PM Lawrence Wong unveils bumper SG60 Budget for all Singaporeans
By Goh Yan Han, The Straits Times, 19 Feb 2025
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.”
MediSave top-up, CDC vouchers, LifeSG credits: Budget 2025 boost for families
By Syarafana Shafeeq and Ng Wei Kai, The Straits Times, 19 Feb 2025
Budget 2025 will introduce more support across the board, targeted at helping households cope with the cost of living.
On Feb 18, Prime Minister Lawrence Wong announced in his Budget speech measures to provide additional support for larger families, seniors, lower-income families and those with disabilities.
The Straits Times looks at what benefits Singaporean families will get.
For all households
1. $800 in CDC vouchers
All households will receive $800 in CDC vouchers, with $500 to be disbursed in May and the remaining $300 in January 2026.
2. More rebates for utilities
Eligible households living in Housing Board flats will receive up to $760 in U-Save rebates in financial year 2025 to offset their utility expenses.
The payments will be disbursed in April, July, and October 2025 and January 2026.
For all families
1. $500 in credits for each Singaporean child aged up to 12
Accessible through the LifeSG application, these credits can be used on household expenses such as groceries and utilities.
Children aged one to 12 in 2025 will receive them in July, while credits for those born in 2025 will be disbursed in April 2026.
2. $500 top-ups to Edusave or Post-Secondary Education accounts for older children
Students aged 13 to 16 will receive the top-up in their Edusave Account, while those aged 17 to 20 will receive it through their Post-Secondary Education Account.
The top-ups, which will be disbursed in July, support education-related expenses such as approved school fees and enrichment programmes.
3. Cheaper childcare
Full-day childcare fee caps will be reduced at government-supported pre-schools, lowering fees by $30 a month from 2026.
Fees will be capped at $610 for anchor operator centres and $650 for partner operator centres, down from the current $640 and $680 respectively. These pre-schools receive government funding to keep their fees low.
For families with three or more young children
Eligible parents with three or more children will receive additional support of up to $16,000 per child as part of the new Large Families Scheme.
1. Doubling First Step Grant
Parents will receive $10,000 through the Child Development Account (CDA) First Step Grant for their third and subsequent Singaporean child born from Feb 18 onwards.
This is double the $5,000 they already receive for every child.
The CDA can be used for approved expenses like pre-school fees and healthcare costs.
2. More MediSave top-ups
Parents will receive $5,000 through the mother’s MediSave account for their third and subsequent Singaporean child born from Feb 18 onwards.
This Large Family MediSave Grant can be used to offset the mother’s pregnancy and delivery expenses, as well as approved dependant’s medical bills and hospitalisation fees.
This new grant is in addition to the current MediSave grant for newborns, where up to $4,000 is given to each newborn’s MediSave account.
3. $1,000 a year in LifeSG credits until children turn six
Parents will receive $1,000 annually in Large Family LifeSG Credits for their third and additional Singaporean child.
Families that already have three or more children aged six and below in 2025 will also receive the $1,000 in credits every year for their third or additional children until they turn six.
Credits will be accessible through the LifeSG application, and can be used to help with household expenses like groceries and utilities.
The credits will be disbursed in September for eligible children turning one to six in 2025, and in April in following years.
For seniors
1. Cash matching for MediSave top ups from Jan 2026
For eligible seniors aged 55 to 70, the Government will match every dollar of voluntary cash top-ups to their MediSave accounts, capped at $1,000 a year.
The scheme will run for the next five years.
2. Upgrading programme extended to private property households
Seniors living in private property households will be able to benefit from a home upgrading programme from 2026 to 2028.
The Enhancement for Active Seniors programme, which is currently only for those in public housing, offers senior-friendly fixtures like ramps and grab bars.
3. Increase in Home Caregiving Grant
Seniors who need permanent assistance will receive up to $200 more in grants for caregiving needs, up from a cap of $400 currently.
For vulnerable families
1. Increase in ComCare assistance
Lower-income households will from April 2025 receive higher rates of temporary and long-term assistance to meet basic living expenses.
2. More support for families in rental flats to buy homes
More families with children living in public rental flats will be able to buy a new two- or three-room flat on a more affordable shorter lease.
Currently, only families who have already used one housing subsidy are eligible for such leases. The Fresh Start Housing Scheme will be extended to families who are first-time buyers, and grants for eligible families will increase from $50,000 to $75,000.
For people with disabilities
1. Matching retirement savings
A scheme helping Singaporeans with lower retirement savings will be extended to people with disabilities of all ages from January 2026.
The Matched Retirement Savings Scheme provides a dollar-for-dollar matching grant for cash top-ups made to the CPF Retirement Account, and currently only seniors aged 55 and above are eligible for it.
Now, those with disabilities who are under the age of 55 will receive the dollar matching for cash top-ups to their CPF Special Account.
2. Higher subsidies for adult disability services, more for those born in 1969 or earlier
Subsidy rates for adult disability services will be raised by up to 15 percentage points, with additional long-term subsidies for Singaporeans born in 1969 or earlier.
The subsidies will also be expanded to more households as the maximum qualifying per capita household income will be raised to $4,800.
