Singapore has revealed its 2025 Budget, presented for the first time by Prime Minister Lawrence Wong. The main goals are to keep the economy stable, support families, and help businesses grow. The budget focuses on both short-term help and long-term development, ensuring that every Singaporean can benefit from the country’s progress.
To make life more affordable, the government is giving out cash payments, vouchers, and tax rebates. These include direct support for seniors, low-income citizens, and parents with children. Special rewards are also being offered to celebrate Singapore’s 60th year of independence, like SG60 vouchers and credits.
At the same time, the budget includes large investments in future infrastructure and productivity. From upgrading Changi Airport to boosting skills training, the government is thinking ahead. Businesses will get tax help, while workers are encouraged to learn new skills. With all these steps, the 2025 Budget aims to create a secure and promising future for all citizens.
Key Points of the 2025 National Budget
The Singapore Budget 2025 includes a wide range of programs and changes that offer financial support and improve living standards. The government wants to help citizens manage rising costs while making long-term plans for national growth.
Direct Cash Help and Vouchers for Daily Needs
To help Singaporeans with day-to-day expenses, the government is giving out various types of cash aid and vouchers.
These payments are meant to lower household costs like utility bills, groceries, and childcare.
Extra Help for Seniors and Low-Income Residents
The government is giving more attention to older Singaporeans and those with lower incomes. Key support includes:
- MediSave Top-Ups: Seniors will get S$150–S$450 to help cover healthcare expenses.
- Annual Cash Assistance (AP): An extra S$100–S$600 for eligible low-income groups.
- Matched MediSave Contributions: Voluntary payments to MediSave will be matched by the government to encourage retirement saving.
These steps make sure that basic needs, especially health, are covered for the most vulnerable groups.
Childcare and Schooling Support for Families
Families with children will get additional help to reduce costs for education and daily care. New measures include:
- Lower childcare fee limits: Now S$610 for anchor preschools and S$650 for partner preschools.
- Extra S$500 to Edusave or Post-Secondary Education Accounts for each child.
- Financial reward of up to S$16,000 for parents with a third child or more.
These changes aim to make raising children easier and encourage larger families in Singapore.
Tax Savings and CPF Updates
Tax Rebate for Working Citizens
All individual taxpayers will enjoy a one-time 50% income tax rebate, up to a maximum of S$400, for the 2025 tax year. This will help working people handle financial responsibilities more easily.
Changes to CPF Contributions
Starting in 2026, CPF rates for workers aged 55–65 will increase by 1.5 percentage points. This ensures better savings for retirement. Also, any voluntary MediSave contributions will now be matched by the government to support better healthcare savings.
Help for Companies and Workers
Business Tax Cuts and Workforce Support
To help companies grow and support their staff, the following measures are being introduced:
- Corporate Tax Rebate: 50% rebate (up to S$40,000 per company) to encourage pay increases for low-wage workers.
- Support for Pay Hikes: Extra grants for companies that raise salaries of lower-wage employees.
- Mid-Career Training Bonus: Workers joining part-time courses under SkillsFuture will receive S$300 monthly support.
These steps will help improve worker skills, boost salaries, and make businesses stronger.
Building for the Future: Infrastructure and Green Growth
Singapore is planning big investments to prepare for future needs. Major projects include:
- Changi Airport Development: Billions added to expand the airport and improve transport links.
- National Productivity Fund: More money added to support innovation and technology.
- Energy Security Plans: Authorities will explore nuclear energy options for long-term sustainability.
These efforts will make Singapore more competitive globally while promoting eco-friendly development.