Singapore has announced a comprehensive suite of support measures aimed at benefiting both households and businesses in 2025. In a bid to counteract rising costs due to global inflation and supply chain disruptions, the government will provide consumption vouchers and utility rebates to residents. Additionally, new tax breaks and funding initiatives will offer businesses increased financial assistance. This strategic move comes as part of the government's commitment to take "bold and decisive actions to advance our growth frontier."
Finance Minister Wong unveiled the details, highlighting that each household will receive 800 Singapore dollars ($596) in consumption vouchers throughout 2025. These measures are designed to ease the financial burden on citizens amidst heightened living costs driven by the aftermath of the Russia-Ukraine conflict and subsequent energy and food supply chain issues. The introduction of these vouchers underscores the government's dedication to supporting its residents through challenging economic conditions.
Beyond household support, Singapore aims to bolster business growth by extending support programs for companies seeking international expansion and those involved in mergers and acquisitions. A noteworthy addition is the launch of a SG$1 billion Private Credit Growth Fund. This initiative seeks to provide companies with more diverse financing options, tapping into the burgeoning private credit market known for its innovative financing solutions.
To further stimulate corporate growth, Singapore will offer a 50% rebate on corporate income tax for eligible companies. The rebate ranges from a minimum of SG$2,000 to a maximum cap of SG$40,000. These tax incentives are part of the broader effort to keep Singapore's business environment competitive on the global stage.
The country's economy experienced a robust growth of over 4% in 2024, but sustaining this level of expansion remains challenging. Wong emphasized the importance of economic growth as a remedy for rising prices:
"The best way to adjust to higher prices is to grow the economy and increase productivity, so that Singaporeans can enjoy higher real incomes and better standards of living." – Wong
In his statement, Wong also cautioned against complacency in maintaining Singapore's competitive edge:
"If we fail to stay competitive, we will be left behind." – Wong