3. Matching top-ups by caregivers
Lower- and middle-income caregivers who set aside money in trust accounts in the Special Needs Trust Company for their loved ones with a disability will get a dollar-for-dollar matching grant of up to $10,000.
Budget 2025: Singapore will study the potential deployment of nuclear power
By Shabana Begum, The Straits Times, 19 Feb 2025
Singapore will study the potential deployment of nuclear power here and take further steps to systematically build up capabilities in this area, Prime Minister Lawrence Wong said on Feb 18.
Noting that interest in nuclear energy is increasing worldwide, with several countries within the region planning to include nuclear in their energy mix, PM Wong said Singapore will need new capabilities to evaluate options and consider if there is a solution that the island-state can deploy in a safe, cost-effective way.
Malaysia and Indonesia, for example, have operated research reactors for some time, he noted.
“These capabilities will also be needed for nuclear safety, which will become more salient given the growing regional interest in nuclear power,” said PM Wong.
The Government will also pump in another $5 billion into its existing Future Energy Fund to support Singapore’s efforts to secure clean power, he said in his Budget speech.
“Be it electricity imports, hydrogen or nuclear, we will need to make major investments in new infrastructure,” added PM Wong, who is also Finance Minister.
The Future Energy Fund was announced during Budget 2024 with an initial $5 billion investment. It was set up to catalyse investments into clean energy technology that may involve high upfront costs and significant commercial, technological and geopolitical risks.
The fund is part of Singapore’s efforts to address its resource constraints.
PM Wong cited how the Republic overcame its water challenges through innovations such as recycling used water to form Newater, and building up its water industry.
“Today, we face a different challenge. The industries of the future – artificial intelligence, semiconductors, biopharmaceuticals – are highly energy-intensive. To meet these growing energy needs and to bring down our carbon emissions at the same time, we will need more clean power,” he said.
“Expanding access to clean energy is therefore a major national imperative.”
Singapore has not made a decision to adopt nuclear energy. But given that the Republic has limitations in accessing renewable energy, nuclear is among various low-carbon sources that the country is looking into amid considerations of the nation’s energy security, affordability and carbon footprint.
“Our options are inherently limited because we do not have the natural resources nor the land to meet our needs using hydro, wind or solar power,” PM Wong said.
Singapore now relies on natural gas, a fossil fuel, for some 95 per cent of its energy needs. The power sector contributes about 40 per cent of the country’s total emissions.
Achieving Singapore’s long-term climate target of reaching net-zero emissions by 2050 would require reducing carbon emissions from this sector.
On Feb 10, the Republic published its 2035 climate target – to reduce its emissions to between 45 million tonnes and 50 million tonnes, down from the 60 million tonnes it expects to emit in 2030.
PM Wong said that while Singapore had earlier assessed that conventional nuclear technologies were not suitable for Singapore, the country had continued to keep a close watch on developments in this space to keep its options open.
“Since then, we have seen significant advancements in nuclear technologies,” he added, citing small modular reactors (SMRs) as one advanced nuclear technology that has better safety features than conventional, large plants.
SMRs are compact systems that can be factory-assembled and installed in dense urban areas. The power capacity of one SMR is about a third of that of a traditional reactor.
PM Wong added that a few SMRs have been deployed elsewhere, and more could become operational by the end of the decade.
Over the past couple of years, Singapore’s exploration of nuclear energy has been hotting up.
It started around 2022, when a local report on future energy scenarios mentioned that emerging energy technologies, including nuclear and geothermal, could potentially supply around 10 per cent of Singapore’s energy needs by 2050.
In July 2024, the Republic inked the 123 Agreement on Nuclear Cooperation with the US, which will allow Singapore to learn more about nuclear technologies and scientific research from American organisations.
PM Wong noted that Singapore is working on similar cooperation with other countries that have capabilities and experience in civilian nuclear power, particularly SMRs.
In the nearer-term, PM Wong said one immediate solution to green the country’s energy mix is to import low-carbon electricity from the region, and the Republic has been progressing on this front.
Singapore has inked deals with Indonesia, Cambodia and Vietnam to import 5.6 gigawatts of low-carbon electricity by 2035, and much of the green electricity is expected to come from solar, hydropower and wind.
Under a pilot that was expanded in 2024, Singapore is importing hydropower from Laos via Thailand and Malaysia. In late 2024, it was said that additional energy supply will come from Malaysia, increasing the total electricity import capacity to 200MW from 100MW. Malaysia’s grid comprises coal and natural gas.
“By 2035, we expect that about one-third of our projected electricity demand can be met through electricity imports,” said PM Wong.
On low-carbon hydrogen – an emerging fuel that does not produce planet-warming emissions when burned – PM Wong said that Singapore has been closely evaluating its use.
But there are inherent challenges in its production, storage and transportation, he said, which makes it hard to scale up in a commercially viable manner.
Budget 2025: Eligible families in rental flats to get higher grant of $75,000 for BTO purchase
By Isabelle Liew, The Straits Times, 19 Feb 2025
Families with children living in rental flats will get a higher grant when they buy a two-room flexi or three-room Build-To-Order (BTO) flat, while eligible families who are first-time home buyers will be allowed to purchase shorter-lease flats.
