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Singapore Budget and national election 2025: what’s been promised for small businesses

30 May 2025

Singapore’s 2025 Budget and national elections came in quick succession in the early part of 2025.

From its Budget 2025 to strategic agreement refreshes, Singapore has several upcoming policy and government initiatives designed to encourage more Australian firms to invest and expand in the country.  

Here’s a quick whistlestop tour of initiatives that Australian firms can leverage: 
 

  1. Corporate Income Tax Rebate: Singapore's Budget 2025 includes a new 50% Corporate Income Tax rebate, capped at S$40,000 per company for the Year of Assessment 2025. This rebate aims to support companies' cash flow needs, making it easier for Australian firms to manage cost. 
  2. Enhanced Progressive Wage Credit Scheme: The co-funding of wage increases for lower-income workers will rise to 40% in 2025 and 20% in 2026. This initiative helps companies uplift wages with less burden on their bottom line, promoting a more inclusive workforce. 
  3. Extended Land Intensification Allowance (LIA): This allowance offsets tax payable on qualifying capital expenditure for construction or renovation of qualifying buildings. It supports companies seeking to optimise space and achieve economies of scale. 
  4. Research, Innovation, and Enterprise (RIE) 2025 Plan: Singapore has committed S$25 billion to R&D through the RIE 2025 plan, with an additional S$3 billion injected to deepen capabilities in advanced manufacturing, sustainability, and the digital economy. This investment creates opportunities for Australian firms to collaborate on cutting-edge research and innovation. 
  5. GenAI x Digital Leaders Initiative: Launched in 2024, this initiative aims to accelerate AI adoption among SMEs by partnering firms with tech vendors to develop and deploy AI solutions. This initiative is particularly beneficial for Australian tech firms looking to expand their AI capabilities. 
  6. Australia-Singapore Comprehensive Strategic Partnership: Expected to be renewed and refreshed later in 2025, this partnership focuses on closer collaboration in AI and digital transformation. Joint ventures and licensing agreements between Australian and Singaporean firms are encouraged, leveraging government support and incentives for AI and digital projects.

 

What was earmarked for small business from the recent elections 

In addition to the Budget call outs, the incumbent People Action Party announced several initiatives during the two-week election campaign. These include:

  1. Enhanced Grants and Subsidies: PAP plans to increase the availability of grants and subsidies for small businesses, particularly in areas like digital transformation and sustainability. This includes financial support to help businesses adopt new technologies and green practices 
  2. Access to Financing: The party has committed to improving access to financing for small businesses. This includes expanding loan schemes and providing more favourable terms to help businesses manage cash flow and invest in growth 
  3. Training and Development: PAP aims to provide more training programs tailored for small business owners and their employees. These programs will focus on upskilling in areas such as digital marketing, financial management, and customer service 
  4. Regulatory Support: The party has promised to streamline regulatory processes to make it easier for small businesses to comply with laws and regulations. This includes reducing red tape and simplifying licensing procedures 
  5. Market Access: PAP plans to help small businesses expand their market reach, both locally and internationally. This includes initiatives to promote local products and services and support for businesses looking to enter new markets 
     

 

This five-part series explores how SMEs can unlock growth by tapping into stronger Australia–Singapore ties and shared momentum in innovation, AI and smart cities. The insights are powered by Via Communications Group: a communications agency focused on supporting international businesses with their cross-border communications needs across Asia. You can check them out at wearevia.com

 


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