Government Allocates Resources to Support Families, Workers, and Long-Term Growth Goals
Singapore’s Budget 2025 has been hailed as a forward-looking and generous plan, balancing immediate financial relief with long-term strategic investments aimed at ensuring sustained economic growth. The government’s $143.1 billion budget focuses on providing relief for families and businesses while simultaneously addressing Singapore’s future needs through targeted investments.
During a panel discussion held on February 19, following the announcement by Prime Minister Lawrence Wong, panellists praised the Budget for building on previous measures aimed at supporting families, workers, and businesses. The panel included experts such as Minister in the Prime Minister’s Office Indranee Rajah, labour economist Walter Theseira, and Musa Fazal from the Singapore Business Federation (SBF).
One of the most significant aspects of Budget 2025 was the continuation of schemes like the CDC Vouchers Scheme, which offers $800 per household in the financial year 2025, and the introduction of SG60 vouchers. These initiatives aim to mitigate cost-of-living pressures faced by Singaporeans, particularly families. Prof Theseira emphasised that the Budget is building on past efforts to support workers and families, helping to maintain economic resilience.
From a business perspective, Mr Musa noted that the 50 per cent corporate income tax rebate would greatly benefit large companies, providing savings of up to $40,000. This move was well received by the business community, who recognised it as a key element of the Budget’s overall focus on bolstering the local economy.
Looking beyond immediate needs, Ms Indranee highlighted the importance of strategic resource allocation for long-term economic sustainability. She noted that the bigger objective was to stimulate economic growth, which in turn would create more jobs, opportunities, and income for Singaporeans. Investment in areas such as infrastructure, innovation, and clean energy were pointed out as key factors for ensuring the nation’s long-term prosperity.
Building on previous family-oriented initiatives, the new Large Families Scheme was introduced to support parents with additional children, offering $16,000 in aid from the third child onwards. Additionally, the government has made strides in making Singapore more family-friendly, addressing concerns such as work-life balance and the rising cost of raising children.
The Budget 2025 also extends its focus to singles, with new initiatives aimed at improving access to affordable housing, such as eligibility to purchase two-room flexi Build-To-Order flats. Ms Indranee assured that the Budget had something for everyone, adding that the expansion of housing schemes for singles would help meet diverse needs.
Further demonstrating the government’s commitment to addressing future challenges, a substantial portion of the Budget was allocated to support workforce transformation and innovation. The SkillsFuture Level-Up Programme, aimed at reskilling mid-career workers, was extended, and new grants were introduced to ease the burden of businesses applying for various workforce development schemes.
Ms Indranee also outlined key investments in future infrastructure projects, such as the $5 billion allocated to Changi Airport Terminal 5 and the $5 billion to the Coastal and Flood Protection Fund. These initiatives aim to safeguard Singapore from the impacts of climate change while positioning the country as a global hub for business and innovation.
Ultimately, the Budget lays a solid foundation for both immediate support and long-term sustainability, with a focus on creating a dynamic, future-ready economy. Panellists agreed that it is essential for Singapore to maintain its competitive edge globally, as the country faces growing competition from its regional counterparts. Ensuring economic dynamism and creating value for the nation will be key to securing a stable revenue base for future generations.
