Weekly Buzz: The big takeaways from Budget 2025 🇸🇬

5 minute read

Singapore's Budget 2025 stands out: it's Prime Minister Lawrence Wong's first as PM, it celebrates the country’s 60th year of independence, and yes, it comes in at an election year. With a government surplus of S$6.4 billion, this budget packs quite a punch. Let's break it down.

Takeaways for individuals and families

In what's been dubbed a "Budget for all Singaporeans," the government is rolling out substantial support across the board:

• To celebrate the nation's 60th birthday, each Singaporean gets S$600 in SG60 vouchers if you're between 21 and 59, or S$800 if you're 60 and above. There's also a 60% income tax rebate (capped at S$200), a S$100 ActiveSG credit top-up, and a new S$100 SG Culture Pass.

• For families feeling the pinch of rising costs, there's relief too. Parents get S$500 in LifeSG credits for each child aged 12 and below, while those with older children receive S$500 in Edusave top-ups for kids aged 13 to 20. For larger families, there's more: S$1,000 in LifeSG credits for each third and subsequent child between ages 1 and 6.

• At the household level, expect S$800 in CDC vouchers to help with daily expenses. If you live in an HDB flat, you'll also get U-Save rebates ranging from S$330 to S$570 to offset utility bills. To top it all off, both HDB and private property households get climate vouchers for eco-friendly purchases (S$100 top-up and S$400, respectively).

There’s a lot, so here’s a handy calculator for you to figure out what you and your family are eligible for.

Takeaways for investors

Beyond the various vouchers, Budget 2025 has broader implications for Singapore's economy as well:

• The cash injection is set to stimulate consumer spending. That’s significant for the Straits Times Index, where banks – which make up over half of the local index – stand to benefit from increased business activity. Retail REITs could also see higher mall traffic. Investors took notice: the index pushed new highs following the budget announcements.

• The government's making major moves to energise the local stock market. This includes tax incentives for companies listing on the Singapore Exchange (SGX) and perks for fund managers who invest in Singapore-listed companies.

• There’s also big money going into future industries – S$1 billion for a new semiconductor research facility, S$150 million to help businesses leverage AI, and an additional S$5 billion towards its Future Energy Fund to secure clean power for the country.

The budget's fiscal boost, market-friendly policies, and investments in tech strengthen the country’s outlook. While you likely already have home exposure through your CPF, property, and other assets, you can diversify it further. For an effective way of investing in the Singaporean economy, consider our Singapore Investing portfolio, with its mix of local equities, REITs, and bonds.

🎓 Simply Finance: Budget surplus

When a government takes in more money than it spends, that's a budget surplus. It's like having cash left over at the end of the month after paying all your bills. It gives the government options: save for a rainy day, invest in long-term projects, or return some of it to its citizens.

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