EY reactions to Singapore Budget 2025

EY today released its reactions to the Singapore Budget 2025, titled “Onward Together For A Better Tomorrow”.

Mr. Liew Nam Soon, Singapore Country Managing Partner and EY Asean Regional Managing Partner, Ernst & Young Solutions LLP says:
“A well-rounded SG60 Budget that reflects the government’s twin focus on strengthening our ‘hardware’ and ‘heartware’. It balances fiscal prudence with decisive and inclusive investments to secure Singapore’s relevance and competitiveness in an uncertain world. Measures that fortify our social compact and uplift targeted segments of our community, coupled with initiatives that drive new frontiers of innovation and technology, energize our enterprise ecosystem and accelerate infrastructure developments, will position us nimbly and steadily for the next lap of sustainable growth.”

Ms. Soh Pui Ming, Singapore Head of Tax, Ernst & Young Solutions LLP, says:
“A Budget for Singaporeans, shaped by Singaporeans. This is a comprehensive Budget that recognises and addresses the challenges that individuals, households and businesses face, uplifts those that need support, but remains focused on the long-term and sustainable future of Singapore. Celebrating the country’s growth over the past 60 years, while rallying its people to stay united, Budget 2025 is one for the future, paving the way for the nation’s next lifecycle with confidence.

“Additionally, the continuous refinements made to the tax system has made Singapore more resilient and progressive on a fiscal front. With the global tax uncertainties, Singapore should continue to monitor global developments and stay agile to change.”

Tackle cost pressures

Ms. Kerrie Chang, Partner, People Advisory Services Tax, Ernst & Young Solutions LLP, says:
“Budget 2025 is testament to the Singapore government's proactive approach in addressing the multifaceted challenges faced by its citizens. By increasing CDC vouchers and enhancing the Assurance Package, the government is directly tackling the rising cost of living and providing much-needed relief to lower and middle-income households. The focus on families with children and caregiving responsibilities, through initiatives like increased ComCare Assistance and the Singapore Allowance for pensioners, underscores a commitment to inclusivity and social equity. This Budget not only aims to stabilise inflation but also ensures that every segment of society has access to essential services and opportunities. It reflects a balanced strategy of immediate relief and long-term investment in the well-being of all Singaporeans.”

Mr. Desmond Teo, Asean EY Private Tax Leader, says:
“The proposed corporate income tax rebate will help to reduce the costs of doing business and alleviate cash flow crunch for companies amidst the economic uncertainties in the horizon. Even for active companies that are not profitable, they are not forgotten, as they will receive a minimum cash grant of S$2,000.”

Advance our growth frontier

Mr. Manik Bhandari, EY Asean AI and Data Leader, says:
“The new Enterprise Compute Initiative with S$150m funding will certainly help to create relevant artificial intelligence (AI) solutions and business applications that will improve productivity and drive enterprise transformation through tripartite collaboration between enterprises, cloud service providers and consultancies.”

Mr. Desmond Teo, Asean EY Private Tax Leader, says:
“The introduction of the S$1b Private Credit Growth Fund will provide broader funding channels for start-ups and small businesses and build up the private credit market in Singapore. This will likely have a catalytic and rippling effect as well, attracting other forms of capital, such as family offices and high net worth individuals.”

Mr. Chai Wai Fook, Partner, Tax Services, Ernst & Young Solutions LLP, says:
“While inflation has eased, the overall costs of doing business remain high for enterprises. The increase in government co-funding for the Progressive Wage Credit scheme can help to tackle the rising labour cost pressures faced by businesses. On the corporate income tax front, the government continues to grant a 50% rebate with a maximum benefit of S$40,000 for businesses in the Year of Assessment 2025. Small and medium local enterprises, which have tightened their belts to deal with cost pressures, are likely to benefit the most from these measures.”

Mr. Chai Wai Fook, Partner, Tax Services, Ernst & Young Solutions LLP, says:
“It is heartening to hear that Singapore accounts for the production of more than 80% of the world’s DNA chips. This shows that the nation’s committed investments in technology and innovation are paying off. As Singapore will now differentiate on competing in high-value solutions, businesses should continue to aspire to boost their technology and innovation capabilities. The S$150m Enterprise Compute Initiative is a step in the right direction as it enables enterprises with limited resources to gain access to AI through partnerships with major cloud service providers. This will help deepen the use of AI to transform our economy and propel Singapore forward in our smart nation strategy.”

Mr. Chai Wai Fook, Partner, Tax Services, Ernst & Young Solutions LLP, says:
“The additional S$3b top-up to the National Productivity Fund will further empower businesses to enhance productivity and invest in the education and training of their workforce. This initiative will help attract high-quality investments from multinational enterprises and foster the development of new capabilities to support industry transformation, while creating better jobs and opportunities to drive sustainable growth to the Singapore economy.”

Mr. Praveen Tekchandani, Singapore Climate Change and Sustainability Services Leader and Partner, Ernst & Young LLP, says:
“Instead of going on the green transition journey alone, Singapore looks to bring along the rest of ASEAN by co-investing in low-carbon electricity projects in our neighbouring counties and creating a market for the low-carbon electricity generated.”

Mr. Sanjeev Gupta, EY Asia-Pacific Energy and Commodity Markets Leader, says:
"The S$5b top-up to the Future Energy Fund is a pivotal investment in Singapore's journey towards a net-zero future. By supporting critical infrastructure for energy transition, we are not only securing clean power but also fostering innovation and technological advancement. This commitment to diversifying our energy sources positions Singapore as a forward-thinking leader in energy transition. As businesses align with these initiatives, they will enhance their resilience and competitiveness in a rapidly evolving global landscape."