These measures are meant to help lower-income and vulnerable families that face more challenges, Prime Minister and Finance Minister Lawrence Wong said in his Budget speech on Feb 18.
Under the enhanced Fresh Start Housing Scheme, eligible families who are second-time home buyers will get $75,000 in grants to buy two-room flexi or three-room Standard flats on a shorter lease. This is up from the current grant of $50,000.
Standard flats were offered in towns such as Woodlands, Yishun, Bukit Batok and Sengkang in recent launches. They form the bulk of housing supply and come with a five-year minimum occupation period (MOP), without other restrictions upon resale.
Plus and Prime flats, which are in more attractive locations, come with a subsidy clawback clause and a 10-year MOP.
The Fresh Start Housing Scheme was launched in 2016 to help families with at least one child below age 18 and that had bought a subsidised Housing Board flat previously.
To make the homes more affordable, two-room flexi and three-room flats are offered with leases of 45 to 65 years in five-year increments, as long as the lease can cover the youngest applicant up to age 95.
PM Wong said the scheme will also be extended to first-time home-buying families with children who are living in public rental flats to allow them to buy a two-room flexi or three-room Standard flat on a shorter lease.
He said these first-timer families typically face more significant challenges in life, such as coping with medical issues in the family or raising children as a single parent.
“Hence, they may have difficulties buying a flat with a full 99-year lease, even as first-timers,” the Prime Minister noted.
First-timer families will not be eligible for the $75,000 grant, but can tap the Enhanced CPF Housing Grant, which disburses up to $120,000, The Straits Times understands.
Flats sold under the Fresh Start Housing Scheme have a 20-year MOP to ensure a stable home for the families and children.
PM Wong said the authorities will do more to support efforts by lower-income and vulnerable families to “achieve stability, self-reliance and mobility”.
More information on the enhanced Fresh Start Housing Scheme will be made public during the debate on the Ministry of National Development’s budget.
Cafe manager Nur Suhaila, who lives in a two-room rental flat in Telok Blangah, is unsure if she qualifies for the scheme, but said the $75,000 grant could go a long way in helping her family of seven afford a home.
“I have been wanting to buy my own home since 10 years ago, but I have a big family and our savings tend to go towards our five kids,” said the 42-year-old, whose children are between 12 and 24 years old.
She added that fights among other residents constantly broke out at the rental block in Henderson, where her family previously lived, and that she wants to provide a better environment for her children.
“The situation is better in Telok Blangah, but I want to own my own place, instead of paying rent monthly,” said Ms Suhaila, who has been living in rental flats since 2012.
On Feb 18, PM Wong said the ComLink+ scheme, which was rolled out in 2024, is another initiative that provides vulnerable families with more customised support.
Under the initiative, family coaches and volunteers work with low-income families with children living in HDB rental flats to set targets for nearer- and longer-term goals, such as getting a job and saving for a home.
As the families work towards their home ownership and employment goals, they will receive Central Provident Fund and cash payouts capped at a total of $30,000.
Budget 2025: Families with three or more young children to receive more financial support
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By Theresa Tan, The Straits Times, 19 Feb 2025
Families with three or more young children will get more financial benefits and support as part of new measures to encourage Singaporeans to have more children.
Prime Minister Lawrence Wong announced in his Budget speech on Feb 18 a slew of measures for large families, which will get up to $16,000 in additional support for each third and subsequent child born on or after Feb 18.
“Couples with more children often worry about additional costs because the demands grow with each additional child,” he said.
“We will introduce a Large Families Scheme to support married couples who have, or aspire to have, three or more children.”
The first part of the new scheme is the Child Development Account (CDA) First Step Grant, where baby number three, four or more born from Feb 18 can get $10,000, up from the current $5,000 all Singaporean children receive.
The funds can be used by parents for pre-school and healthcare expenses incurred by the child or his or her siblings.
Parents will also get $5,000 with the Large Family MediSave Grant for each third and subsequent Singaporean child born from Feb 18. This will be credited into the mother’s MediSave account, which can be used to offset pregnancy and delivery-related expenses, as well as approved dependants’ medical bills.
This is on top of the $5,000 MediSave Grant that all Singaporean children already get when they are born.
Finally, $1,000 in Large Family LifeSG Credits will be given each year to the third and subsequent child during the years that the child turns one to six. These credits can be used to defray a wide range of household expenses, such as grocery, utilities and transport bills.
Existing large families with at least one child aged six or below – those born between Jan 1, 2019, and Feb 17, 2025 – will also receive the $1,000 each year in Large Family LifeSG Credits, until the child turns six. This applies only for the third and subsequent Singaporean child.
In his speech, PM Wong cited several families which will benefit from the support measures, including the family of Mr Mageswaran Mervin and Madam Elizabeth Davaraj.
The couple, who have four children turning one, four, seven and eight in 2025, will receive $11,000 in benefits from this Budget. Apart from $500 in LifeSG credits for each child, they will get $1,000 annually in Large Family LifeSG Credits for each of their third and fourth children, up to when they turn six, said PM Wong.
Another couple, Mr Joel Seah and Ms Kristen Kiong, have two girls turning three and five, and are expecting their third child, a boy, in May. They will get $17,500 in total as a family, said PM Wong. This figure comprises the additional $16,000 for their third child, and $1,500 in LifeSG credits across the three children.
