Support for Families, Education, and Climate Resilience Announced

Singapore’s Budget 2025, presented by Prime Minister and Finance Minister Lawrence Wong, introduces comprehensive measures to support citizens amid rising living costs and global economic uncertainties. In his first Budget speech as head of government, PM Wong highlighted that the economy grew by 4.4%, with median worker income increasing by 3.4% above inflation. Emphasising continuity and progress, he stated that this Budget builds on previous ones to address current challenges while ensuring a secure future for Singapore.

Cost of Living Relief
To alleviate cost of living pressures, Singaporean households will receive a mix of vouchers, rebates, and credits. Approximately 1.3 million households will benefit from a total of $800 in Community Development Council (CDC) Vouchers, with the first $500 distributed in May 2025 and the remaining $300 in January 2026. These vouchers can be used at participating merchants, hawkers, and supermarkets.

Additionally, around 950,000 households will receive enhanced U-Save rebates to help with utility expenses. Eligible HDB households could receive up to $760, covering about six months of utilities for one and two-room flats and three months for three and four-room flats. Singaporeans will also receive up to $800 in vouchers to commemorate the nation’s 60th anniversary.

Educational Support and Youth Benefits
Each Singaporean child aged 12 and below will receive $500 in digital credits, redeemable on the LifeSG mobile app to offset expenses such as groceries, utilities, and pharmacy purchases. For youths aged 13 to 20, there will be a $500 top-up to their Edusave or Post-Secondary Education Account, which can be used for education-related expenses.

Housing and Infrastructure Developments
To address housing demands, more than 50,000 new Build-To-Order (BTO) flats will be launched over the next three years in areas including Woodlands, Bayshore, and Mount Pleasant. The Ministry of National Development and the Housing Development Board will oversee these developments, with nearly 20% of the new flats having shorter waiting times of less than three years.

Job Security and Skills Development
Recognising the importance of skills upgrading, Budget 2025 extends the training allowance for Singaporeans aged 40 and above to part-time training, set at $300 per month. Additionally, lower-wage workers aged 30 and above will benefit from enhanced support under the Workfare Skills Support scheme, designed to promote upskilling through longer-form courses.

To simplify application processes for companies, a new grant consolidating existing schemes from Workforce Singapore and SkillsFuture Singapore will be introduced. This grant will provide up to 70% funding support for job redesign initiatives.

Climate Resilience and Environmental Sustainability
Singapore continues its commitment to climate resilience with an additional $5 billion investment in coastal and flood protection, to be implemented progressively from the 2030s. This investment builds on the Coastal and Flood Protection Fund established in 2020.

To encourage sustainable living, $100 in Climate Vouchers will be given to all HDB households starting in April, expanding the Climate Friendly Households Programme to include citizen households in private properties.

Social Assistance and Inclusivity
To support lower-income households, ComCare Assistance scheme rates will be increased. For instance, one-person households on Long-Term Assistance will receive an additional $120 per month, raising the total to $760. The Singapore Allowance will also be enhanced from $350 to $390 monthly for those with smaller pensions.

First-timer families with children living in public rental flats will receive a $75,000 grant, up from $50,000, to purchase a new Standard two-room or Flexi three-room flat on a shorter lease.

For people with disabilities, the Enabling Employment Credit will be extended to 2028, offering up to 20% wage support for those earning below $4,000 per month. The Budget also increases subsidy rates for adult disability services and expands the Matched Retirement Savings Scheme to include eligible Singaporeans with disabilities from January 2026.

Looking Ahead
The measures outlined in Budget 2025 reflect Singapore’s ongoing efforts to navigate global uncertainties while ensuring economic growth and social stability. With targeted support across education, employment, social welfare, and climate resilience, the government aims to build a more inclusive and sustainable future for all Singaporeans.