Singapore’s Budget 2025 sets the stage for economic growth, business resilience, and workforce transformation, offering a range of measures to support Small and Medium Enterprises (SMEs). With a focus on cost management, technology adoption, and workforce upskilling, this budget ensures that SMEs can remain competitive in a dynamic global landscape.
1. Managing Business Costs
- Corporate Income Tax Rebate: SMEs will receive a 50% tax rebate, capped at $40,000, helping to ease financial burdens.
- Minimum Tax Benefit for SMEs: Active companies with at least one local employee in 2024 will receive a minimum benefit of $2,000.
- Progressive Wage Credit Scheme (PWCS): Co-funding levels for PWCS will be raised in 2025 and 2026, ensuring businesses can support fair wages while managing cost increases.
2. Supporting Business Growth and Transformation
- Enterprise Compute Initiative: SMEs will benefit from up to $150 million allocated to enhance computing capabilities for businesses, particularly in AI and digital solutions.
- Private Credit Growth Fund: $1 billion will be injected into private credit markets, improving SME access to alternative financing.
- Mergers and Acquisitions (M&A) Support: The government will extend support schemes to help SMEs scale up through internationalization and M&A activities.
3. Encouraging Technology and Innovation
- National Productivity Fund Boost: An additional $3 billion will be added to the fund, ensuring continued support for productivity-enhancing solutions for SMEs.
- Investment in R&D Infrastructure: A $1 billion allocation will support research, innovation, and technological advancements that can benefit SMEs across industries.
4. Workforce Development and Skills Enhancement
- SkillsFuture Enterprise Credit: Eligible SMEs will receive $10,000 from the second half of 2026 to offset workforce transformation costs.
- SkillsFuture Workforce Development Grant: Up to 70% funding support will be available for job redesign and workforce restructuring efforts.
- NTUC’s Company Training Committee Grant: An additional $200 million will help companies train and upskill their workers to meet industry demands.
- Senior Employment Support: The Senior Employment Credit and CPF Transition Offset will be extended, making it more cost-effective to hire and retain senior workers.
5. Infrastructure Investments to Strengthen Business Ecosystem
- Changi Airport Development Fund: A $5 billion top-up ensures Singapore’s global connectivity, benefiting SMEs in logistics, trade, and tourism.
- Future Energy Fund: Another $5 billion will be injected to expand Singapore’s clean energy capabilities, creating new opportunities for SMEs in the green sector.
6. Sustainability and Green Transition Support
- Climate Vouchers: All businesses can benefit indirectly from consumer-driven sustainability incentives such as $400 Climate Vouchers for households to adopt energy-efficient solutions.
- Heavy Vehicle Zero Emissions Scheme: SMEs in logistics and transport will have access to new incentives for cleaner and more sustainable fleet transitions.
Conclusion
Budget 2025 is a forward-looking package that balances immediate cost relief with long-term growth strategies for SMEs. Whether through tax incentives, financial support, or workforce upskilling, SMEs have numerous opportunities to leverage government support for growth and transformation.
At Iconomy Corporate Consultancy, we help businesses navigate these schemes, ensuring that SMEs maximize their benefits while positioning themselves for sustainable success. Contact us today to explore how these measures can work for your business!
