BUDGET 2025: Big 4 breaks down four key moves

Industry experts from the PwC, Deloitte, KPMG, and EY shared their thoughts on Budget 2025.

Singapore’s Budget 2025 introduces a range of strategic measures designed to bolster businesses and drive sustainable growth, with a focus on financial relief, workforce transformation, and technological advancement.

Key initiatives include a corporate tax rebate, enhanced support for SMEs, and investments in AI and digital innovation, alongside efforts to improve workforce productivity and skills.

The Big Four accounting firms have shared positive reactions, highlighting how these measures will provide critical support to businesses navigating economic uncertainty, while also positioning Singapore for long-term competitiveness in the global digital economy.

Corporate Tax Rebate

Budget 2025 maintains a 50% corporate income tax rebate, capped at $40k to alleviate financial pressures on businesses, especially SMEs, and support their investments in long-term growth.

Tan Tay Lek, Tax Partner, PwC Singapore
We are glad that the government has heard the clarion call of businesses to help them with business costs and has provided a 50% corporate income tax rebate at the same quantum as last year. Companies should make the most of the corporate income tax rebate to make further investments to enhancing their competitiveness, for example, by tapping into the new Enterprise Compute Initiative.

Kexin Lim, Partner specialising in Tax and Entrepreneurial and Private Business, PwC Singapore
The extension of the 50% corporate income tax rebate and a minimum cash payout for businesses which employ Singaporeans acknowledge the diverse challenges faced by companies given the uncertain environment and could all benefit from the short-term support. This will be especially welcomed by Singapore SMEs pressured by rising business costs as they pivot towards mid-term productivity measures and new opportunities.

Desmond Teo, Asean EY Private Tax Leader
The proposed corporate income tax rebate will help to reduce the costs of doing business and alleviate cash flow crunch for companies amidst the economic uncertainties in the horizon. Even for active companies that are not profitable, they are not forgotten, as they will receive a minimum cash grant of $2,000.

Rohan SOLAPURKAR, Business Tax Leader, Deloitte Singapore
As expected, to provide support for businesses, the Prime Minister has decided to continue offering a corporate income tax (CIT) rebate for Year of Assessment (YA) 2025. The quantum is the same as that of YA 2024 – a 50% CIT rebate capped at $40,000, which one may recall, was the highest in the past 10 years. Smaller and loss-making companies will stand to benefit as well as they are entitled to a minimum cash payout of $2,000.

YAP Hsien Yew, Business Tax Partner, Deloitte Singapore
Prime Minister and Finance Minister Lawrence Wong's announcement of a 50% corporate income tax rebate for the 2025 year of assessment is a timely measure to support businesses facing higher rent and labour costs. This initiative, coupled with the $10,000 credit for companies to train workers, underscores the government's commitment to fostering a resilient and skilled workforce. Additionally, the provision of $800 in CDC vouchers and up to $760 in utilities rebates for Singaporean households reflects a comprehensive approach to easing the cost-of-living pressures. These targeted measures are crucial in helping both businesses and households to navigate the economic challenges ahead.

Progressive Wage Credit Scheme Enhancement

The scheme is enhanced with higher co-funding for wage increases, aiming to ease labor cost pressures for businesses while ensuring fairer wages for lower-income workers.

Ding Suk Peng, Workforce Tax Leader, PwC Singapore
The enhanced Progressive Wage Credit Scheme is a welcome move, reinforcing support for businesses while ensuring fairer wages for lower-income workers. While higher co-funding helps offset wage increase, businesses must take proactive steps – such as optimising workforce productivity, rethinking cost structures and leveraging technology to stay competitive. Tapping into initiatives like the new SkillsFuture Workforce Development Grant can further support upskilling and reskilling as well as workforce transformation. The key is to treat this as an opportunity to build a more resilient, future-ready business while balancing cost pressures with fair wages.

Chai Wai Fook (蔡伟富), Partner, Tax Services, Ernst & Young Solutions LLP
While inflation has eased, the overall costs of doing business remain high for enterprises. The increase in government co-funding for the Progressive Wage Credit scheme can help to tackle the rising labour cost pressures faced by businesses. On the corporate income tax front, the government continues to grant a 50% rebate with a maximum benefit of $40,000 for businesses in the Year of Assessment 2025. Small and medium local enterprises, which have tightened their belts to deal with cost pressures, are likely to benefit the most from these measures.

Technology and AI

The government has allocated $150m for the Enterprise Compute Initiative to support businesses, particularly SMEs, in adopting AI tools and technologies to drive productivity and innovation.

Luke Soon, Digital Assets Leader, PwC Singapore
The government’s commitment of $150m towards enterprise AI adoption is a timely and strategic move. As AI becomes a critical driver of business innovation, this initiative will empower enterprises—especially SMEs—to access the necessary compute power, AI tools, and expert guidance to stay competitive. By partnering with major cloud providers, Singapore is ensuring that businesses can harness AI effectively, not just as a tool, but as a transformative force for growth and efficiency.

