The Singapore Business Federation (SBF) has welcomed Budget 2025, highlighting its balance between addressing immediate cost pressures and supporting long-term business transformation. The measures introduced in the Budget reflect recommendations from the business community and demonstrate the government’s commitment to co-developing solutions that enhance enterprise resilience and competitiveness.
Measures to ease cost pressures
One of the key announcements in Budget 2025 is a 50% corporate income tax rebate, which aims to provide immediate relief to businesses facing rising costs. According to SBF’s National Business Survey 2024, 88% of respondents identified this rebate as the most effective way to manage costs.
SBF Chief Executive Officer Kok Ping Soon said, “Following from last year’s Budget announcements, the newly announced corporate income tax rebate of 50% will provide immediate relief to businesses facing cost pressures. This key measure 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.”
In addition to tax relief, the Budget includes continued support for wage costs through the Progressive Wage Credit Scheme and enhancements to the Senior Employment Credit. These measures are expected to help businesses manage workforce expenses, particularly in an uncertain global economic environment. Mr Kok emphasised that while these initiatives provide short-term relief, businesses must also invest in productivity and workforce development to maintain long-term competitiveness.
Strengthening workforce and enterprise transformation
The government has also announced enhancements to the SkillsFuture Enterprise Credit (SFEC) and the SkillsFuture Workforce Development Grant, aimed at encouraging businesses to invest in skills development and transformation. These changes build on recommendations from SBF’s Alliance for Action on Business Competitiveness and represent a significant shift in how funding is distributed.
SBF particularly welcomed the transition from a reimbursement model to a wallet-based system, which addresses challenges faced by small and medium-sized enterprises (SMEs). Mr Kok praised the government’s responsiveness to industry feedback, stating that these improvements will make it easier for businesses to access the funds needed for workforce training and enterprise transformation.
Boosting the business ecosystem
Beyond workforce transformation, Budget 2025 includes measures to help businesses expand globally and pursue growth strategies such as mergers and acquisitions. SBF had recommended these initiatives, recognising the need for greater support in internationalisation and alternative financing options.
“We also welcome measures to strengthen the business ecosystem including measures to support enterprises to internationalise and to facilitate inorganic growth strategies such as through mergers and acquisitions which were among our Budget recommendations. We also highlighted the importance financing to support growth and scale, and welcome initiatives to support access to alternative financing options such as private credit. We look forward to more details from the Government in these areas,” Mr Kok said.
Additionally, the Budget commits over US$10 billion in infrastructure investments, spanning research and development, digital and physical connectivity, and energy security. These investments signal Singapore’s long-term economic strategy, ensuring a robust foundation for future growth.
SBF reaffirmed its commitment to working with the government to implement these measures, mobilise businesses, and create new opportunities that strengthen Singapore’s economic landscape.