Ms Kiong, 36, who works as an allied healthcare worker, said she is happy with the financial help to transition to a bigger family.
“With every additional child, there is an extra child-caring burden, which often means engaging more help, or scaling back in the workforce.”
On what she likes about having a large family, she said: “It is nice to see them grow up together, and I am hoping in their older years they would have each other as company, especially when we are gone.”
PM Wong first mentioned that more help would be given to large families during the National Day Rally in 2024, adding that details were being worked out then. The Large Families Scheme will cost the Government around $80 million a year.
Singapore’s total fertility rate (TFR) fell to a record low of 0.97 in 2023. The TFR, which refers to the average number of babies each woman would have during her reproductive years, fell to below 1 for the first time in Singapore’s history.
According to Department of Statistics figures, the number of women who have three or more children at the end of their childbearing years fell in the past decade.
In 2024, 18 per cent of resident ever-married women in Singapore aged 40 to 49 had three or more children. This was down from 24 per cent in 2014.
The new scheme for large families comes on top of a host of initiatives to promote parenthood in the past few years, such as the larger Baby Bonus cash gift and the new Shared Parental Leave, which will start from April 1.
The Government will also support all families with the cost of raising children with one-off top-ups to various accounts, said PM Wong.
Each Singaporean child from newborn to 12 will get $500 in Child LifeSG Credits, regardless of birth order. This means that all children, including first- and second-born children, will get this credit, which can be used to defray household expenses.
About 455,000 children are expected to benefit from these credits, which will be disbursed in July 2025 for those aged up to 12 in 2025. Those born in 2025 will get the credits in April 2026.
Each Singaporean child aged 13 to 16 will get a $500 top-up to their Edusave Account, and each Singaporean child aged 17 to 20 will get a $500 top-up to their Post-Secondary Education Account.
These top-ups, which will be disbursed in July 2025, are expected to benefit about 300,000 students across both age groups.
Additional reporting by Shermaine Ang
Budget 2025: More help for seniors, including those living in private property
By Salma Khalik, The Straits Times, 19 Feb 2025
Seniors will get more help to outfit their homes with age-friendly features, pay for their medical needs and receive higher subsidies should they require long-term care.
Prime Minister Lawrence Wong announced on Feb 18 that the Enhancement for Active Seniors (Ease) programme, which till now was limited to HDB dwellers, will be extended to seniors living in private property – for three years, up to 2028.
Under the scheme, the Government subsidises a range of fittings to make homes safe places for seniors aged 65 years and older. They include grab bars, wall-mounted foldable shower seats and slip-resistant treatment to existing flooring.
The amount HDB residents pay depends on the house type. MND will release more information on the amount private property owners will have to pay later.
“Our priority is to empower our seniors to stay active and healthy,” said PM Wong, who is also Finance Minister. “Our plans include creating a more conducive living environment for our seniors.”
As older people tend to spend more on healthcare needs, eligible lower-income seniors aged 55 to 70 who make voluntary contributions to MediSave will have their contributions matched dollar-for-dollar, capped at $1,000 a year. This scheme will be in place for five years.
To qualify, they should have an average monthly income of $4,000 or less, own no more than one property with an annual value of $21,000 or less, and have a MediSave balance of less than half the Basic Healthcare Sum, which stands at $75,500 in 2025.
This scheme complements the existing Matched Retirement Savings Scheme, where the Government matches the cash top-ups made to Retirement Accounts with less than $106,500.
In 2025, the matching grant cap was raised from $600 to $2,000, subject to a lifetime cap of $20,000. Top-ups that get the matching grant are not eligible for tax relief. The upper age limit has also been removed, so now the scheme is open to people aged 55 years and older.
“The contributions from both the Government and their loved ones will better support their retirement and healthcare needs, and give them greater assurance as they age,” said PM Wong.
There will also be more help for frail and ill seniors who require long-term care, with government subsidies increasing by up to 15 percentage points for those born after 1969. The subsidy now ranges from 20 per cent to 80 per cent for eligible citizens and 10 per cent to 55 per cent for eligible permanent residents.
For citizens born in 1969 or earlier, subsidies will increase by up to 20 percentage points for residential long-term care services and by up to 25 percentage points for home and community services. For citizens born after 1969, subsidies will increase by up to 15 percentage points for residential long-term care services and by up to 10 percentage points for home and community services.
The maximum qualifying per capita household income will go up from $3,600 to $4,800.
The Government will also be giving higher cash grants to offset daily care costs for people who are supporting seniors at home. This goes up from $400 to $600 a month. The qualifying per capita household income will also be raised to $4,800.
At least 80,000 seniors will benefit from the enhanced long-term care subsidies and grants, which will cost the Government around $300 million in financial year 2026, and more in future years, as the population continues to age.
PM Wong said: “With a rapidly ageing population, we have to work hard to manage the increases in long-term care costs, and ensure a good mix of funding support between individual co-payment, government subsidies and insurance.”
The Health Ministry will be expanding on this during the upcoming debate on the ministry’s budget.
