In the spirit of SG60, Singapore Budget 2025 stands out as a forward-looking and comprehensive framework that balances immediate needs with strategic investments to propel long-term growth. Beyond its thoughtful and fiscally prudent approach, the budget underscores the pivotal role of technology and innovation in shaping Singapore’s economic progress. By prioritising advancements in infrastructure, exploration of new energy solutions, and climate resilience, Budget 2025 positions Singapore as a global value creation hub. Its focus on fostering leadership in technology and sustainability reaffirms the nation’s ambition to remain a leader in these critical areas, driving competitiveness and creating lasting economic impact for future generations.
Ajay Kumar Sanganeria
Partner & Head of Tax
KPMG in Singapore
The 15 percent global minimum tax under BEPS Pillar 2 makes traditional tax incentives less effective for attracting investments. To compete, countries across the region have created non-tax incentives such as cash grants and subsidies as alternatives to attract foreign investment. This includes Thailand’s Competitiveness Enhancement Fund and Vietnam’s Investment Support Fund (ISF). The S$3 billion top-up to the National Productivity Fund announced in Budget 2025 – building on top-ups in previous years - is a welcomed move, allowing Singapore to offer cash grants and investment credits to remain competitive and attract investments.
Harvey Koenig
Partner, Energy & Natural Resources, Tax
KPMG in Singapore
Growing the liquidity and scale of the Singapore public capital markets is a key part of growing Singapore’s relevance as a global and regional financial hub. We welcome this initiative that may support this goal and also support the success of home-grown businesses.
Andrew Thompson
Partner, Head of Private Equity, Asia Pacific
KPMG in Singapore
The S$5 billion top-up to further develop Singapore's airport demonstrates the Government’s commitment to investing in world-leading infrastructure. This investment reinforces Singapore’s position as a critical gateway for global travel and trade, ensuring we remain a key pillar of connectivity for decades to come. This is a strategic move that underscores the importance of Singapore remaining a global air transport hub, especially in an increasingly competitive environment.
Pauline Koh
Partner, Tax Governance and IGH & Manufacturing, Tax
KPMG in Singapore
The Government’s comprehensive acceptance of the Equities Market Review group’s tax recommendations is a positive and strategic step towards revitalising interest in SGX-listed equities. However, to fully realise the intended impact of these tax changes, it is crucial to address other non-tax challenges, such as relatively low valuations on the local bourse. Tackling these broader issues will be key to ensuring the long-term success of the initiative and fostering a more vibrant and competitive market.
Alan Lau
Co-Head of Financial Services, Tax
KPMG in Singapore
Budget 2025 underscores the Government’s unwavering commitment to position Singapore as a global leader in research and development. The additional S$3 billion allocation to the National Productivity Fund builds on Singapore’s visionary investments made two decades ago in the Biopolis hub. These strategic initiatives have propelled Singapore to the forefront of DNA microchip manufacturing, exemplifying how foresight and sustained support can transform emerging sectors into global powerhouses. For enterprises in Singapore, this creates opportunities to leverage cutting-edge innovation, collaborate with world-class researchers, and break into global markets.
Chui Wu Hong
Partner, Head of Private Enterprise
KPMG in Singapore
The S$150m Enterprise Compute Initiative marks a significant advancement in closing Singapore’s AI capability gap, enhancing productivity, and driving business growth across industries. By funding access to AI tools, cloud services, and expert consultancy, this initiative bolsters Singapore’s innovation ecosystem and solidifies its position as a global tech hub. Coupled with the Global Founders Programme, which anchors ventures in Singapore and facilitates critical skills transfer, these efforts will be instrumental in developing globally and regionally competitive AI talent. Together, these initiatives attract global investments, empower businesses, and drive Singapore’s economic growth in an increasingly digital world.
James Wilson
Partner, Technology Consulting
KPMG in Singapore
Budget 2025 includes additional initiatives to help Singaporeans upskill and stay competitive amid a rapidly changing labour market. It also provides support for companies to restructure, transform and upgrade their workforce. This is alongside support provided through other Government schemes to nurture Singaporean leadership talent.
Barbara Kinle
Partner, Personal Tax & Global Mobility Services, Tax
KPMG in Singapore
Introduction of the new S$1 billion Private Credit Growth Fund and deployment of patient capital are welcomed initiatives that will provide much needed financing to accelerate the growth of local high-growth enterprises. This is especially timely given the recent slowdown in venture capital and private equity funding globally.
Loh Yee Chuan
Partner, Corporate Finance
KPMG in Singapore
The enhancements to Section 13W of the Singapore Income Tax Act are a significant boost for companies using Singapore as an investment hub. The removal of the sunset clause offers businesses certainty on the non-taxation of gains from qualifying divestments, encouraging more investment activities through Singapore. Expanding the provision to include eligible gains from the disposal of preference shares, along with the relaxation of minimum shareholding conditions to a group-level assessment, provides added flexibility for investors. These progressive changes reinforce Singapore’s appeal as a premier investment platform.
See Wei Hwa
Partner, Tax
KPMG in Singapore
