BUDGET 2025: PM Wong announces additional support ‘as long as it’s needed’ as Singaporeans face higher costs of living

SINGAPORE: Unveiling the 2025 Budget on Tuesday (Feb 18), Prime Minister Lawrence Wong acknowledged that many Singaporeans face higher living costs and assured that the Government will provide additional support “as long as it’s needed… within our means”.

Last year, the Government announced a $1.9 billion enhancement to the Assurance Package for the same reason – to help the people.

Mr Wong, also the Finance Minister, said the Singapore economy performed beyond expectations in 2024 and grew by 4.4 per cent.

However, as he noted, the sobering reality is that Singaporeans are still dealing with higher prices of goods largely due to global events and inflation is expected to range from 1.5 to 2.5 per cent.

The economic problems are not insurmountable, though. Help is at hand.

“Budget 2025 is for all Singaporeans, shaped together with all Singaporeans. We will work with you to: tackle cost pressures; advance our growth frontier; equip workers throughout life; build a sustainable city; nurture a caring and inclusive society; and rally as one united people,” the Prime Minister said.

Among the additional support measures he announced are the following:

• Each Singaporean household will receive $800 in CDC vouchers
• HDB households will receive U-Save between $440 to $760
• Top-ups of Child LifeSG Credits for all Singaporean children from the age of 12 and below of $500
• Top-ups to Edusave Accounts or Post-Secondary Education Accounts (PSEA) for all Singaporean children from the age of 30 to 20 of $500

PM Wong affirmed that the Government will ensure public housing remains affordable and accessible to all, noting that the supply of Build-to-Order (BTO) units has been ramped up. The problem of long waiting times for new homes will be mitigated – around 20 per cent of the new housing supply will have a waiting time shorter than three years.

As for Singaporeans purchasing resale homes to bypass extended waiting periods for new flats, the Prime Minister acknowledged that resale flats often have higher prices. He assured that the Government will work towards stabilizing these prices.

The Prime Minister also announced measures to help firms manage business costs, including a 50 per cent corporate tax rebate for 2025 and a minimum benefit of $2,000 for active companies with at least one Singaporean worker in 2024. The benefits for these companies will be capped at $40,000. He also said that the co-funding levels for the Progressive Wage Credit Scheme would be raised in 2025 and 2026.

“The global economic competition is intensifying and we cannot afford to stand still. We must redouble efforts to grow our economy and keep it dynamic and vibrant,” said Mr Wong.

Featured image above: YouTube screengrab/CNA /TISG

Read also: Singapore Budget 2025: Game-changing reforms set to transform workforce, cut costs, and propel sustainability into the future