Mr. Stephen Bruce, Partner, Financial Services Tax, Ernst & Young Solutions LLP, says:
“With a focus on fostering growth and innovation, the tax incentives aimed at empowering resident companies and fund managers to list on the Singapore Exchange will not only attract new listings but also solidify Singapore's position as a leading financial hub.”

Mr. Johanes Candra, Partner, Business Incentives Advisory, Ernst & Young Solutions LLP, says:
“The EDB’s Global Founder Programme positions Singapore as a launchpad for multinational ventures. By connecting entrepreneurs with industry networks, it attracts more than just capital — it fosters a thriving ecosystem where global expertise and local talent converge, driving cross-border innovation in Singapore's key sectors.”

Ms. Tracy Tham, Partner, Business Incentives Advisory, Ernst & Young Solutions LLP, says:
“Singapore’s S$1b R&D commitment, including a national semiconductor fab, shifts the city-state from tech adopter to core innovator. Embedding companies within advanced research ecosystems fosters proprietary intellectual property development, anchoring high-value manufacturing amid global supply chain realignments.”

Mr. James Choo, Partner, International Tax and Transaction Services, Ernst & Young Solutions LLP, says:
“The statement on Singapore’s position in relation to the Global Minimum Tax gives insights into the government’s posture on implementation and tax collections. As an important hub in the global economy, Singapore’s responsiveness and adaptability to global tax policy developments are key to maintaining the nation’s edge in attracting investments into the country.”

Equip workers throughout life

Mr. Goh Jia Yong, Partner, People Consulting, Ernst & Young Advisory Pte. Ltd., says:
“The proposed efforts to streamline and enhance the various workforce transformation-related grants and schemes will make it easier for enterprises to access support to redesign jobs, upskill their workers and strengthen their ability to hire and retain employees.”

Mr. Samir Bedi, EY Asean People Consulting Leader, says:
“Budget 2025 highlights that the jobs of the future will be different from those today. Companies are best placed to continuously define these new jobs as they transform. Thus, the focus on putting companies at the centre of reskilling is critical for the country to accelerate lifelong employability. The online wallet for enterprises will make credits accessible and encourage companies to focus on learning and reskilling.”

Mr. Samir Bedi, EY Asean People Consulting Leader, says:
“Budget 2025 seeks to drive sustainable growth in the next decade with a focus on technology and innovation. This puts an even larger impetus on reskilling and lifelong learning to secure better and future-ready jobs and skills.”

Mr. Goh Jia Yong, Partner, People Consulting, Ernst & Young Advisory Pte. Ltd., says:
“Budget 2025's efforts to expand the SkillsFuture Level-Up programme and Workfare Skills Support scheme will allow more mid-career and lower-wage workers to benefit from full-time and part-time training, accelerate efforts to upskill and reskill our ageing workforce and enhance their relevance in the rapidly changing global economy.”

Build a sustainable city

Mr. Praveen Tekchandani, Singapore Climate Change and Sustainability Services Leader and Partner, Ernst & Young LLP, says:
“Singapore's proactive investment of S$5b into the Coastal and Flood Protection Fund is a critical measure to safeguard our nation against the looming threat of coastal flooding. With one-third of Singapore vulnerable to rising sea levels and storm surges, this funding not only enhances our resilience but also signals to businesses the importance of integrating climate risk into their operational strategies. By prioritising infrastructure that protects against flooding, we are ensuring a stable environment for economic growth and innovation, ultimately fostering a sustainable future for all.”

Ms. Toh Shu Hui, Partner, Tax Services, Ernst & Young Solutions LLP, says:
“The transport sector accounts for approximately 15% of Singapore's total emissions. The introduction of the Heavy Vehicle Zero Emissions Scheme and the Electric Heavy Charger Grant to incentivise the adoption of clean heavy vehicles will catalyse businesses to adopt cleaner modes of transport, reducing their carbon emissions.”

Nurture a caring and inclusive society

Ms. Kerrie Chang, Partner, People Advisory Services Tax, Ernst & Young Solutions LLP, says:
“The ongoing increase in CPF contribution rates by 1.5 percentage points for employees aged 55 to 65 aims to enhance retirement savings and improve the quality of life for senior workers. This adjustment helps older employees better prepare for their retirement years. Concurrently, the extension of the CPF Transition Offset is a considerate measure to support businesses in managing the additional costs. This initiative strikes a balance by prioritising the financial security of older workers while addressing the concerns of businesses.”

Mr. Panneer Selvam, EY Asean People Advisory Services Tax Leader, says:
“It has been an extremely well-balanced Budget to address the financial impact of growing families, ageing population and individuals with disabilities. Managing long-time medical expenses and support infrastructure for those in need reflects a truly meaningful and well-thought through Budget to meet financial concerns of the social economy.”

Rally as one united people

Mr. Panneer Selvam, EY Asean People Advisory Services Tax Leader, says:
“Overall, the SG60 vouchers represent a thoughtful and strategic approach to celebrating Singapore's 60 years of independence, fostering economic recovery, and strengthening community bonds. It is a reminder of the progress made, and the collective efforts needed to continue advance the Forward Singapore agenda, while ensuring that no Singaporean is left behind.”

Ms. Kerrie Chang, Partner, People Advisory Services Tax, Ernst & Young Solutions LLP, says:
“The various measures under the SG60 package reflects Singapore's robust economic performance and provides timely financial relief amid rising cost-of-living pressures and inflation. This gesture underscores the government's commitment to supporting its citizens and celebrating Singapore's 60th year of independence. By offering financial relief during a significant milestone, the government reinforces its dedication to the well-being of its people and the continued prosperity of the nation.”

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