Singapore has released its Budget 2025 with a strong focus on supporting its people, helping businesses, and preparing for the future. Prime Minister Lawrence Wong, in his first budget as head of the government, aims to provide help today while planning for tomorrow. This includes giving direct cash to households, lowering costs for families, and offering new support for seniors and workers.
With rising prices and global uncertainties, many Singaporeans are facing financial pressure. That’s why the budget provides rebates on bills, education top-ups for kids, and higher retirement savings. Low-income groups and elderly citizens are also receiving special support to handle daily needs and healthcare expenses.
On the business side, the government is giving tax rebates and wage grants to help companies grow and pay their workers more. Major investments in infrastructure, like Changi Airport and energy planning, show that Singapore is looking ahead with confidence. This budget is built to protect, support, and grow Singapore’s economy and well-being.
Main Features of the Budget Plan
The 2025 Budget offers a wide mix of help, such as direct cash payments, tax breaks, savings top-ups, and business support. These measures are meant to ease the financial stress on households while making Singapore stronger in the long run.
More Help for the Elderly and Needy
Special attention is given to senior citizens and low-income groups:
- MediSave Top-Ups: Seniors get S$150 to S$450 for health needs.
- Annual Cash Help (Assurance Package): Extra S$100 to S$600 for lower-income people.
- MediSave Matching: Voluntary MediSave savings will be matched by the government.
This support ensures better health coverage and helps older citizens manage their daily needs with more security.
Support for Parents and Education
Raising children in Singapore can be costly, so the government is helping families through:
- Lower Childcare Fees: Fees capped at S$610 (anchor) and S$650 (partner preschools).
- Education Savings Top-Ups: S$500 more for Edusave or Post-Secondary Education Accounts.
- Extra Baby Bonus: Families with a third child or more get up to S$16,000 in total.
These measures make it easier for parents to afford quality education and childcare.
Tax Discounts and CPF Changes
To help workers keep more of their income and grow their retirement funds, the budget includes:
Tax Rebate for Individuals:
- 50% Income Tax Rebate, up to S$400, for all taxpayers in 2025.
CPF Contribution Boost:
- From 2026, CPF rates for those aged 55–65 will rise by 1.5 percentage points.
- Voluntary MediSave top-ups will get matching amounts from the government.
These changes give workers more take-home pay now and better retirement savings for the future.
Helping Businesses and Growing the Economy
Support for Companies:
- Corporate Tax Rebate: 50%, capped at S$40,000 per business.
- Wage Grants: For companies that increase lower-wage workers’ salaries.
- SkillsFuture: Workers taking mid-career training get S$300 per month.
Big Infrastructure Plans:
- Changi Airport Fund: More funding to expand airport and boost air travel.
- Productivity Fund: Extra money for tech upgrades and business innovation.
- Energy Plans: Study and plan for future use of nuclear power to secure long-term energy supply.
These programs make Singapore ready for future challenges while creating more job opportunities today.