Budget 2025: S$3 billion top-up to National Productivity Fund; S$1 billion for biotech, semicon R&D

TO ANCHOR more high-quality investments, resources must be set aside to maximise Singapore’s competitive strengths, Finance Minister Lawrence Wong said on Tuesday (Feb 18). 

He announced in his Budget 2025 speech that the government will top up the National Productivity Fund by S$3 billion.

He noted that over the last 20 years, the government has consistently invested about 1 per cent of the nation’s gross domestic product annually in research and development (R&D).

“These investments have borne fruit. For example, our biotech ecosystem would not be where it is today without Biopolis, which we built more than 20 years ago,” he said.

Within the biotech and semiconductor sectors, the government will invest about S$1 billion in research infrastructure.

The government will also develop a new national semiconductor R&D fabrication facility.

“This will provide industry-grade tools for researchers and industry partners to prototype and test new semiconductor innovations,” said PM Wong.

The biotech sector will also receive a refresh in its public biosciences and medical technology research infrastructure in the greater one-north area, he added.

In addition, with effect from Feb 19, 2025, companies will receive full tax deductions for payments made under approved cost-sharing agreements for innovation activities. The Economic Development Board will provide further details by the second quarter of this year.

SEE ALSO

More moves expected to promote innovation in Budget 2025, say industry watchers

Budget 2025 may run generous deficit of up to S$6.6 billion, after FY2024 surplus: economists

For more Budget stories, visit businesstimes.com.sg/singapore-budget-2025