For enterprises to thrive in today’s digital economy, investing in AI-powered analytics and digital tools is no longer optional—it’s essential. - Through initiatives like the Productivity Solutions Grant and SMEs Go Digital, the Government will continue to support businesses in adopting these technologies. As enterprises scale, AI will play a critical role in optimising business processes and driving sustainable growth

AI has evolved at an unprecedented pace—just a few years ago, ChatGPT didn’t exist, and today, AI models can generate high-quality content, write code, and even drive research breakthroughs. As AI continues to advance and new disruptive technologies emerge, their impact on industries will be profound and unpredictable. To ensure Singaporeans remain competitive and future-ready, the government is making significant investments in lifelong learning, with SkillsFuture as a key pillar of our social compact.

Charles Loh, Consulting Leader, PwC Singapore
With AI-powered digital transformation serving as a key thrust of business model reinvention, I am encouraged by the Singapore Government’s decisive move to formulate a $150m Enterprise Compute Initiative that will help organisations leverage the full potential of AI to build more sustainable businesses. As part of Singapore’s robust enterprise ecosystem, firms will be able to tap into a full suite of AI resources from a range of players, ensuring that no firm treads alone on their AI-led transformational journey.

Girish Sahajwalla, Southeast Asia Corporate Finance Leader, PwC Singapore
The budget’s focus on and new investment measures in innovation and technology will continue to drive M&A and financing activity in the hi-tech, advanced manufacturing and med-tech sectors in Singapore. In addition, the announced support to Singapore enterprises to drive their internationalisation and M&A will fuel outbound acquisition activity.

Additional capital deployed by the government in private equity and private credit will create more funding options for local enterprises. Efforts to enhance the SGX as a listing venue will provide local enterprises with a stronger capital-raising alternative alongside private equity and credit markets. Additionally, private equity firms will gain increased opportunities to create liquidity for their investments through SGX listings.

Jie Hong Liao, Partner specialising in Digital Tax, PwC Singapore
The Singapore government's proactive and comprehensive approach to cultivating an AI-ready ecosystem is commendable. Significant investments in infrastructure underscore a strategic commitment to supporting a sustainable and forward-looking AI ecosystem in Singapore. Prioritising job redesign and upskilling, together with initiatives to accelerate AI integration for businesses, will help Singaporeans and businesses remain competitive.

Manik Bhandari, EY Asean AI and Data Leader
The new Enterprise Compute Initiative with $150m funding will certainly help to create relevant AI solutions and business applications that will improve productivity and drive enterprise transformation through tripartite collaboration between enterprises, cloud service providers and consultancies

Yvaine GAN, Global Investment & Innovation Incentives Leader, Deloitte Singapore
The adoption of AI for companies in Singapore is part of the government’s strategy to drive economic competitiveness, productivity and innovation to enable long term economic growth. Beyond leveraging AI to automate routine tasks or optimise supply chains to boost productivity given Singapore’s manpower constraints, the adoption of AI by companies can also foster an ecosystem of AI capabilities, which can position Singapore as a global innovation hub for AI. This is also aligned with the Singapore government’s AI ambitions under the National AI Strategy 2.0.

Lee Bo Han (Mr), Partner, R&D and Incentives Advisory, KPMG in Singapore
The Budget's emphasis on accelerating digital transformation through AI is a commendable move that signals Singapore's drive to lead in global innovation. The Enterprise Compute Initiative not only reduces barriers and improves access to advanced AI technologies but also highlights the need to address unique challenges faced by SMEs. AI adoption for smaller enterprises is rarely a straightforward process; success hinges on providing customised solutions and assurance through trusted partners who align AI applications with SMEs’ specific growth journeys. This approach is critical to closing the AI capability gap, fostering innovation, and creating sustainable economic growth across all business scales.

Lyon Poh (Mr), Partner, Head of Corporate Transformation, KPMG in Singapore
The enhanced SkillsFuture Enterprise Credit scheme and the $150m top-up for the Enterprise Compute Scheme signal Singapore’s commitment to fostering an AI-ready business ecosystem. These initiatives are poised to reduce barriers such as investment costs and technical expertise gaps, empowering enterprises to experiment with AI and integrate it into their workflows. However, achieving widespread AI adoption will require more than financial incentives—it necessitates a fundamental shift in mindset among business leaders. Driving this cultural change is crucial for unlocking the full potential of AI, and Singapore’s leadership must champion a future-forward approach to ensure businesses gain the confidence and capability to undertake AI-driven transformations at scale.

