LIVE UPDATES: Singapore Budget 2025

PM Wong says the 2025 Budget advances ForwardSG plans.

Singapore Business Review is tracking developments from Singapore’s 2025 budget statement live as they are announced by Prime Minister and Minister for Finance Lawrence Wong.

In a Facebook post, Wong said the 2025 Budget will be "a Budget for all Singaporeans."

"It will also be a Budget that involves all of you, and advances our #ForwardSG plans for a stronger and more united society," he wrote.

Budget 2025 will be the first that Wong delivers as Prime Minister.

The formal presentation of the budget kicks off at 3:30 pm today, 18 February. Follow us live!

RECAP: Singapore 2024 Budget

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3:14 PM

Prime Minister Lawrence Wong arrives at Parliament to deliver 2025 Budget.

3:31 PM

Wong delivers the budget for the financial year from 1 April 2025 to 31 March 2026.

ECONOMIC OUTLOOK

• Wong said Singapore's GDP is expected to grow by 1%-3% this year, with inflation averaging 1.5%-2.5%.

FISCAL OVERVIEW

• "We expect to keep our financial position roughly balanced until 2030."
• "We expect our spending to go up to 20% of GP by around 2030."
• Wong said FY24 revenue collections were better than expected, with corporate income tax being the single largest contributor to revenue.
• Wong expects to end FY24 with a surplus of $6.4b or 0.9% of GDP. By 2025, a similar fiscal position is expected with a surplus of $6.8b or 0.9% of GDP.

RISING COSTS

• The government will issue $800 worth of CDC vouchers for every Singaporean household. The first $500 will be disbursed in May and the remaining $300 in January 2026.
• Additional U-Save Rebates of up to $760 will be provided for eligible Singaporean HDB houses; to be given quarterly in FY2025.
• $600 in LifeSG credits will be issued to each Singaporean child aged 12 and below this year.
• The ex-gratia payment for pensioners will be raised to $390, whilst the monthly pension ceiling will increase to $1,3200.

REAL ESTATE

• More than 50,000 new flats will be launched over the next three years by the Ministry of National Development, in areas like Woodlands, Bayshore, and Mount Pleasant.
• The Housing and Development Board will launch 3,800 flats with a waiting time of under three years in 2025, making up 20% of the year’s BTO supply.

TAXES

• Singapore will introduce a 50% corporate income tax rebate for the Year of Assessment 2025, with a minimum benefit of $2,000 for active companies with at least one local employee in 2024. Total benefit to be capped at $40,000.

WAGES

• To enhance the Progressive Wage Credit Scheme, the government will raise co-funding levels for wage increases from 30% to 40% in 2025, and from 15% to 20% in 2026.

TECH AND INNOVATION

• “We are a key player in semiconductors, supplying more than 10% of chips and producing one-fifth of semiconductor equipment worldwide.” 
• DNA chips are driving breakthroughs in life sciences, with Singapore producing over 80% of the world’s supply, Wong reveals.
• Singapore will invest $1.5b to build a national semiconductor R&D fabrication facility, equipping researchers and industry partners with advanced tools to prototype and test new innovations.
• A $3b top-up has been announced for the National Productivity Fund.
• EDB to launch a global founder programme later this year.
• Singapore will allocate $150m for a new Enterprise Compute Initiative to support AI adoption among businesses. The initiative will connect enterprises with cloud service providers to access AI tools, computing resources, and expert consulting services.

INVESTMENTS

• Singapore has set aside over $1.8b in the last five years to drive enterprise growth via investment funds.
• “We will deploy some of our funds as patient capital.”
• Singapore unveils a $1b Private Credit Growth Fund to support high-growth local enterprises with increased financing options.

STOCK MARKET

• The government will roll out tax incentives for Singapore-based companies and fund managers that opt to list locally and expand their economic activities. Fund managers who make sustainable investments in Singapore-listed companies will also benefit from these incentives.

TRANSPORT

• The Changi Airport Development Fund will be topped up by $5b.
• Singapore aims for 8 in 10 households to be within a 10-minute walk of a train station.
  The government is committing $6b to upgrade the rail network, plus $1b for bus services through the Bus Connectivity Enhancement Programme.

ENERGY

• “By 2025, we expect that about one-third of our projected electricity demand can be met through electricity imports.”
• “Beyond imports, we also need to have our own domestic clean power.”
• Singapore is keeping a close watch on nuclear energy developers and has steadily strengthened its nuclear safety capabilities over the past decade.
• Singapore’s government will actively explore the potential deployment of nuclear power. Civil nuclear cooperation agreements have been signed with the US.
• Future Energy Fund topped up by $5b.

