Singapore’s Budget 2025, presented by Prime Minister Lawrence Wong, focuses on helping people deal with rising living costs, supporting families, and preparing for the country’s future growth. This budget is his first as Prime Minister, and it aims to balance short-term financial help with long-term planning. The government wants to make sure that no one is left behind during tough economic times.
The budget includes cash payouts, special vouchers, tax rebates, and support for the elderly and lower-income families. It also introduces changes to CPF savings and funding for children’s education. These efforts are meant to help everyone—young and old, workers and businesses—feel more secure and ready for the future.
At the same time, Singapore is investing in its economy through infrastructure and green energy. With new support for businesses and job training, the budget plans to make Singapore stronger and more competitive in the global market.
What’s New in Budget 2025?
Direct Help for Daily Needs
The government is giving out new vouchers and cash payouts to help with living costs. These benefits will help households pay for bills, groceries, and other needs:
| Financial Support | Amount (S$) | Who Benefits? | Month of Distribution |
|---|---|---|---|
| CDC Vouchers (New) | 800 | All households | May 2025, Jan 2026 |
| Climate Vouchers (Enhanced) | Up to 400 | HDB & private property residents | April 2025 |
| SG60 Vouchers (New) | 500 | All citizens | July 2025 |
| SG60 ActiveSG Credit (New) | 100 | All citizens | June 2025 |
| GSTV Cash Payout | 450 – 850 | Lower and middle-income households | August 2025 |
| Large Family LifeSG Credits | 1,000 per child | Families with 3rd and subsequent children | September 2025 |
These programs aim to ease pressure from inflation and give people more money for everyday needs.
Extra Help for Seniors and Lower-Income Groups
To support older citizens and those earning less, the government is giving:
- MediSave Top-Ups: Seniors will get between S$150 and S$450 to help with medical bills.
- Annual Cash Assistance (AP): Lower-income people will get S$100 to S$600 extra yearly.
- Matching MediSave Contributions: If someone adds money to their MediSave, the government will match it.
These steps make sure that seniors and low-income groups stay protected and can afford basic services.
Family and Education Support
To make raising kids more affordable and to help children succeed in school, Budget 2025 includes:
- Childcare Fee Caps: Fees at government-supported preschools will be reduced to S$610–S$650.
- Education Savings: A bonus of S$500 will be added to children’s Edusave or Post-Secondary Education Accounts.
- Third Child Bonus: Parents having a third child or more will receive up to S$16,000 in support.
This is part of a plan to encourage more births and reduce the financial pressure on families.
Tax Cuts and Better Retirement Savings
To help working people and boost retirement plans:
Income Tax Rebate
- All taxpayers will get a 50% rebate, with a maximum of S$400, for the Year of Assessment 2025.
CPF Contributions
- Starting in 2026, workers aged 55 to 65 will see an increase in CPF contribution rates by 1.5%.
- Voluntary MediSave contributions will now receive matching funds from the government.
These actions give workers more money in hand and help them save better for retirement.
Support for Businesses and Job Growth
Tax Rebates and Training Incentives
To help businesses grow and support their workers:
- Corporate Tax Rebate: 50% rebate, capped at S$40,000 per company.
- Wage Support Grants: Companies raising lower-wage workers’ salaries will get extra funding.
- SkillsFuture Monthly Payment: Mid-career workers doing part-time training will get S$300 per month.
These programs will boost productivity, create better jobs, and help workers upgrade their skills.
Building for the Future: Infrastructure and Energy
Singapore is putting big money into infrastructure and energy projects:
- Changi Airport Development Fund will be expanded to increase airport capacity.
- National Productivity Fund will get more funds to boost innovation and competitiveness.
- The government will also explore nuclear power as a future energy source.
These efforts show Singapore’s long-term plan to stay modern, connected, and environmentally ready.
When Will You Get the Benefits?
Here’s a quick look at the schedule for benefit distribution:
| Month | Key Benefits |
|---|---|
| April | U-Save, S&CC Rebate, Climate Vouchers |
| May | CDC Vouchers (New) |
| June | SG60 ActiveSG Credit (New) |
| July | SG60 Vouchers (New) |
| August | GSTV Cash, GSTV MediSave, Education Top-Ups |
| September | Large Family LifeSG Credits (New), SG Culture Pass (New) |
| October | U-Save, S&CC Rebate |
| December | Cash (AP) |
| January 2026 | CDC Vouchers (New), U-Save |
The spread-out schedule ensures steady support for everyone throughout the year.