Singapore Unveils Plans to Boost Productivity, Support Local Enterprises, and Strengthen Global Competitiveness
In the Singapore Budget 2025, a significant S$5 billion top-up to the Changi Airport Development Fund is among key measures introduced to bolster the country’s economic growth. This investment aims to strengthen Singapore’s position as a leading global air hub as it prepares for the completion of Terminal 5, set to increase the airport’s capacity by over 50%.
Prime Minister and Finance Minister Lawrence Wong highlighted the need for Singapore to focus on its competitive strengths rather than attempting to outbid larger economies. In line with this strategy, the government also committed S$3 billion to the National Productivity Fund, supporting initiatives that improve productivity and workforce training. This follows previous increases in the fund of S$4 billion in 2023 and S$2 billion in 2024.
As part of efforts to foster innovation, an additional S$1 billion will be invested in research and development (R&D). Key projects include the creation of a new semiconductor R&D fabrication facility and upgrades to biosciences and medtech infrastructure in Singapore’s one-north area, a major hub for innovation.
Wong also addressed concerns regarding Singapore’s stock exchange, noting that even companies primarily focused on Singapore and Southeast Asia found it unattractive. To tackle this, tax incentives will be introduced for both Singapore-based companies and fund managers who list in Singapore, encouraging further economic activity.
Further, the government is introducing a new S$150 million initiative to help businesses integrate artificial intelligence (AI) solutions. This scheme will provide eligible companies with access to AI tools, cloud services, and expert consultancy, as part of a broader effort to support enterprises looking to scale globally.
In addition to this, the introduction of a S$1 billion Private Credit Growth Fund aims to enhance financing options for high-growth local businesses. Singapore’s Economic Development Board will also launch the Global Founder Programme to attract multinational entrepreneurs and foster more startups in the country.
These initiatives are part of the broader vision to ensure that Singapore remains an economic powerhouse, capable of competing on the world stage.
