BUDGET 2025: Business group voices support to Singapore’s cost relief measures

The group calls the measures ‘thoughtful and well-considered’.

The Singapore Business Federation commended the Budget 2025 measures, calling them thoughtful and well-considered because of how they take into account recommendations and feedback from the business community on how to support enterprise growth, workforce transformation, and strengthening of the enterprise ecosystem.

Kok Ping Soon, Chief Executive Officer of SBF, specifically commended the newly announced corporate income tax rebate of 50% which was identified as the most effective cost-management tool by 88% of respondents in the SBF’s National Business Survey 2024.

“The rebate will provide timely short-term relief. Measures such as the Progressive Wage Credit Scheme, and enhancements to the Senior Employment Credit will also help businesses with wage costs. This is crucial support, especially in mitigating the impact of rising business costs, amidst global uncertainties. Looking ahead, businesses must also continue to invest in productivity and workforce transformation to strengthen Singapore’s long-term economic resilience,” Kok said.

Kok also said the enhanced SkillsFuture Enterprise Credit (SFEC) and SkillsFuture Workforce Development Grant builds on the recommendations from the group’s Alliance for Action on Business Competitiveness.

“These are welcome moves to support a holistic approach to workforce and enterprise transformation. We particularly welcome the shift from a reimbursement model to a wallet-based structure to address a key challenge faced by SMEs. The government’s responsiveness in refining the scheme based on industry feedback is encouraging,” Kok said.

The group also highlighted the importance of financing to support growth and scale, and welcome initiatives to support access to alternative financing options such as private credit. Kok said they look forward to more details from the government in these areas.