The Singapore Manufacturing Federation (SMF) has endorsed Budget 2025 as a comprehensive plan that addresses both immediate challenges and long-term growth for the manufacturing sector. Announced on 18 February 2025, the budget includes measures to provide immediate financial relief, drive innovation, and ensure sustainability, aligning with the sector’s transition towards Industry 5.0.
Budget 2025 introduces a 50% Corporate Income Tax Rebate, capped at S$40,000, to alleviate financial strain due to rising energy costs and supply chain disruptions. Enhanced co-funding under the Progressive Wage Credit Scheme for 2025 and 2026 aims to ease wage inflation pressures, helping firms retain skilled workers. The SkillsFuture Workforce Development Grant offers up to 70% funding for job redesign in automation and digitalisation, preparing the workforce for Industry 4.0.
In the medium term, the budget focuses on innovation and sustainability. A S$3b top-up to the National Productivity Fund and a new semiconductor R&D facility highlight the government’s commitment to a robust innovation ecosystem. The S$150m Enterprise Compute Initiative supports SMEs in adopting AI solutions, while the $5 billion Future Energy Fund promotes renewable energy adoption.
Long-term, Budget 2025 aims to anchor Singapore’s global leadership in sectors like semiconductors and biopharmaceuticals. Workforce resilience is bolstered through SkillsFuture initiatives, ensuring agility in a changing technological landscape. The S$1b Private Credit Growth Fund provides capital for high-growth enterprises, enabling sustainable scaling.
SMF President Lennon Tan praised the budget, stating it equips businesses to scale and compete globally. As Singapore marks its 60th year of independence, SMF commits to working with stakeholders to implement these measures, ensuring the sector’s continued excellence amidst global uncertainties.
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