SINGAPORE: Every year, as Budget season approaches, businesses and the public alike put forward their wish lists, hoping for measures that address pressing challenges. While cost-of-living support and social spending (healthcare and eldercare, education, community facilities, among others) remain top priorities for many Singaporeans, according to The Straits Times’ Vikram Khanna, businesses are also calling for more subsidies to support workforce training and a range of tax breaks.
There are also demands for additional funding to drive artificial intelligence (AI) and sustainability efforts, and the expansion of schemes like the Productivity Solutions Grant and the Enterprise Development Grant.
Tech industry leaders, in particular, see Budget 2025 as a chance to accelerate innovation while ensuring that small and medium-sized enterprises (SMEs) don’t fall behind amid macroeconomic challenges and rising trade tensions.
Targeted tax support for loss-making businesses
According to Instarem’s global head, Yogesh Sangle, “While corporate income tax rebates are a welcome measure for profitable SMEs, loss-making businesses—especially those in recovery—shouldn’t be left behind. A more inclusive approach, such as tiered rebates or innovation-linked tax benefits, would ensure that support reaches SMEs at every stage.”
Helping SMEs keep up with AI adoption
AI is reshaping industries, but many SMEs still find it costly and complex to implement. Mr Sangle said that beyond financial relief, ongoing training and upskilling are crucial, especially as AI becomes more pervasive. While last year’s Budget introduced initiatives like SkillsFuture Level-Up, continuing this momentum will be important.
He noted that SMEs often struggle to adopt AI, falling behind larger companies that can take advantage of early gains, suggesting that Budget 2025 could help by providing grants for AI training and implementation. Subsidies for SMEs to try AI-driven tools, along with continued workforce upskilling, would go a long way to keep pace with larger businesses, he said.
Boosting Singapore’s food tech sector
With less than 1 per cent of land set aside for farming, Singapore’s goal of producing 30 per cent of its food locally by 2030 has boosted demand for food innovation.
As funding challenges grow for food tech startups, Nourish Ingredients CEO James Petrie urged more government support to keep Singapore’s status as a leader in food innovation.
He pointed out the need for continued investment in precision fermentation and biotechnology manufacturing to scale innovations beyond pilot stages. Strengthening private-public partnerships, he added, would drive innovation, boost food security, and create high-value jobs for Singaporeans.
Supporting digital workplaces amid high office rental costs
Meanwhile, video conferencing solutions provider Neat vice president for APAC, Niko Walraven, said Budget 2025 could help SMEs adopt digital tools to improve collaboration and efficiency by expanding schemes like the SkillsFuture Enterprise Credit.
He noted that technology is key as businesses rethink office spaces amid rising rental costs, adding that greater support would ease concerns over initial investment and help SMEs adapt to technological changes.
Helping SMEs manage data better with digital solutions
Many SMEs struggle to adopt and realise the considerable potential of digital solutions, often lacking the support needed to integrate data effectively. Without a unified platform to connect customer information, businesses risk missing out on data-driven decisions, profitability, and efficiency benefits, according to Dan Bognar, HubSpot’s vice president & managing director for JAPAC.
Mr Bognar noted that Singapore businesses use over 50 different applications to manage customer interactions, and over 75 per cent feel they lack enough data to make AI impactful. This slows down adoption and creates challenges as Singapore works towards its National AI Strategy 2.0 goals.
He said that for SMEs to succeed in the digital economy, they need solutions that are easy to adopt, fast to implement, and work smoothly across different teams and processes.
However, as Mr Khanna of The Straits Times noted, while all this may be justified, there is little public discussion on how it will be funded. The assumption that resources will always be available deserves a closer look, especially when considering Singapore’s medium-term needs. /TISG
Featured image by Depositphotos (for illustration purposes only)