Budget 2025: People with disabilities to get extra help to secure jobs
By Shermaine Ang, The Straits Times, 19 Feb 2025
More is being done to help people with disabilities get jobs after they turn 18 and graduate from special education schools.
Under Budget 2025, employers will get more support to offset the wages of people with disabilities, with the Enabling Employment Credit extended till end-2028.
The scheme, originally set up to run from 2021 to 2025, provides up to 20 per cent wage support for workers with disabilities earning below $4,000 per month. This is capped at $400 a month per worker.
Companies that hire people with disabilities who have not been working for at least six months get an extra 20 per cent in wage offsets, capped at $400 a month per worker for the first nine months.
In his Budget speech on Feb 18, Prime Minister Lawrence Wong noted that the Government’s investments in early intervention and special education have laid “good foundations” in supporting people with disabilities.
But many parents worry about what happens after their children turn 18 and graduate from the structured environment of a special education school, he said.
PM Wong said those progressing to work may need more support to build up their work readiness and adjust to their workplace.
He cited the experience of Ms Sharlyne Lee, who graduated from St Andrew’s Autism School in 2021.
Ms Lee, 21, underwent three months of employment training in housekeeping and soft skills under SG Enable’s School-to-Work Transition Programme in 2022.
The programme helped her to secure a nine-month internship at Lee Ah Mooi Old Age Home as a general housekeeping assistant. At the end of the internship, Ms Lee was offered full-time employment.
Ms Lee said the programme helped her build skills such as sanitising and cleaning surfaces, as well as in interpersonal communication.
Her job coach and supervisor created work schedules and visual cues to help her understand the work.
The job coach also worked with Ms Lee’s parents to help Ms Lee practise her tasks at home and regulate her emotions.
Ms Lee, whose responsibilities include preparing food and doing laundry, said: “I am happy and proud to be able to contribute to taking care of the residents.”
PM Wong added: “We will also do more for those with higher care needs, who need a more structured environment beyond school to stay active.”
He said the issue of post-18 pathways will be studied “comprehensively” with stakeholders in a “multi-year endeavour”, with more details to be given during upcoming debates on the various ministries’ budgets.
People with disabilities will also get higher subsidies for adult disability services, with the Government to raise the maximum qualifying per capita household income so more people can get these subsidies.
The Matched Retirement Savings Scheme will also be expanded to include eligible Singaporeans with disabilities of all ages to help them save for retirement early.
This scheme currently provides a dollar-for-dollar matching grant for cash top-ups made to seniors’ Central Provident Fund Retirement Accounts, up to a cap of $2,000 per year.
For lower- and middle-income caregivers of people with disabilities, the Government will also provide a dollar-for-dollar matching grant for top-ups to their trust accounts with the Special Needs Trust Company (SNTC), up to $10,000.
This is to encourage families to plan ahead for their child’s future care needs, said PM Wong.
SNTC is the only non-profit organisation set up to provide trust services for persons with disabilities. It is supported by the Ministry of Social and Family Development.
PM Wong said the Government is taking concrete steps to strengthen Singapore’s social support system.
“In this Budget, l have focused on families, seniors and their long-term care needs, and persons with disabilities. But we will continue to review and update other policy areas over time,” he said.
“This is the Government’s key priority. Because we want to build a Singapore where we have each other’s backs, where no one is left behind, and we continue to stay strong and united as one people.”
Budget 2025: Govt revenue in FY2024 lifted by various taxes, clocks $6.4 billion surplus
By Claire Huang, The Straits Times, 19 Feb 2025
Singapore’s national coffers have been boosted by better-than-expected revenue in fiscal year (FY) 2024, led by the jump in corporate income tax, Prime Minister and Finance Minister Lawrence Wong said in his Budget speech on Feb 18.
The Ministry of Finance (MOF) said firms paid more in corporate income tax, which was up 6.5 per cent year-on-year to $30.9 billion in FY2024. This is up from the estimated $28 billion.
The higher collection helped improve Singapore’s fiscal position, from an overall Budget deficit of $2.6 billion in FY2023 to a surplus of $6.4 billion in FY2024, which is about 0.9 per cent of gross domestic product (GDP).
Corporate income tax collection is estimated to hit 4.1 per cent of GDP in FY2024, higher than the usual 3.2 per cent in past years.
PM Wong said the larger amount of corporate income tax collected is due to several reasons, including industry-specific cyclical factors in finance and wholesale trade, as well as possible changes in investment decisions of multinational enterprises as they seek stable centres like Singapore for their high-end activities.
Calling it an unexpected change, he said corporate income tax is now the single largest contributor to total revenue, even higher than the Net Investment Returns Contribution (NIRC), which came in at $24 billion in FY2024. In FY2023, it was $23 billion.
Another key contributor to revenue was the amount collected in goods and services tax (GST) that rose 23.8 per cent year-on-year to $20.6 billion in FY2024. MOF said this was due to stronger-than-expected growth in private consumption.
PM Wong said that in this term of government, several changes were made to Singapore’s tax system, including the GST rate increase.
He said the increase in GST rate, which went up to 9 per cent in 2024 from 8 per cent in 2023 and 7 per cent in 2022, ensures the Government has the revenues to look after the growing number of seniors, even as healthcare costs go up.
