Singapore businesses call for Budget support to tackle inflation and boost digital adoption

SINGAPORE: As Singapore prepares to unveil its 2025 Budget, businesses are voicing their concerns about managing inflationary pressures and advancing digital transformation. According to UOB’s Business Outlook Study 2025 for SMEs and large enterprises, a significant portion of companies are hoping that the upcoming budget will provide much-needed support in these areas.

The survey revealed that 50% of businesses are anticipating Budget measures to help them navigate the challenges posed by high inflation and facilitate their adoption of digital technologies. This figure represents an increase from 45% in the previous year, reflecting heightened concerns over rising costs and the need for technological modernization.

A deeper look into the study shows that nearly half (46%) of respondents are hopeful the government will introduce grants or additional funding for digital adoption, while 42% are advocating for an increase in SkillsFuture credits to help upskill their workforce. Another 41% of businesses are calling for incentives that encourage the adoption of sustainable practices, and 25% are looking for initiatives that facilitate export opportunities.

The survey also highlighted how businesses view the upcoming Budget as a critical tool in addressing a variety of operational challenges. A total of 45% of businesses believe that Budget initiatives will help manage their costs.

Additionally, 38% foresee a boost in productivity from these measures, 33% hope for improvements in cash flow, 31% expect the Budget to enhance customer demand and revenue, and 30% believe that Budget initiatives will support staff retention.