WORKFORCE

• All Singaporeans aged 40 and above will receive $4,000 in SkillsFuture credit. From March, individuals can apply for a training allowance of up to $3,000 per month for selected full-time courses, with up to 24 months of support, totaling $72,000 per worker.
• Workers in part-time training will receive a $300 monthly allowance to support their learning expenses. The program will launch in early 2026, with the Ministry of Education detailing the plan further during the Committee of Supply.
• The government will introduce an enhanced tier of support under the Workfare Skills Support Scheme for lower-wage workers when they turn 30. The Ministry of Education will provide more details at the Committee of Supply.
• A new SkillsFuture Workforce Development Grant will be introduced to consolidate existing schemes managed by Workforce Singapore and SkillsFuture Singapore. The grant will simplify the application process and offer funding support of up to 70% for job redesign activities.
• Singapore will revamp the SkillsFuture Enterprise Credit with a new design to better support employers in defraying out-of-pocket expenses for enterprise and workforce transformation. The updated scheme will introduce an online wallet system, where companies can track their available credit and use it immediately to offset eligible costs for workforce transformation and training courses, instead of waiting for reimbursement.
• The Redesign SkillsFuture Enterprise Credit will provide at least $10,000 to all companies with three or more resident employees. The credit will be accessible from the second half of 2026 and will be valid for three years.
• The existing SkillsFuture Enterprise Credit, originally set to expire in June this year, will be extended until the new credit is ready.
• NTUC has established over 2,700 Company Training Committees (CTCs), contributing to more than 400 transformation projects that have benefited over 7,000 workers with improved job prospects. The government will inject $200 million into NTUC’s CTC grant to support more companies in their transformation efforts and employer-led training.
• The SkillsFuture Jobseeker Support Scheme will start in April, providing financial support of up to $600 per month for up to six months. The government will also enhance career matching services.
• The Senior Employment Credit (SEC) will be extended by one year until the end of 2026. The government will also raise the qualifying age for the highest SEC wage support from 68 to 69 years old.
• The CPF contribution rates for those aged 55-65 will increase by 1.5 percentage points in 2026. The CPF transition offset for employers will also be extended for another year.
• The Uplifting Employment Credit will be extended until the end of 2028.
• The Enabling Employment Credit will be extended to 2028 to offset wages for persons with disabilities (PWDs).

EDUCATION

• The government will support the Singapore University of Social Sciences in developing a new city campus.
• The government will extend the Singapore University Trust by 10 years, until 31 March 2042.

SUSTAINABILITY

• The Heavy Vehicle Zero Emissions Scheme and the Electric Heavy Vehicle Charge Grant will provide incentives for the purchase of electric heavy vehicles and the co-funding of the charging infrastructure. The Ministry of Transport (MOT) will share more details at the Committee of Supply (COS).
• The additional flat component (AFC) of road tax for electric heavy goods vehicles will be set at $250 per year. The AFC for electric minibuses and larger buses will be $190 and $550 per year, respectively. It will be phased in over three years starting from January 2026 and will be implemented in full by January 2028.

CLIMATE RISKS

• Singapore to top up Coastal and Flood Protection Fund by $5b.
• The government will provide an additional $100 worth of climate vouchers to HDB households starting April 2025.

FAMILY SUPPORT

• The enhanced Fresh Start Housing Scheme will allow eligible families to receive a grant of $75,000, up from the previous $50,000, for a new standard 2-room flexi or standard 3-room flat on a shorter lease.
• The government will reduce full-day childcare fee caps to $610 for anchor operator centres and $50 for enterprise operator centres.

• Singapore to introduce the Large Families Scheme to support married couples aspiring to have three or more children.
  - The scheme includes an increase of $5,000 in the Child Development Account (CDA) First Step Grant for the third and subsequent children born from February 18 2025 onwards. CDA funds can be used to offset school and healthcare expenses for the child and their siblings.

  - It also includes a new $5,000 Large Family Medical Grant, which will be disbursed to the mother's medical account for the third and subsequent children born from February 18, 2025, onwards.

  - $1,000 of LifeSG credits will be disbursed annually to families for each of their third and subsequent children during the year the child turns one to six.

SILVER ECONOMY

• The government will extend the EASE programme for three years, up to 2028, for seniors living in private properties.
• A 5-year Matched MediSave Scheme will be introduced for eligible lower-income seniors aged 55 to 70, with dollar-for-dollar matching of up to $1,000 annually for five years. It will be available from 2026.
• The quantum for the Homecare Giving Grant has been raised to $600 per month, up from $400.

SG60 PACKAGE

• The government will disburse $600 to all Singaporeans aged 21 to 59, and $800 for seniors aged 60 and above, which can be used at all businesses that accept such vouchers. Disbursement will start in July.
• The SG Culture Pass will be introduced to encourage participation in arts and heritage activities. All Singaporeans aged 18 and above will receive $100 worth of credits, which can be used from September 2025 to the end of 2028.
• Hawker stalls and market vendors will get a one-time rental support of $600. The government will also allocate $1B to upgrade aging hawker centres and build new ones.
• The government will provide $100 in SG60 ActiveSG credits for all active members to enjoy sports with family and friends.
• The Cultural Matching Fund will receive a $100m top-up and will be extended for five years, until the end of FY2029. Additionally, a $270m top-up will be provided to enhance the fundraising programme.

5:12 PM

Wong ends his Budget speech.