The impact of the GST increase has been cushioned and delayed via the Assurance Package for the majority of Singaporean households, PM Wong said, adding that the GST system is designed with permanent GST vouchers.
This ensures that lower-income households pay a far lower effective GST rate than higher-income ones, he said.
Personal income tax collected came up to $19 billion in the same period, up 8.3 per cent, due to better nominal wage growth.
“While our revenues have increased, we have also spent more on Singaporeans. For example, we provided $3 billion in MediSave top-ups in December last year, which will help to cushion the increases in MediShield Life premiums to fund better coverage and higher payouts,” PM Wong said.
He added that resources have been earmarked for projects to boost economic competitiveness, such as developing critical infrastructure like Changi Terminal 5 and for energy transition.
For FY2025, the Prime Minister expects a similar fiscal position, with a surplus of $6.8 billion. This is 0.9 per cent of GDP.
“There could be some additional corporate income tax revenue from FY2027 onwards, with the implementation of the domestic top-up tax, which will raise the large multinational enterprises’ (MNE) effective tax rate to 15 per cent.
“But how much revenue we will get from this change depends on whether these MNEs continue to find it attractive to remain in Singapore,” PM Wong said.
In his speech, PM Wong also said that Singapore’s tax system will continue to ensure fairness and improve progressivity, with those who are better off paying more in taxes to help those who are not.
It is why Singapore’s property tax rates were raised for all non-owner-occupied residential properties. These are properties that are mainly for investment, and higher-value residential properties occupied by owners.
These changes coincided with a sharp increase in annual values of properties, which went up because of supply constraints led by the pandemic.
So, the Government has revised and updated the annual value bands of property tax rates for residential properties that are owner-occupied. The move allows more homes to fall within bands of lower tax rates.
In addition, the Government has also provided property tax rebates. For instance, in November 2024, it announced another rebate of up to 20 per cent for owner-occupied residential properties in 2025, capped at $1,000.
In all, PM Wong said all HDB owner-occupiers and more than 90 per cent of private residential properties that are owner-occupied will see lower property taxes in 2025.
PM Wong also warned that there is considerable uncertainty about how government revenues will be in the coming years, especially given the current great uncertainty about the global tax environment after the US went back on earlier consensus achieved by the Organisation for Economic Cooperation and Development (OECD) and other countries.
American President Donald Trump in late January declared that the global corporate minimum tax deal “has no force or effect” in the US, effectively pulling out of the agreement.
In its outlook for FY2025, MOF projected corporate income tax collections to grow by 5.8 per cent to $32.7 billion, due to strong economic growth in 2024.
Collections from personal income tax and GST are also expected to grow.
Along with this trend, expenditure in FY2025 is also expected to go up, in areas like healthcare and for the Defence Ministry to ramp up critical projects.
The estimated FY2025 NIRC is $27.1 billion, about 12.9 per cent higher than FY2024.
PM Wong noted that MOF’s projection for government spending to increase to around 20 per cent of GDP by 2030 still stands.
Government expenditure has risen from $75.3 billion in FY2019 to $112.9 billion in FY2024. It is estimated to go up to $123.8 billion in FY2025.
PM Wong said the Government will continue to monitor fiscal trends closely, spend responsibly and ensure all Singaporeans benefit from the nation’s progress.
Budget 2025 to see 9.6% rise in ministries’ expenditure
By Sheila Chiang, The Straits Times, 19 Feb 2025
Prime Minister Lawrence Wong on Feb 18 unveiled a bumper Budget providing additional support for Singaporeans to tackle the uncertainties ahead.
PM Wong, who is also Finance Minister, announced a $143.1 billion Budget to tackle cost pressures and equip workers throughout life. Budget 2025 also included measures to encourage economic growth and sustainability, and nurture an inclusive society.
It is expected to be an increase in expenditure of 6.6 per cent from the 2024 Budget, with all Singaporeans expected to benefit. This includes $123.8 billion in expenditure by the various ministries, a 9.6 per cent increase from ministries’ spending in financial year (FY) 2024.
Expenditure by the Health Ministry is expected to surge by $2.9 billion, or 16.3 per cent year over year, mainly due to higher support for public healthcare institutions, implementation of Age Well SG programmes, higher operating costs with new and expanding healthcare institutions, as well as the construction of major healthcare facilities.
Defence Ministry expenditure is expected to increase by $2.6 billion, or 12.4 per cent, as the Government accelerates projects such as the NS Square, a facility for large-scale events and the National Day Parade.
Special transfers to households are estimated to add up to $3.4 billion in Budget 2025. A total of around $2 billion for SG60 vouchers, $1.1 billion for CDC vouchers, and $400 million for other transfers such as U-Save rebates and top-ups to Edusave and Post-Secondary Education accounts are expected.
Special transfers to businesses are estimated to be $300 million, mainly from a corporate income tax rebate cash grant.
The Changi Airport Development Fund, the Coastal and Flood Protection Fund and the Future Energy Fund will each get a $5 billion top-up.
The National Productivity Fund will be expanded by $3 billion to boost investment promotion efforts, while the National Research Fund will receive $1.5 billion to support continued investments in research, innovation and enterprise.
