Singapore Budget 2025 prioritises SMEs & digital growth

The Singapore Budget 2025 has set the stage for bolstering economic competitiveness and upskilling the workforce amid challenging global economic conditions. Central to the Budget's aims are a slew of initiatives aimed at supporting small and medium enterprises (SMEs) through targeted financial support and technological advancements.

Yogesh Sangle, Global Head at Instarem, expressed optimism about the corporate tax rebates and co-funded wage increases introduced in the Budget, which he described as providing "critical support amid rising business costs." He welcomed direct assistance for unprofitable businesses, enabling them to focus on growth. Instarem particularly praised the USD $3 billion top-up to the National Productivity Fund, aimed at enhancing competitiveness and aiding SMEs in scaling and digitising, especially through grants for AI adoption and automation.

Xero Asia's Managing Director, Koren Wines, highlighted the urgency for SMEs to overcome inefficiencies, noting the potential of AI and unified data technologies to unlock productivity. The refreshed National Productivity Fund is seen as pivotal in equipping businesses with new digital capabilities. Wines stressed the importance of consultancy services available through the new Enterprise Compute Initiative to guide SMEs in effectively integrating AI tools, bridging the digital skills gap, and achieving sustainable growth in the digital economy.

Jornt Moerland, Senior Vice President for Asia Pacific at Mendix, applauded the Budget's vision for a tech-savvy enterprise future. The USD $150 million injection into the Enterprise Compute Initiative was described as a move to lower entry barriers for AI tools, fostering agility and adaptability among local enterprises. Moerland emphasised this as an opportunity to equip enterprises to meet global demands through cutting-edge technologies.

HubSpot's Vice President and Managing Director for JAPAC, Dan Bognar, underscored the importance of SME digitalisation at a time when swift digital transformation is vital. He noted the Enterprise Compute Initiative's blend of financial backing and expert guidance as crucial for practical AI adoption. Bognar highlighted the necessity for integrated digital tools that enhance customer engagement and productivity, fostered by the Budget's commitments to digital transformation.

The sentiment that the Budget would serve as a catalyst for innovation was echoed by Niko Walraven, Area Vice President APAC at Neat. He foresaw strengthened technological infrastructure as essential for fostering lifelong learning and innovation. The initiatives promise to empower businesses to pursue strategic technology investments, which would promote productivity, creativity, and collaboration within the sector.

On a different note, James Petrie, CEO of Nourish Ingredients, pointed out the sustainability measures within the Budget. He noted that despite economic challenges, Singapore remains committed to the "30 by 30" food security target. Government backing for innovation in food tech is seen as crucial for Singapore's role as a food innovation hub, with continued investments expected to accelerate the commercialisation of alternative proteins and aid in the pursuit of net-zero goals by 2050.

The 2025 Singapore Budget, outlined with a focus on technological and workforce enhancements, serves not only to support existing businesses but also positions SMEs to thrive in a rapidly evolving global economy. The initiatives presented seek to cultivate an ecosystem that fosters sustainable growth, innovation, and long-term economic resilience for Singapore's enterprises.