Just like individuals, businesses can also look forward to new initiatives and schemes that are announced during the Budget speech. Singapore Budget 2025 did not disappoint with various announcements geared towards businesses.
It is all the more pertinent to help businesses in Singapore, as PM Lawrence Wong also revealed that Corporate Income Tax (CIT) has increased significantly in the past 2 years and is now the single largest contributor to total revenue – larger than even the Net Investment Returns Contribution (NIRC).
Here are 10 announcements that may impact your business in 2025 – and beyond.
#1 Corporate Income Tax Rebate (Capped At $40,000)
PM Lawrence Wong introduced a 50% Corporate Income Tax (CIT) rebate for YA2025, capped at $40,000. This will provide support for cash flow needs for businesses, which are grappling with higher rent and labour costs.
As not all companies may be profitable or stand to benefit from a Corporate Income Tax rebate , active companies that employed at least one local employee in 2024 will receive a minimum benefit of $2,000 in the form of a CIT Rebate Cash Grant.
Read Also: Complete Guide To Singapore Corporate Taxes: Tax Rates, Tax Rebates And Tax Exemptions
#2 Raise Co-Funding Levels For The Progressive Wage Credit Scheme (PWCS)
The Progressive Wage Credit Scheme (PWCS) provides transitional wage support for employers to adjust to progressive wages, and encourage them to raise wages for their low-wage workers.
In Budget 2025, PM Lawrence Wong committed to strengthening co-funding support via the PWCS in 2025 and 2026. Employers who raise the wages of their low-wage workers in 2025 will get 40% co-funding support, and those who raise wages in 2026 will get 20% co-funding support.
Employees must be earning a wage of up to $3,000 before the wage increase, and up to $4,000 after the wage increase.
| Qualifying Year (The year that the wage increase was given) | Payout Period | Current | New (Announced In Budget 2025) |
| 2025 | 1Q 2026 | 30% | 40% |
| 2026 | 1Q 2027 | 15% | 20% |
Read Also: Progressive Wage Credit Scheme (PWCS): What Businesses Need To Know
#3 More Support For Vulnerable Workers
The Government will increase CPF contributions for older workers aged 55 to 65 in 2026. They will have to contribute 1.5%-points more – with employers contributing 0.5%-points more and employees contributing the remaining 1%-point. The CPF Transition Offset (CTO) will offset half of the additional costs incurred by employers – which amounts to 0.25%-points.
Read Also: Increase In Retirement Age (Along With CPF Contributions): What Employers Need To Know
The Government will also provide wage support employers who hire seniors, Persons with Disabilities (PwDs) and ex-offenders:
The Senior Employment Credit (SEC) will be extended another year, to end-2026, providing between 2% and 7% in wage offsets for employers who hire Singapore seniors aged 60 and above, earning less than $4,000 a month.
Read Also: Guide To Senior Employment Credit (SEC) Payouts For Employers Hiring Older Workers In Singapore
The Enabling Employment Credit (EEC) was also extended to end-2028, providing up to 20% wage offsets for employers who hire Singaporean PwDs, earning less than $4,000 a month.
The Uplifting Employment Credit (UEC), was similarly extended to end-2028, providing up to 20% wage offsets for employers who hire ex-offenders earning less than $4,000, for the first nine months.
Read Also: Understanding The Uplifting Employment Credit (UEC)
#4 New Corporate Compute Initiative Worth $150 Million
PM Wong spoke about the need for enterprises to invest in technology to enhance competitiveness and productivity. Off-the-shelf solutions will continue to be encouraged through the Productivity Solutions Grant and the SMEs Go Digital scheme.
Beyond a certain stage though, more tailored AI solutions will be needed. A new Enterprise Compute Initiative worth $150 million was announced. Eligible enterprises will be partnered with major cloud service providers to access AI tools and computing power, and expert consultancy services.
Read Also: 5 Digital Solutions That Every Company Should Adopt Using The Productivity Solutions Grant (PSG)
#5 New SkillsFuture Workforce Development Grant
During the Budget speech, PM Wong said that the Government has received feedback and suggestions to streamline and improve the way agencies administer support to enterprises. A new SkillsFuture Workforce Development Grant will bring existing schemes by Workforce Singapore and SkillsFuture Singapore together – simplifying the application process.
The new grant will also provide a higher funding support of up to 70% for job redesign activities.
#6 SkillsFuture Enterprise Credit To Be Redesigned
The SkillsFuture Enterprise Credit offers employers up to $10,000 to defray the out-of-pocket costs for enterprise and workforce transformations. The existing scheme require employers to pay upfront and wait for reimbursements.
This can be onerous for employers, and there may also be employers that are not aware of their credits or how it can be used. Hence, PM Wong announced that the scheme will be redesigned to operate like an online wallet – where companies can use the credits immediately to offset out-of-pocket costs.
All companies with at least three resident employees will get a fresh $10,000 in the redesigned SkillsFuture Enterprise Credit that will be available in the second half of 2026. Meanwhile, the original $10,000 credits that were set to expire in June 2025 will be extended until the new credits are ready.
#7 SkillsFuture Level-Up Programme Enhanced; Workfare Skills Support Enhanced
The SkillsFuture Level-up Programme was a gamechanger when it was introduced in Budget 2024 – offering SkillsFuture Credit (Mid-Career) top-ups, subsidies to pursue another full-time diploma and training allowance, for those 40 and above.
During Budget 2025, the training allowance component was tweaked to allow those pursuing part-time long-form courses to also receive training allowance worth $300 per month.
Read Also: Complete Guide To The SkillsFuture Level-Up Programme (SFLP)
The Workfare Skills Support (WSS) scheme was also enhanced to work similarly to the SkillsFuture Level-Up Programme.
This will give low-wage workers aged 30 to 39 an opportunity to take long-form training courses earlier. Those taking an eligible full-time course will receive 50% of their average income over the last 12-months period, while those taking eligible part-time courses will get $300 in fixed monthly allowance.
#8 Support NTUC’s CTC Grant Worth $200 Million
NTUC’s Company Training Committees (CTCs) bring union leaders and employers together to design and implement workforce upgrading plans. Started in 2019, more than 2,700 CTCs have been set up, and almost 4 in 5 are in small and medium enterprises.
To support NTUC to help more companies in their transformation journey, PM Wong announced that $200 million will be set aside for additional funding under NTUC’s CTC grant. The CTC grant will also be expanded to support employer-led training that leads to formal qualifications or certifications.
#9 Launch Of $1 Billion Private Credit Growth Fund
PM Wong outlined the emergence of private credit market globally, but remarked that few of these are focused on Asia, much less Singapore. He introduced a new $1 billion Private Credit Growth Fund to offer more financing options for high-growth local enterprises.
#10 SG60 Support And Extension Of CDC Voucher Programme
As part of celebrating Singapore’s 60 birthday, SG60 schemes were announced. Some included business-related support measures, or measure that may positively impact businesses in certain sectors.
As part of this, SG60 Vouchers worth $600 or $800, which work similarly to CDC Vouchers, were provided to spur more spending at heartland shops and hawkers. This is in addition to $800 in CDC Vouchers given in Budget 2025.
Under the SG60 support measures, $600 in SG60 Rental Support for Hawker Centre and Market Stallholders were also provided.
A $100 Culture Pass will also be given to Singaporeans to use to purchase eligible local performances, exhibitions and experiences.
Read Also: CDC Vouchers: How Heartland Shops & Hawkers Can Start Accepting Payment
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