To fund these measures, corporate income tax collections are estimated to increase by $1.8 billion, or 5.8 per cent, to $32.7 billion due to strong economic growth in 2024. Personal income tax collections are projected to rise by $1.3 billion, or 6.7 per cent, to $20.2 billion due to strong nominal wage growth in 2024. Goods and services tax collections are expected to increase by $1.1 billion, or 5.5 per cent, to $21.7 billion from growth in private consumption. Collections from other taxes, which include the foreign worker levy and water conservation tax, are also expected to rise.
As a whole, PM Wong expects to end FY2024 with a surplus of $6.4 billion, or 0.9 per cent of gross domestic product (GDP). The surplus is much higher than the $800 million initially projected for the year, and reverses a deficit of $2.6 billion in FY2023.
PM Wong is expecting another surplus, amounting to $6.8 billion, in FY2025.
“Meanwhile, we are certain that expenditure will continue to rise. Government spending has been rising steadily over the years from about 15 per cent of GDP to about 18 per cent,” said PM Wong, adding that spending could go up to 20 per cent of GDP by around 2030.
“With growing global uncertainties and the need to invest more in our workers and better support our rapidly ageing population, there will be added pressure to raise spending – possibly at a pace that exceeds previous increases,” said PM Wong, noting that the Government will spend responsibly and ensure resources are allocated effectively.
“Ultimately, we will always ensure that all Singaporeans benefit from the nation’s progress.”
Budget 2025: Putting steel behind Forward SG’s ‘leave no one behind’ creed
PM Wong signals that remaking our social compact is woven into policymaking – but citizens must temper expectations, as generous aid isn’t permanent.
By Bhavan Jaipragas, The Straits Times, 19 Feb 2025
Truth be told, in June 2022, when Prime Minister Lawrence Wong – then barely weeks into his deputy prime ministerial tenure – first unveiled plans for the Forward Singapore exercise, the vision seemed somewhat nebulous.
Laden with inspiring credos, it aimed to recast our social compact: making our meritocracy more open and compassionate, ensuring no Singaporean is left to fend for themselves in hard times, all while spending in a sustainable way that preserves today’s fiscal resources for future generations.
These ideals struck a chord – even as sceptics (this columnist included) questioned how they would translate into policy. And when Mr Wong ascended to the prime ministership, could he secure the funds for what, in 2022, appeared a costly yet indispensable endeavour?
Fast forward 33 months – with Budget 2025, the second annual plan to incorporate the Forward Singapore agenda – the initiative is steadily taking shape through concrete policies and robust fiscal backing. In 2024’s Budget, the “first instalment” of Forward Singapore measures – projected by the Ministry of Finance to cost some $40 billion by the decade’s end – focused substantially on supporting middle-aged workers in a volatile job market.
Budget 2025 not only sustained that focus but also advanced another crucial element: extending greater social support to the most vulnerable, including those who have stumbled and need a helping hand.
Yes, the Budget was pitched as one for “all Singaporeans”, as Mr Wong declared – a sentiment echoed by commentators scrutinising the $143.1 billion spending plan. Yet the deeper argument is unmistakable: When the state wields abundant largesse, it must prioritise those most in need.
“No one is left behind,” Mr Wong repeated twice, and here that promise is far from empty rhetoric. It is a deliberate, measured effort – a mission conceived nearly three years ago that is now being built out with meticulously costed and funded policies.
In Singapore, we tend to take our Government’s ability to deliver on promises for granted, yet such capacity is increasingly rare in a world awash with leaders who offer platitudes but struggle to execute.
Help for those who need it
Take, for example, the extension of the Uplifting Employment Credit – a policy that may not grab headlines like the SG60 vouchers or new large family measures, yet is undeniably significant. Introduced in 2023 as a wage offset scheme to support employers hiring ex-offenders earning below $4,000 (and released within three years prior to employment), the credit is now extended for a further three years until 2028. Mr Wong noted in his Budget statement that the scheme assisted nearly 700 employers in hiring more than 1,500 ex-offenders in 2024. This is not posturing; it’s a tangible signal that the Government is committed to helping Singaporeans rebound when setbacks occur.
Of course, this is only part of the equation. As my Straits Times colleague Syarafana Shafeeq reported in December 2024, even with improved employment opportunities, social stigma and personal challenges continue to hinder the re-integration of many ex-offenders. It is a stark reminder that, potent as government policy and spending may be, refreshing our social compact requires a profound shift in mindset – a point Mr Wong has hammered home since his June 2022 speech.
Another area where early abstractions of the Forward Singapore agenda have crystallised into concrete policies is in support for persons with disabilities and vulnerable families. For instance, in this Budget, the Enabling Employment Credit – which provides a wage offset to incentivise employers to hire persons with disabilities – is extended to 2028 (originally set to run from 2021 to 2025), offering continued support to employers concerned about the costs and effort needed to redesign jobs and adapt workplaces for employees with disabilities.
In addition, subsidy rates for adult disability services are set to rise, and the maximum qualifying household income for these subsidies will be increased, broadening the support net. An expansion of the Matched Retirement Savings Scheme for eligible Singaporeans with disabilities further reinforces financial security in later years. Matching grants for top-ups by caregivers to trust accounts with the Special Needs Trust Company also help alleviate anxieties about future care costs and financial management when they pass on.
