce incentives for businesses investing in new technologies, helping SMEs adopt digital tools and automation solutions to stay competitive.

Social compact

RHB also foresees targeted support for vulnerable groups, including seniors and lower-income families, to address financial pressures and long-term social needs. 

Measures may include additional subsidies, enhanced financial assistance, and expanded social services to ensure these groups receive adequate support.  

For seniors, the Budget is likely to focus on healthcare affordability, retirement security, and caregiving support. 

The government is also expected to expand the Matched Retirement Savings Scheme and Silver Support Scheme, providing greater financial security for elderly Singaporeans with limited retirement savings. 

To address Singapore’s declining fertility rate, the Budget may introduce expanded subsidies for fertility treatments, including in-vitro fertilisation (IVF) and fertility preservation. 

Green and sustainable

To support businesses investing in renewable energy and carbon reduction initiatives, the government is likely to expand green financing schemes, RHB predicts. 

This could include tax incentives for financial institutions offering sustainable loans or dedicated funding mechanisms for companies adopting clean technologies.

Decarbonisation efforts are also expected to receive additional support through targeted grants. These grants may assist companies in adopting cleaner production methods, optimising energy use, or integrating renewable energy sources into operations. 

The upcoming Budget may also allocate resources for infrastructure investments in renewable energy, waste management, and sustainable agriculture, lowering financial barriers for businesses undertaking sustainability-focused projects. 

Outlook

The fiscal outlook suggests a cautious approach, balancing short-term financial assistance with long-term investments in economic competitiveness. 

Government revenue is expected to reach $115b in FY 2025, with tax collections remaining stable. 

Expenditures are projected to rise to $116.5b, driven by social programmes and business support measures.

Despite uncertainties, Singapore’s economic fundamentals remain strong, with trade and investment expected to drive growth. 

The government aims to maintain fiscal discipline whilst ensuring continued support for businesses and households.