Singapore, 20 February 2025 – Singapore stands at a pivotal juncture as it approaches its Diamond Jubilee – a complex economic landscape shaped by both global uncertainties and domestic priorities. With that backdrop in mind, Prime Minister and Finance Minister Lawrence Wong, in his inaugural budget presentation on 18 February 2025, addressed the nation’s immediate concerns while keeping a bead on the country’s long-term health and prosperity.

In this year’s budget, Singaporeans can look forward to measures aimed at easing financial pressures on households, reinforcing Singapore’s long-standing commitment to social stability and inclusivity. Rising costs of living, workforce transitions / disruptions, and climate-related disruptions demand urgent attention.

Beyond addressing immediate economic concerns for households and businesses, the budget reaffirmed the government’s commitment to maintain Singapore’s position as a global business hub and continues to emphasize the need to enhance its engines of growth in technology and innovation.

Running in parallel and no less important, Singapore remains committed to its sustainability agenda, with the transition to a low-carbon economy firmly embedded in the nation’s long-term strategy.

Put together, this year’s budget aims to cushion impacts while fostering agility in a dynamic global landscape. It delivers timely support where needed while reinforcing fiscal responsibility, economic resilience and environmental sustainability.

Read the full commentary at Singapore Budget 2025 Commentary by CLA Global TS.

Download the portrait version for easier reading on mobile / tablet reading here.

INSIGHTS – Gain insights from CLA Global TS leaders on their perspectives on the Singapore Budget 2025.

Henry Tan, Group CEO & Chief Innovation Officer, CLA Global TS

“The recent announcement by Prime Minister Mr. Lawrence Wong to introduce tax incentives for companies and fund managers to list on the Singapore Exchange (SGX) represents a significant initiative to enhance the attractiveness of the local equities market. By encouraging increased listings and investment in Singapore-listed equities, these measures, recommended by the Equities Market Review Group, aim to foster a more dynamic and competitive marketplace, potentially leading to greater liquidity and stability. However, the success of these initiatives will depend on effective implementation, clear communication of the incentives, and ongoing evaluation to assess their impact. Supporting infrastructure development will also be crucial in maximising the benefits of this strategy and reinforcing Singapore’s position as a leading financial hub in Asia.”

Edwin Leow, Co-Advisory Leader, Head of Tax, CLA Global TS

“Budget 2025 is generous for one and all while remaining pragmatic. Singapore acknowledges that it cannot compete and outbid other major economies purely on costs and grants. Instead, the Government is redoubling its efforts to ensure that our engines of growth, being technology, innovation and her people continue to be well-oiled. Billion dollar top-ups to various national funds have been introduced to continue enhancing and refreshing Singapore’s first-in-class business environment and infrastructure, with key focus areas in Research and Development and Artificial Intelligence, along with various initiatives to promote life-long learning for her people. Put together, Singapore has positioned herself to adapt strategically to today’s market dynamism and at the same time fostering economic resilience for the current and future generations.”

Shaun Zheng, Director, Asset Management and Private Wealth Services Tax Lead, CLA Global TS

“There had been talk in the market as to whether tax-related recommendations with respect to the revitalising of our Singapore bourse would be effective. New entrants to the Singapore stock exchange may expect to receive a 5-year corporate income tax rebate of up to 20% of tax payable, up to a cap of S$6million, while fund managers who may be looking to list in Singapore can expect to enjoy an enhanced concessionary tax rate of 5% on its qualifying income, along with tax exemption on qualifying income arising from funds which invest substantially in Singapore-listed equities. While there are conditions to be met and fulfilled, we remain hopeful that they are manageable and that these recommendations would yield the desired result of increased new listings and investment demand for Singapore-listed equities.”

Pamela Chen (Left), Director, Head of Internal Audit, Sustainability & Climate Change, CLA Global TS
Maria Teo (Right), Associate Director, Sustainability & Climate Change Lead, Risk Advisory, CLA Global TS

“The Sustainability and Climate Change team is optimistic that in the Budget 2025, the Government will be actively working towards a greener future. With environmentally-friendly infrastructure in place, businesses will be better equipped to manage their climate risks, reduce their environmental impact, and meet the evolving expectations of stakeholders. This Budget could be a significant step forward in our collective efforts to create a more sustainable and resilient future for all.”

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