For vulnerable families, there are enhanced measures, including an expansion of the Fresh Start Housing Scheme. Originally launched in 2016, the scheme helps families who once owned a flat and are now transitioning from public rental flats to home ownership. Under the enhanced scheme, eligible second-time home buyers can now receive a $75,000 grant for two-room Flexi or three-room Standard flats on shorter leases, up from $50,000, making the path back to home ownership easier.
First-time families with children living in public rental flats – many of whom, as Mr Wong noted, face challenges such as medical issues or single parenthood – will also receive help overcoming the difficulty of purchasing a full 99-year lease flat. These families are now eligible to buy subsidised shorter-lease flats through the Fresh Start Housing Scheme.
Taken individually, these policies might seem like an alphabet soup of measures, likely lost in the noise of bigger-ticket spending items. But together, they reveal a coherent, steadily built Forward Singapore blueprint – a progression of efforts combining fresh ideas on social support from the 2022-2023 national engagement exercise with enhancements to longstanding initiatives from Senior Minister Lee Hsien Loong’s prime ministership from 2004 to 2024.
We are witnessing a real-time transformation: an abstract vision being forged into tangible policies through a deliberate, measured process. From initial concept to detailed blueprint, from costed policies to anticipated real-world impact, this is a vision evolving before our eyes. As these measures continue to be refined and expanded, the effect is unmistakable – government spending is increasingly targeted at those who need it most. This is not mere box-ticking; it is the right, fiscally sustainable approach – exactly as Mr Wong conveyed when first outlining the thinking behind the Forward Singapore initiative in 2022.
Look around you
Not to gratuitously praise state largesse, but Singaporeans who catch only snippets of these developments should recognise the serious spending behind these social support schemes.
On top of disbursements aimed at boosting growth, supporting companies navigating shifting trade winds, and easing cost-of-living pressures, there is genuine fiscal capacity – cash to spare – to invest in those who need it most. This is, in fact, rare, and we must acknowledge that. Look around: many governments are increasingly forced into invidious choices between funding growth, paying for defence in a more dangerous world, and containing ever-rising social spending.
For instance, British politics offers a cautionary tale – there is growing talk that Britain’s embattled Chancellor Rachel Reeves faces the prospect of cutting public spending or raising taxes in the coming months after a private warning from the fiscal watchdog about a weaker economic outlook. In some neighbouring countries, genuine intent to do more for the vulnerable is hampered by insufficient fiscal headspace – forcing governments to make painful trade-offs, from scrapping infrastructure projects to reducing office supplies and even curbing air-conditioner use, all to free up funds for social spending.
We are in a very different position. Singapore possesses the firepower to spend on immediate social needs while strengthening its social capital – in other words, building a “Singapore where we have each other’s backs,” as Mr Wong put it in his Budget speech.
Managing expectations
What is the upshot then? For citizens – not just for the vulnerable who rely on this Budget’s aid, but also for the majority who enjoy extra spending power, such as that provided by the SG60 vouchers – it bears recalling Mr Wong’s words from the 2024 inaugural Forward Singapore spending plan. He warned that improving our shared well-being would be impossible without growth: “We will have no chance of improving our collective well-being. Singaporeans’ living standards will be dented. We will not be able to afford the social services we need. And in the end, lower-income workers and families will be hit the hardest.”
This is why Singaporeans must support pro-growth policies – investments in our technology and innovation sectors, such as biotech and semiconductors, as reflected in this Budget, and in attracting the top-tier talent essential for these industries. With the growth this spurs, the Government can and should spend more in good times, as evidenced by the unexpected bounty from corporate tax income this time around.
However, managing expectations is crucial: our ability to redistribute generously during prosperous periods is not guaranteed indefinitely. The SG60 goodies, it must be noted, come after a year when the Singapore economy exceeded expectations by expanding 4.4 per cent. The Ministry of Trade and Industry has already flagged downside risks for 2025, citing risks of escalation in geopolitical conflicts and increased uncertainty over US policies under President Donald Trump, with a revised growth forecast of 1 to 3 per cent. Therefore, in leaner times, additional measures may be necessary for the most vulnerable, but we cannot assume that such expansive handouts will always be on offer.
From the Government’s standpoint, it of course faces punditry that the generosity of this Budget is linked to the looming election. The rejoinder should be: So what? Any leader seeking re-election would relish the chance to use fiscal firepower to help individuals and families, boost innovation, and invest in infrastructure with long-term benefits. Public finances remain sound and healthy, and as Mr Wong stated, the Government is “spending prudently to meet our immediate and future needs, ensuring that our revenues cover expenditures, and keeping the tax burden as low as we can, while not burdening Singaporeans with debt”.
That the Forward Singapore initiative is now hardwired into policy and budgetary planning just three years after Mr Wong’s June 2022 speech is indeed admirable. But beyond building out this initiative, the Government must also temper citizens’ expectations about handouts. While today’s state largesse is the result of sound fiscal management and a strong commitment to remaking our social compact, such generosity cannot always be taken for granted as we enter this new era of likely entrenched global economic uncertainty.
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