James Wilson (Mr), Partner, Technology Consulting, KPMG in Singapore
The $150m Enterprise Compute Initiative marks a significant advancement in closing Singapore’s AI capability gap, enhancing productivity, and driving business growth across industries. By funding access to AI tools, cloud services, and expert consultancy, this initiative bolsters Singapore’s innovation ecosystem and solidifies its position as a global tech hub. Coupled with the Global Founders Programme, which anchors ventures in Singapore and facilitates critical skills transfer, these efforts will be instrumental in developing globally and regionally competitive AI talent. Together, these initiatives attract global investments, empower businesses, and drive Singapore’s economic growth in an increasingly digital world.

Chiu Wu Hong (Mr), Partner, Head of Private Enterprise, KPMG in Singapore
The $150m allocation for the Enterprise Compute Initiative in Budget 2025 is a significant boost for Singapore’s business landscape. By enhancing access to advanced AI and high-performance computing resources, this initiative empowers enterprises to harness cutting-edge technologies, drive innovation and enhance operational efficiency. This will further accelerate digital transformation and strengthen Singapore’s technological edge – benefitting the broader enterprise ecosystem. To fully capitalise on this new initiative, businesses should seek guidance from trade associations and chambers, relevant government agencies, or third-party professionals to navigate the grant application process effectively.  With expert guidance, businesses can strategically leverage this newly available support to position themselves for long-term success in an increasingly AI-driven economy.

Workforce and SME support

Budget 2025 introduces a $1b Private Credit Growth Fund to provide more financing options for SMEs and support their growth whilst expanding workforce development grants to enhance skills and drive transformation.

Martijn Schouten, Workforce Transformation Leader, PwC South East Asia Consulting
To thrive in today’s digital-first world of work, job redesign has emerged as a critical component for organisations to prime its workforce to improve their productivity. Hence, the new SkillsFuture Workforce Development Grant will support companies in upgrading their workforce through comprehensive job-redesign efforts, equipping employees with the necessary skills to excel in high-value and innovative roles."

Lennon Lee, Tax Leader, PwC Singapore
Patient capital is a much-needed lifeline for start-ups to explore and grow. The introduction of the new $1b Private Credit Growth Fund is a welcome move to allow aspiring and high-growth local enterprises that are cash-strapped to forge ahead with crucial funding. We hope that the fund will be designed to provide a full suite of financing options so that better support can be provided to cater to specific needs of enterprises at different stages of development.

Samir Bedi, EY Asean People Consulting Leader
Budget 2025 highlights that the jobs of the future will be different from those today. Companies are best placed to continuously define these new jobs as they transform. Thus, the focus on putting companies at the centre of reskilling is critical for the country to accelerate lifelong employability. The online wallet for enterprises will make credits accessible and encourage companies to focus on learning and reskilling.

WONG Meng Yew, Global Trade Advisory Leader, Deloitte Singapore and Southeast Asia 
The Market Readiness Assistance (MRA) Grant provides significant financial support for SMEs looking to expand into overseas markets, helping to defray the costs associated with overseas market promotion, business development and market set-up for up to $100,000 per market. Since 1 April 2020, the inclusion of Free Trade Agreement and trade compliance advisory in the market set-up pillar under the enhanced MRA grant demonstrates the government's commitment to helping SMEs navigate complex rules of international trade agreements and trade compliance requirements as they expand into new markets. Having the enhanced MRA grant extended to 31 March 2026 is good news for SMEs as it would provide businesses with a longer timeframe to plan and execute their international expansion strategies, while benefiting from government support.

LEE Tiong Heng, Global Investment & Innovation Incentives Leader, Deloitte Southeast Asia
It is not surprising that the government has doubled down on the SkillsFuture Enterprise credit scheme to support local companies in their workforce transformation and training efforts. The revamped credit claim process to an online wallet system where companies can directly apply the credit to immediately offset qualifying costs will help with reducing administrative burden and cashflow.

Chiu Wu Hong (Mr), Partner, Head of Private Enterprise, KPMG in Singapore
Introduction of the SkillsFuture Workforce Development Grant which is offering up to 90 per cent for reskilling workers and 70% for job redesign activities is a welcomed initiative for Singapore’s enterprises. It empowers companies to invest strategically in their workforce, fostering agility and proficiency in today’s dynamic market. By alleviating the financial burden associated with upskilling, businesses can more readily adopt innovative practices, enhance productivity and sharpen their competitive edge. Furthermore, this investment in human capital not only bolsters individual enterprises but also fortifies Singapore's overall economic resilience. Enterprises should leverage this grant, along with the SkillsFuture Enterprise Credit and NTUC’s Company Training Committee grant, to drive meaningful transformation.

Barbara Kinle (Ms), Partner, Personal Tax & Global Mobility Services, Tax, KPMG in Singapore 
Budget 2025 includes additional initiatives to help Singaporeans upskill and stay competitive amid a rapidly changing labour market. It also provides support for companies to restructure, transform and upgrade their workforce. This is alongside support provided through other Government schemes to nurture Singaporean leadership talent.