Six things to look out for in Budget 2025
As the fifth and final one for the current term, some watchers expect an ‘election Budget’ with a ‘feel-good factor’
- Follow our coverage of Finance Minister Lawrence Wong’s Budget 2025 speech on our microsite.
FINANCE Minister Lawrence Wong will deliver the Budget statement – his first as prime minister – at 3.30 pm on Tuesday (Feb 18). Jobs and skills, as well as Singapore’s economic strategies for the next bound, are expected to be key themes.
Budget 2025 is the fifth and final one for the current term, with the next general election to be held before November. Some watchers expect an “election Budget” with a “feel-good factor”.
1. Tackling cost of living
PM Wong said that Budget 2025 will tackle cost-of-living concerns. This could take the form of cash transfers or more CDC vouchers.
With Singapore’s operating revenue set to surpass estimates, analysts said that the government has ample fiscal room for a generous Budget.
2. SG60 bonus?
In 2015, as Singapore celebrated 50 years of independence, the Budget brought enhancements to the Goods and Services Tax Voucher scheme and MediSave top-ups. Later that year, all civil servants got an SG50 cash bonus.
Some observers speculate that Budget 2025 could have a similar “SG60 bonus”, commemorating the milestone while helping further with cost-of-living pressures.
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3. Raising job security and skills
Closely tied to cost-of-living worries is job security, particularly for older workers, PM Wong said. Watchers expect further investments in training, with possible enhancements to the SkillsFuture framework.
The loosening of foreign manpower policy, meanwhile, seems unlikely in an election year since immigration remains politically sensitive.
4. Bolstering business transformation
Several business associations hope companies can get funding support to adopt new technologies, including artificial intelligence.
For companies, the government may favour measures to improve long-term competitiveness, rather than “short-term goodies”.
5. Accelerating the green transition
Business groups are asking for more help to get companies to go green, given the high cost of adopting sustainable technologies and practices.
Some observers believe Budget 2025 could be a chance to refine green finance initiatives and allocate carbon tax revenue transparently to bolster green investment.
6. Rebates over tax hikes?
Analysts see tax hikes – or cuts – as unlikely, since most tax categories saw changes in the last few Budgets.
Instead, given that Singapore’s economy performed better than expected last year, corporate and personal income tax rebates are a possibility.
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