The Singapore Budget 2025, presented by Prime Minister Lawrence Wong on February 18, brings welcome relief for small businesses facing rising costs while also providing support for long-term growth. As your accounting partner, we’ve analysed the key measures that matter most to small business owners. Here’s what you need to know.
The government has introduced several measures to help manage your business costs:
Good news for your bottom line – you’ll receive a 50% corporate income tax rebate for YA 2025. Even better, if you employ at least one local worker in 2024, you’ll get a minimum cash grant of SG$2,000, even if you’re not profitable. The combined benefit is capped at SG$40,000 per company, providing meaningful support for small businesses.
The Progressive Wage Credit Scheme has been improved to help you manage wage costs. The government will now co-fund 40% of wage increases in 2025 (up from 30%) and 20% in 2026 (up from 15%) for lower-wage workers. This support helps you retain valuable employees while managing payroll expenses.
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The Enterprise Compute Initiative will help small businesses leverage AI technology by providing access to cloud services, AI tools, and expert consultancy. This practical support reduces the barriers to adopting AI, helping you improve efficiency without heavy upfront investments.
The new SkillsFuture Workforce Development Grant covers up to 70% of job redesign costs. Plus, if you have at least three resident employees, you’ll receive an additional SG$10,000 in SkillsFuture Enterprise Credit from late 2026, making it easier to invest in your team’s capabilities.
The new SG$1 billion Private Credit Growth Fund will provide more financing options for high-growth businesses. Additionally, the Enterprise Financing Scheme has been enhanced with increased loan caps and broader coverage for mergers and acquisitions.
If you’re considering overseas expansion, several schemes have been extended:
The government continues to support inclusive hiring practices:
This year’s Budget demonstrates strong government commitment to supporting small businesses through current challenges while preparing for future growth. The combination of immediate cost relief and long-term transformation support provides a solid foundation for your business development.
As your accounting partner, we’re here to help you maximise these benefits. Whether you need assistance with tax planning or financial strategy, our team is ready to support your business growth journey.
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