As a small-and medium enterprise (SME) or fast-growing company, staying relevant and competitive in the ever-evolving business landscape is key for growth, given that digitalization and artificial intelligence seem to be the buzzword nowadays.
In the recent Budget 2025, Prime Minister Lawrence Wong announced a series of support measures, including additional funding for existing schemes and new grants/funds to empower business growth and digitalization.
Budget 2025: Maintaining an Economic Edge in AI, Innovation & Business; Source: Channel News Asia
This article provides an overview of the key initiatives introduced in Budget 2025 that are designed to assist Singapore businesses in their pursuit of digital transformation. These initiatives aim to equip companies with necessary tools and resources to navigate the complexities of the digital age, ensuring they remain competitive and innovative.
*Please note that information is subject to change and will be updated as government agencies release further details.
Support Measures Driving Growth
Overview of initiatives/schemes to support businesses' growth; Source: Ministry Of Finance
This article covers:
- Additional $200 million funding for NTUC's Company Training Committee Grant
- Enhanced SkillsFuture Enterprise Credit + SkillsFuture Workforce Development Grant
- Private Credit Growth Fund
- Enterprise Compute Initiative
- 50% Corporate Income Tax Rebate for Year of Assessment 2025
Let’s take a closer look at how these measures introduced in Budget 2025 helps businesses manage rising costs, access financing more easily, and assist employees in upskilling and transformation for better growth and success.
More Funding for NTUC's Company Training Committee (CTC) Grant
The NTUC's Company Training Committee (CTC) Grant will receive an additional $200 million in funding to further assist companies in their transformation initiatives. This enhancement includes backing for employer-led training programmes that result in formal qualifications or certifications.
Eligible companies can cover up to 70% of eligible costs with CTC Grant, allowing them to boost productivity, redesign roles, while enhancing employee opportunities. Expenses eligible for the grant include in-house and external training, consultancy services, and equipment-related training too.
What this means: Companies can leverage on the CTC Grant to off-set their digital investment costs - to kickstart or speed up their digitalization efforts.
Enhanced SkillsFuture Enterprise Credit (SFEC)+ New SkillsFuture Workforce Development Grant
The SkillsFuture Enterprise Credit was introduced in 1979 to motivate employers to invest in their businesses and workforce. Eligible employers are entitled to a one-off credit of $10,000, with up to 70% of this credit available for use for enterprise transformation. For example, companies can utilise the Productivity Solutions Grant (PSG) - one of the programmes supported by SFEC, to accelerate their digitalization initiatives.
As announced in Budget 2025, the revamped SkillsFuture Enterprise Credit will operate like an online wallet from second half of 2026. Employers will be able to check and utilise their credits instantly to offset out-of-pocket costs for eligible workforce transformation initiatives and courses without waiting for reimbursement.
In addition, companies with at least three Singaporean and permanent resident employees will receive a fresh $10,000 credit, with an extension of existing credit's expiry date till second half of 2026.
Prime Minister Lawrence Wong also unveiled a new SkillsFuture Workforce Development Grant that could cover up to 90% of cost for reskilling workers, and up to 70% of cost for redesigning jobs.
What this means: Eligible companies can use the SkillsFuture Enterprise Credit / SkillsFuture Workforce Development Grant to upskill their workforce for digitalization, tapping the cost-savings from government.
Private Credit Growth Fund
Announcement of Private Credit Growth Fund in Budget 2025; Source: The Straits Times
Apart from the grants mentioned above, Budget 2025 also introduces a new $1 billion Private Credit Growth Fund as a form of financing solutions for enterprises.
Mr Wong shared that part of the funds will be used as patient capital with longer investment horizons to support high-growth or fast-growing local enterprises.
What this means: Good news for fast-growing businesses looking to boost their digital infrastructure for global expansion.
And while we're on the topic of growth, Oracle's NetSuite ERP - a cloud-based business management software, is designed to support international expansion for companies like yours, enabling users to oversee multiple subsidiaries, currencies, and diverse local regulations across countries through a unified, centralized platform.
Enterprise Compute Initiative
The race for Artificial Intelligence (AI) capabilities is ON, as companies compete to stay relevant in the changing business scape. The government will also put up to $150 million under the new Enterprise Compute Initiative to help businesses access computing power and artificial intelligence for digital transformation, via partnerships from major cloud service providers.
What this means: This will likely make AI more accessible for companies, creating an even playing field for small businesses too.
Do you know? At AFON, we also offer AI-driven ERP solutions for fast growing businesses.
For instance, Microsoft Dynamics 365 Business Central ERP with its AI tool - Co-Pilot embedded within the software, help boost business productivity for its users. SAP Business One is also bringing intelligent services closer to its customers to streamline business workflows/processes.
Discover how we can value-add your business here.
50% Corporate Income Tax Rebate for Year of Assessment 2025
To assist businesses in managing rising costs, the Singapore government will introduce a 50% corporate income tax rebate for the Year of Assessment 2025. All active companies employing at least one local worker will also receive a cash grant of S$2,000, with each company's total benefit capped at S$40,000.
Furthermore, the government's co-funding share under the Progressive Wage Credit Scheme will increase by 40% in 2025 and by 20% in 2026, to support employers in raising wages for lower-income workers.
What this means: Reduced corporate tax and cash grant can offer some indirect financial relief for companies in their pursue of digitalization.
Kickstart Your Digital Transformation
%20(1)%20(1).jpg?width=1000&height=666&name=shutterstock_116283283_1920_compressed%20(3)%20(1)%20(1).jpg)
If you're looking to kickstart your digital transformation journey, there are available government grants - like the Productivity Solutions Grant (PSG) or the Enterprise Development Grant (EDG) to support ERP software implementation projects, to help businesses strengthen core capabilities for better productivity and growth.
With the PSG in particular, businesses can get a rebate of up to 50% off your costs for such a project.
Additionally, did you know that AFON is a pre-approved PSG vendor for Microsoft Dynamics 365 Business Central, one of the leading ERP software solutions? Many of our clients have also utilised the EDG to finance various implementation projects for Business Central.
Moreover, the PSG and EDG might not be the only government grants you can access. Depending on the industry your business operates within, there may be other grants that are available to you.
To discover other government grants that could support your business's digital initiatives, click on the image below to find out more.
