Singapore Budget 2025: A Windfall for Households and Businesses

In a move to ease the financial burden on Singaporeans and support businesses, Prime Minister Lawrence Wong has announced a slew of measures in the 2025 Budget. The budget, unveiled on February 18, focuses on mitigating the impact of rising living costs and promoting economic growth. Here's a rundown of the key announcements that will have a significant impact on households and businesses.

Relief for Households

The government has allocated S$800 million ($596 million) in consumption vouchers for every Singaporean household in 2025. The vouchers, worth S$800 per household, will be disbursed in two tranches: S$500 in May and the remaining S$300 in January 2026. These vouchers can be used at participating supermarkets, merchants, and hawkers, providing much-needed relief to households grappling with rising expenses.

Additionally, eligible households in public housing flats will receive S$760 in utility rebates. This measure aims to help households offset their utility costs, freeing up more disposable income for other expenses.



| Measure | Amount (per household) |
| --- | --- |
| Consumption vouchers | S$800 |
| Utility rebates (for eligible HDB households) | S$760 |

Support for Businesses

To help businesses navigate the challenging economic landscape, the government has announced a 50% corporate income tax rebate for companies. The rebate, with a minimum of S$2,000 and a cap of S$40,000, will provide immediate financial relief to companies, allowing them to reinvest the savings into their operations, expansion, or research and development.

Moreover, the government will increase co-funding levels for companies that raise the salaries of lower-wage workers. This measure aims to encourage businesses to invest in their workforce and ensure that lower-income workers receive fair compensation for their labor.



| Measure | Amount |
| --- | --- |
| Corporate income tax rebate | 50% of corporate income tax, with a minimum of S$2,000 and a cap of S$40,000 |
| Increased co-funding for wage increases | To be announced |

A Balanced Approach

The Singapore Budget 2025 strikes a balance between providing immediate relief to households and businesses while also investing in long-term economic competitiveness. The generous support measures, coupled with a focus on upskilling programs and sustainability initiatives, aim to create a more resilient and inclusive society.

As Singapore prepares to celebrate its 60th year of independence, the government has demonstrated its commitment to supporting its citizens and businesses through challenging times. The Budget 2025 announcements are a testament to the government's ongoing efforts to address the concerns of Singaporeans and ensure a prosperous future for all.



In conclusion, the Singapore Budget 2025 has delivered a much-needed boost to households and businesses, providing relief and support to help them navigate the challenges of rising living costs and a shifting economic landscape. With a balanced approach that combines immediate relief with long-term investments, the government has set the stage for a more resilient and prosperous Singapore.