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Running a business isn’t easy—rising costs, hiring challenges, and cash flow issues can make it tough to grow. But Singapore Budget 2025 has rolled out a series of funding, rebates, cash payouts, wage support, and grants to help SMEs stay competitive. Whether your business is profitable or loss-making, there’s something here for you. Let’s break it down!
Death and Taxes are two things we can’t avoid, but this year’s budget gives back with a 50% corporate income tax rebate.
✔ Minimum rebate: S$2,000 for active businesses with at least one local employee
✔ Maximum rebate: S$40,000
Not making profits yet to pay income tax? You still get financial support!
The government is providing a minimum $2,000 cash payout for all active businesses with at least one local employee on payroll.
Hiring and retaining talent can be difficult, so the government is stepping in with wage support:
✔ Government covers 40% of wage increases in 2025
✔ Government covers 20% of wage increases in 2026
This means that if you increase wages for lower-income employees, the government pays part of the difference, helping SMEs manage labor costs. This helps retain valuable employees without putting too much strain on your cash flow.
If you need financing to expand operations, secure bigger trade deals, or invest in assets, you’re in luck!
✔ Trade Loan Limit Increased: From $5M to $10M
✔ M&A Loan Scope Expanded: Now includes targeted asset acquisitions
If your business is ready to scale or acquire assets, the government is making it easier to access larger financing amounts.
For SMEs struggling to get traditional bank loans, a new $1B Private Credit Growth Fund has been introduced.
✔ Flexible financing option
✔ Less intrusive than equity funding
✔ Ideal for high-growth SMEs
While we are not sure of the complete details, this might lightly trickle down to cheaper private loans with more flexible credit processes.
Market Readiness Assistance (MRA) Grant – Help for Overseas Expansion. If your SME is looking to expand into new markets, the government is extending the $100,000 per market grant until March2026.
✔ Covers costs for overseas promotion, business development & market setup
✔ Originally set to expire in 2025, now extended for another year
If you’re thinking about regional or global expansion, this grant helps reduce setup costs.
The Singapore Budget 2025 is designed to put cash back into SMEs and help them hire, expand, and invest in the future.
Here’s what you should do next:
✔ Check your eligibility for the corporate tax rebate & direct cash payout
✔ Use wage support to retain employees & manage salary costs
✔ Explore EFS loans if you need bigger financing options
✔ Consider the MRA Grant if expanding overseas
Whether you need funding, tax relief, or wage support, Budget 2025 has something to help your SME grow. Now’s the time to take advantage of these initiatives and set your business up for success!
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