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Singapore’s annual budget is more than just a financial document; it’s a compass guiding the nation’s economic journey, and for SME business owners, it’s a critical roadmap.
With 2025 on the horizon, anticipation is building. As the backbone of Singapore’s economy, SMEs are keenly awaiting the budget’s announcements, seeking clarity on support measures, growth initiatives, and strategies to navigate the evolving business landscape. The Singapore Budget 2025 introduces a mix of immediate reliefs and long-term investments, signalling a strategic move to strengthen and future-proof its economy amidst global uncertainties. The government is committed to ensuring that the benefits of the budget are inclusive, reaching even the smallest players in the corporate sector.
11 Benefits for SMEs in Singapore Budget 2025
1. Corporate Income Tax Rebate
A significant highlight is the 50% Corporate Income Tax rebate for the Year of Assessment 2025. This initiative is designed to alleviate the financial strain on businesses, particularly SMEs grappling with rising operational costs. Recognizing that not all businesses might benefit due to profitability variances, the budget also introduces a provision for every active company employing at least one local employee to receive a minimum benefit of $2,000, with a cap at $40,000.
2. Enterprise Compute Initiative
Recognising the transformative potential of artificial intelligence (AI), the budget introduces the Enterprise Compute Initiative. With a fund of up to $150 million, this initiative aims to improve access to AI tools and computing power for SMEs, enabling them to integrate advanced technological solutions into their operations.
3. Enhancements to the Progressive Wage Credit Scheme
The government’s co-funding levels for wage increases will rise from 30% in 2025 to 40%, and from 15% in 2026 to 20%, helping SMEs manage labour costs as they raise wages.
4. SkillsFuture Workforce Development Grant
A new grant that consolidates existing schemes and simplifies the application process. It will provide higher funding support of up to 70% for job redesign activities.
5. Extension of support schemes for internationalization, and mergers and acquisitions.
The enhanced Market Readiness Assistance (MRA) Grant (cap of $100,000 per new market) will be extended until 31 March 2026. This grant helps SMEs defray the costs of overseas market promotion, business development, and market setup.
The Double Tax Deduction for Internationalisation (DTDi) scheme that allows businesses to claim a 200% tax deduction on qualifying market expansion and investment development expenses, will be extended until 31 December 2030.
The Enterprise Financing Scheme (EFS) maximum loan quantum under the EFS – Trade Loan will be permanently enhanced from $5 million to $10 million. This will help businesses meet their increased trade financing needs and support their internationalization efforts.
The Mergers and Acquisitions (M&A) scheme, which allows a Singapore company that makes a qualifying acquisition of the ordinary shares of another company to claim certain tax benefits, will be extended until 31 December 2030.
6. Global Founder Programme
EDB will launch this programme to encourage global entrepreneurial talents to anchor and grow new ventures in Singapore, enhancing the enterprise ecosystem.
7. Private Credit Growth Fund
This fund is poised to offer more flexible financing options, particularly for high-growth local enterprises that may find traditional bank loans less accessible.
8. Tax Incentives for Listing
New tax incentives for Singapore-based companies and fund managers that choose to list in Singapore, as well as for fund managers investing in Singapore-listed equities, to enhance the attractiveness of the Singapore Stock Exchange.
9. Extension of the Uplifting Employment Credit
The Uplifting Employment Credit, which provides a wage offset to employers hiring ex-offenders, will be extended to end-2028, encouraging SMEs to hire from a wider talent pool.
10. Support for Technology Adoption
Initiatives like the Productivity Solutions Grant and SMEs Go Digital will continue to encourage the adoption of off-the-shelf technology solutions such as AI-powered analytics and digital marketing tools.
11. SkillsFuture Enterprise Credit
A redesigned credit system that will function like an online wallet, allowing companies to offset out-of-pocket costs for workforce transformation initiatives and courses. All companies with at least three resident employees will receive a fresh $10,000 credit, available in the second half of 2026.
These measures collectively aim to alleviate cost pressures, support workforce transformation, and foster growth and innovation among SMEs in Singapore.
Transform your business today
We provide digital solutions that are eligible for these grants! SMEs are eligible for up to 80% support for the adoption of EPOS Pre-Approved Solutions under the IMDA SMEs Go Digital programme. We also offer Digital Marketing Solutions for SMEs seeking business growth, providing tailored marketing strategies catered to the unique needs of each business. Last but not least, keep your customers returning with the EPOS Loyalty Program, powered by Whataspp.
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