The BGA Singapore Team Singapore Managing Director Nydia Ngiow, wrote an update to clients Singapore’s 2025 budget.

Context

  • Singapore’s Prime Minister and Finance Minister Lawrence Wong tabled the government’s 2025 budget in Parliament February 18, a day after leader of the opposition and Workers’ Party chief Pritam Singh was fined SGD 14,000 (US$10,500) for two charges of lying to a parliamentary committee. Themed “Onward Together for a Better Tomorrow,” Wong referred to this as “a budget for all Singaporeans” with the continuation of measures in line with his “Forward Singapore” initiative, ensuring that existing schemes are expanded to provide inclusive support across diverse segments of the population. 
  • This is one of the most generous budgets in Singapore’s history, leveraging its 60th anniversary of independence. It includes a series of vote-winning “goodies” in the lead-up to general elections which must be held no later than November 2025, with benefits coming through almost every month from April onwards. It notably also does not include any significant tax increases or other measures to raise revenue, affirming that this is indeed an election-year budget.

Significance

  • Against the backdrop of global uncertainty as geopolitical tensions increase, Wong announced another SGD 800 ($600) of vouchers for all Singaporean households to address cost of living pressures. SGD 500 ($370) will be given out in May, with the remaining SGD 300 ($230) in January 2026. He also announced more utility rebates for those living in public housing and credits for families with children, acknowledging that Singaporeans are still adjusting to new price realities and saying that his government “will continue to provide support for as long as needed, within [its] means.”
  • To support companies in managing business costs, Wong announced that companies will enjoy a a 50 percent corporate income tax rebate for year of assessment 2025 capped at SGD 40,000 ($30,000), with the minimum benefit of SGD 2,000 ($1,500) for active companies with at least one local employee in 2024. The government also increase its co-funding levels for the Progressive Wage Credit Scheme in 2025 and 2026 to further support employers who raise wages for lower-wage employees.

Implications

  • Budget 2025 did not shed any further light on when the general elections will take place. While it makes sense to leverage the goodwill arising from this generous budget and hold elections right as Singaporeans receive the first tranche of goodies in May, it may make more sense to do so only when most of the benefits will be distributed in July. Wong may also take his cue from the 2015 elections and hold elections in September following the National Day celebrations. With the Electoral Boundaries Review Committee only formed in January with no clear timeline of when it will complete its report, possible election dates remain anyone’s guess.
  • Companies can expect increases in expenditures to continue, especially as Wong looks to fund Forward Singapore initiatives that will require significant social spending. This will only increase further given Singapore’s aging population, the continued need for skills retraining and income support and quickly updating the island’s infrastructure. 

We will continue to keep you updated on developments in Singapore as they occur. If you have any comments or questions, please contact BGA Singapore Managing Director Nydia Ngiow at nngiow@bowergroupasia.com.

Best regards,

BGA Singapore Team

A small ginko leaf

Managing Director, Singapore

Nydia brings over a decade of experience working at the forefront of international affairs and international trade issues in the Asia-Pacific, with the majority of her career prior to BGA spent working for the Singapore government. Nydia most recently managed the China Program at the American National Standards Institute (ANSI) in Washington, D.C., where she brought together technical, business and policy leaders to find solutions to issues affecting U.S.-China trading relations to strengthen U.S. market access in China. She provided member organizations with coverage of policy and reform issues, and furthered ANSI’s relationships with counterpart organizations in China. Positioned in ... Read More