On top of dishing out attractive CDC vouchers, the Singapore Budget 2025 introduces a range of strategic measures designed to bolster businesses and drive sustainable growth.
With a strong focus on financial relief, workforce transformation, and technological advancement, these initiatives are set to benefit small and medium enterprises (SMEs) in numerous ways.
Here are 7 key takeaways for SMEs – and how they can turn these measures into opportunities.
1. Workforce and SME Support
Budget 2025 introduces a S$1 billion Private Credit Growth Fund, providing SMEs with expanded financing options to fuel growth. In parallel, the government is doubling its support for workforce transformation.
An additional S$200 million is added to NTUC’s Company Training Committee (CTC) Grant, allowing businesses to upgrade their workforce through employer-led training that leads to formal qualifications.
Moreover, a new SkillsFuture Workforce Development Grant consolidates existing schemes and provides up to 70% funding for job redesign activities.
These measures not only ease financial pressures on SMEs but also enable them to invest in employee development, resulting in a more skilled and competitive workforce.
On this note, check out Osome – where it can help to handle your accounting complexities while you seize Budget 2025’s opportunities.
Grab a free incorporation in Singapore and 16% off Osome services, including accounting and tax solutions here!
2. Corporate Tax Rebate
A cornerstone of the Budget is the maintenance of a 50% corporate income tax rebate, capped at S$40,000 per company.
Active companies that employed at least one local worker in 2024 are guaranteed a minimum benefit of S$2,000.
This rebate is designed to alleviate financial pressures—offsetting rising costs such as rent and labor—and to support investments in long-term growth.
For SMEs, this means more available capital to reinvest in technology, innovation, and market expansion.
3. Progressive Wage Credit Scheme Enhancement
The government has enhanced the Progressive Wage Credit Scheme with higher co-funding for wage increases.
This initiative aims to ease labor cost pressures on businesses while ensuring fairer wages for lower-income workers.
For SMEs, the enhanced scheme can help balance the need to remain competitive with the imperative to provide sustainable and equitable compensation, ultimately contributing to workforce stability and improved productivity.
4. Technology and AI Investment
In recognition of the importance of digital transformation, Budget 2025 allocates S$150 million for the Enterprise Compute Initiative.
This funding is aimed at helping SMEs adopt AI tools and advanced digital technologies that drive productivity and innovation.
By embracing these technological advancements, SMEs can streamline operations, reduce costs, and gain a competitive edge in an increasingly digital marketplace.
5. Funding for Enterprise Innovation and Expansion
The Budget provides a significant S$3 billion top-up to the National Productivity Fund (NPF), fueling innovation, productivity, and the adoption of new technologies.
In tandem with the S$1 billion Private Credit Growth Fund, these measures improve SMEs’ access to capital.
This expanded funding landscape will enable businesses to scale operations more easily, invest in research and development, and potentially list on the local bourse—fostering a more vibrant capital market.
6. Tax Incentives for Listing and Market Vibrancy
New tax incentives have been introduced to encourage local-based firms and fund managers to list in Singapore.
These measures are designed to spur capital market vibrancy, making it easier for SMEs to raise funds and attract investment.
Investing in Singapore equities is set to become even more appealing under the new incentives. These measures are designed to stimulate market growth and boost liquidity, making the market increasingly attractive.
Established names such as CapitaLand Mall Trust, Mapletree Industrial Trust and Frasers Logistics & Commercial Trust are well-positioned to capitalize on these favorable changes. SGX, Singapore’s sole exchange operator, will also benefit from all the potential IPOs coming into Singapore too.
With their attractive valuations and strong fundamentals, increased investor interest in these stocks could further drive market momentum and enhance performance across the board.
7. Sustainability Funding for Green Transition
With a S$5 billion injection into the Future Energy Fund, SMEs in sectors like manufacturing and logistics can access grants for adopting green technologies (e.g., solar panels, electric machinery).
Circular economy grants and carbon credit platforms further incentivize sustainability efforts, aligning with global decarbonization goals.
How Osome Can Help SMEs Leverage Budget 2025
Navigating these initiatives requires expertise in compliance, funding applications, and strategic planning.
Osome, your trusted accounting partner, simplifies financial management so you can focus on growth.
From optimizing tax rebates to guiding AI adoption and sustainability grants, Osome’s platform offers:
- Automated tax filing to maximize rebates and incentives.
- Real-time financial insights for informed decision-making.
- Grant application support to unlock government funding.
- Sustainability reporting tools to align with green initiatives.
Let Osome handle your accounting complexities while you seize Budget 2025’s opportunities.
Grab a free incorporation in Singapore and 16% off Osome services, including accounting and tax solutions here!
