PM Wong unveils bumper SG60 Budget for all Singaporeans
(Photo credit: ST Photo/CHONG JUN LIANG)
Source: The Straits Times
Every Singaporean will receive something from Budget 2025, from vouchers for all adults to personal income tax rebates, as part of an SG60 package.
Prime Minister Lawrence Wong on Feb 18 unveiled what he termed “a Budget for all Singaporeans”, which includes expanding existing schemes to benefit more citizens and greater support for seniors as well as the vulnerable.
He also set out measures to grow Singapore’s economy, help workers upskill and meet its green targets.
The broad suite of measures announced tally up to a record $143.1 billion, an increase from the $134.2 billion spent in the 2024 financial year.
This is about 18.7 per cent of Singapore’s gross domestic product, and is in line with projected trends for government spending that is expected to reach about 20 per cent of GDP by 2030.
The moves are financed by changes to the tax system made earlier in this parliamentary term that put Singapore “on a stronger fiscal footing”, and larger-than-expected revenue collections.
Corporate income tax collections were more than expected in the 2024 financial year. This is now the single largest contributor to total government revenue, higher than the Net Investment Returns Contribution (NIRC), said PM Wong as he set out the Government’s fiscal position. The NIRC refers to the returns on investments of Singapore’s reserves.
He expects a surplus of $6.8 billion, or 0.9 per cent of GDP, for the 2025 financial year.
“When Singapore thrives, every citizen benefits,” said PM Wong, who is also Finance Minister.
“Every Singaporean is supported from birth to old age, with more support given to those with less. No one is left behind.”
PM Wong said the Budget was “shaped together with all Singaporeans”. It lays out the second instalment of plans on the Forward Singapore agenda, which seeks to keep society strong and united.
He noted that Singapore has to navigate a turbulent external environment, with the US and China locked in a fierce contest for global supremacy. Despite the global uncertainties, the Republic can look ahead with a degree of confidence as it is far stronger than it was 60 years ago, he added.
Noting that 2025 marks the country’s 60th year of independence, PM Wong said: “It has been a remarkable journey, reflecting the grit and resilience of generations of Singaporeans in building our nation.”
Something for all Singaporeans
He announced a new SG60 package to recognise the contributions of all Singaporeans and share the benefits of the nation’s progress.
In July, all Singaporeans aged 21 to 59 will receive $600 in SG60 vouchers, while those aged 60 and above will get $800. These vouchers, amounting to about $2 billion, will function like the CDC ones.
Under the package, individuals will also get a 60 per cent personal income tax rebate, capped at $200, for the 2025 year of assessment.
All Singaporean babies born this year will get an SG60 Baby Gift, PM Wong added, among other measures in the package.
The hotly anticipated Budget, which comes ahead of an upcoming general election widely expected by mid-year, also tackles top-of-mind issues for Singaporeans such as cost-of-living pressures and job insecurity.
To alleviate rising costs, PM Wong announced another $800 of CDC vouchers for all Singaporean households, totalling about $1 billion. The first $500 will be given out in May 2025, while the remaining $300 will be issued in January 2026.
He also announced more utility rebates and credits for families with children to defray household expenses.
While inflation is expected to ease further in 2025, PM Wong acknowledged that Singaporeans are still adjusting to new price realities. “We will continue to provide support for as long as needed, within our means,” he said.
To help parents who have or plan to have three or more children, PM Wong detailed a new Large Families Scheme.
The scheme will disburse $16,000 to such families for each third and subsequent child born from Feb 18, and help to cover pre-school and healthcare expenses, as well as household spending.
PM Wong also announced that several schemes will be extended to private property owners, including the climate vouchers programme that all Housing Board households can currently tap to buy energy- and water-efficient household appliances.
HDB households will get an additional $100, on top of the $300 they received last year, while households in private properties will get $400 in climate vouchers.
The Enhancement for Active Seniors (Ease) scheme that provides subsidised senior-friendly fittings and installations in HDB households will be extended to private property households up to 2028, said PM Wong.
Supporting workers, securing the future
While the Government has taken measures to mitigate the impact of rising costs, the best way in the longer term to adjust to higher prices is to grow the economy and increase productivity, he said.
Dedicating a significant portion of his Budget speech to new moves to grow the economy, he announced more funding for research and development and a new $1 billion fund to provide more financing options for high-growth local enterprises.
At the same time, workers must be equipped with the skills needed to stay competitive and relevant, said PM Wong.
He said that the SkillsFuture Level-Up Programme, announced in 2024 to support mid-career Singaporeans who are upskilling full-time, will also be extended to part-time training.
The Workfare Skills Support scheme, which currently covers short courses for lower-wage workers, will have an enhanced tier of support that covers longer-form courses, he added.
The Prime Minister also outlined measures to support more vulnerable groups of workers, including older workers, former offenders looking to reintegrate into society, and people with disabilities.
PM Wong said the Budget also lays the groundwork for the country to become stronger and more resilient.
It includes measures to tackle climate change, like a $5 billion top-up to the Coastal and Flood Protection Fund. The fund covers long-term plans such as land reclamation for Long Island and structures like sea walls and tidal gates.
Singapore will need to have its own domestic sources of clean power to ensure greater energy resilience, PM Wong said, adding that the country will study the potential deployment of nuclear power and take further steps to systematically build up capabilities in this area.
Apart from plans to access more sources of clean energy, the Government will accelerate efforts to decarbonise the transport sector, he said.
It will roll out a new emissions scheme and electric charging grant to incentivise the purchase of clean energy variants of heavy vehicles. Adoption of such vehicles has been slower compared with that of electric and hybrid cars.
Singapore will continue to improve its public transport system, said PM Wong, noting that $60 billion will be invested in this decade to grow and renew the rail network.
“We are continuing to study how our rail network can be expanded,” he added.
Concluding his speech, PM Wong said Singaporeans have to brace themselves for new challenges in the next phase of nation building.
The country has confronted tough external circumstances repeatedly over the past six decades, and “we can draw confidence from what we have been through together”, he added.
At every turn, Singaporeans have chosen determination over despair, innovation over stagnation, and solidarity over division, said PM Wong.
“Budget 2025 sets out clear plans for us to continue this journey with confidence.”