Developing | Singapore budget 2025: cash vouchers, utilities rebates unveiled as election nears

Singapore will disburse additional cash vouchers and rebates on utilities to households to weather the rising costs of living, Lawrence Wong has announced in his maiden budget speech as prime minister, as the city state edges towards an election.

Each household will receive S$800 (US$600) in vouchers over two tranches, with S$500 disbursed in May this year and the remaining next January that can be used in local businesses, including hawkers and supermarkets. This is S$200 higher than the amount announced in last year’s budget.

The budget speech on Tuesday is the last one this parliamentary term before the general election that must be held by November this year.

The voucher scheme, called Community Development Council vouchers, was first introduced amid the Covid-19 pandemic to help lower-income households ease cost-of-living pressures and support hawkers and merchants affected by the pandemic.

Wong in his speech said Singapore’s growth was projected at 1 to 3 per cent, while inflation was expected to average 1.5 per cent to 2.5 per cent.

The vouchers are part of a suite of measures the government has announced to help tackle cost pressures. Others include S$500 credits for Singaporean children aged 12 and below this year that parents can use to defray household expenses, and S$500 top-ups to education funds for children aged 13 to 20.

For companies, Wong announced a 50 per cent corporate income tax rebate for the 2025 year of assessment. All active companies that hired at least one local employee last year will receive a minimum benefit of S$2,000, with the total benefit capped at S$40,000.