Businesses demand bold moves in Singapore’s 2025 budget; half push for inflation relief and digital adoption boost

SINGAPORE: As Singapore prepares to unveil its budget for 2025, a new survey by United Overseas Bank (UOB) featured in the latest Singapore Business Review report highlights growing business expectations for fiscal measures that can help ease the burden of high inflation and accelerate digital adoption.

The UOB Business Outlook Study 2025, which surveyed both SMEs and large enterprises, reveals that 50% of businesses are hopeful that the upcoming budget will address inflationary pressures and provide financial support for digital transformation efforts. This marks a slight increase from 45% in 2023, indicating a heightened urgency among businesses to adapt to changing economic conditions.

The survey further uncovers that 46% of respondents are looking for grants and additional funding to aid in digital adoption, while 42% are calling for expanded SkillsFuture credits to upskill their workforce. Additionally, 41% seek incentives to adopt more sustainable business practices, and 25% would like to see measures that facilitate export opportunities to help expand their reach in global markets.

In addition to their calls for specific funding, businesses believe that budget initiatives will play a pivotal role in helping them manage their overall operations. 45% of respondents expect the budget to support cost management, while 38% anticipate productivity improvements. 33% believe that the budget will positively impact their cash flow, 31% are hopeful it will stimulate customer demand and revenue, and 30% view it as a way to enhance staff retention.

As inflation continues to challenge businesses and the demand for digital solutions grows, the 2025 budget could prove to be a crucial turning point for companies looking to navigate these pressures while remaining competitive in a rapidly evolving global landscape.