Singapore budget focuses on relief for households, businesses amid rising costs: ‘we have your backs’

Wong, the deputy prime minister and finance chief, said the government would roll out measures including S$600 (US$445) in vouchers for each household and rebates to businesses, which would provide “near-term relief” amid inflation and higher operating costs.

“These are the concrete ways to help Singaporeans tackle cost-of-living pressures. Let me assure everyone, we will always have your backs,” he said.

Meanwhile, all companies will receive a 50 per cent corporate income tax rebate, capped at S$40,000.

To attract more investors and encourage companies to make sizeable investments in Singapore amid greater competition, Wong said the government would be introducing a Refundable Investment Credit – a tax credit with a refundable cash feature.

“Governments around the world are rolling out vast subsidies to attract investments, especially in strategic industries. For example, in November last year, Japan announced that it would allocate 2 trillion yen, or about S$18 billion, to support its semiconductor industry,” he said.

“We cannot afford to engage in a bidding war with the major economies, but neither should we stand still and just do nothing.”

In May, all Singaporeans above the age of 40 will also get a S$4,000 top-up of SkillsFuture credits – the state’s education and training initiative for adults – while younger citizens will receive the top-up when they turn 40, Wong said.

The S$4,000 credit would be “more targeted in scope”, said Wong, and users would be confined to selected training programmes that had “better employability outcomes”.

Singaporeans aged over 40 will also be given subsidies to pursue another full-time diploma at polytechnics, institutes of technical education and arts institutions from the 2025 academic