Marketers, here are 4 takeaways from Budget 2025

Singapore prime minister and finance minister Lawrence Wong presented the 2025 budget at parliament today. 

"It 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. Let’s move onward together for a better tomorrow," Wong said in a Facebook post on Monday (16 February).

The budget outlines the steps Singapore must take in response to the everchanging global landscape. Wong highlighted Singapore's monumental efforts in reaching 60 years of independence and stressed that this year's budget was shaped together with all Singaporeans, for all Singaporeans. 

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With the rising tensions between international bodies, rapid advancements in industry sectors and environmental crisis such as climate change, situations are likely to get worse in the coming years, said the prime minister.

However, Wong noted that this is not the first time Singapore has faced pressures externally. 

Below, MARKETING-INTERACTIVE lays out some of the key takeaways from the Budget 2025 that businesses should focus on. 

1. Funding for companies to adopt AI

The government will be introducing a new SG$1 billion 'Private credit growth fund' to provide more financing options for high-growth local enterprises. This is in line with Singapore's goal to strengthen the enterprise ecosystem, including the launch of a 'Global founder programme' to attract global founders to start ventures in Singapore. 

Additionally, up to SG$150 million will be used for the 'Enterprise compute initiative' to help companies implement artificial intelligence (AI) in their work. As part of this initiative, enterprises will be partnered with cloud service providers for AI tools to help enterprises leverage the digital software. 

2. Upskilling workforce

As AI continues to evolve, Wong highlighted the importance of continuously upskilling Singapore's workforce to keep up with the changing landscape. The 'SkillsFuture level-up programme', announced in last year's budget, will be extended to cover part-time training, with a fixed allowance of SG$300 per month.

Additionally, the 'Workfare skills support scheme' will be enhanced from 2026 for those who wish to pursue long-term training. 

The government will also introduce a new 'SkillsFuture workforce development grant' to provide funding support for businesses to train its workforce. The 'SkillsFuture enterprise credit' will be redesigned for companies to receive SG$10,000 worth of credit. 

3. Aid for businesses amidst rising costs

Despite inflation easing from 2022 following the war in Ukraine, Wong noted that Singaporeans are still navigating the high price levels. To help with costs, the government will implement a 50% corporate income tax rebate in the year of assessment (YA) 2025, capped at SG$40,000. Companies that are not profitable will still be eligible for at least SG$2,000 in cash support, provided they have at least one local resident employee. 

Additionally, the co-funding levels of the Progressive Wage Credit Scheme (PWCS) will be raised to 40% in 2026 from 30% in 2025 to cut labour costs. 

4. Increased funding for research and development

Wong noted that Singapore does not operate at the same level as international competitors, however, the country can still excel, with it being home to the top technology companies. He added that to enhance technologies, the country must anchor more high-quality investments. 

To strengthen research and development, Wong stated that an additional SG$3 billion will be added into the National Productivity Fund. Additionally, another SG$1 billion will be invested into enhancing research and development semiconductor developments. 

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