Budget 2025 wish list: Carving a niche for S'pore on the global stage

More support wanted to ensure growth and stability for firms, workforce and economy

- Angela Tan

It is no surprise that the complex challenges threatening companies in Singapore as the country approaches its 60th year of independence form the bedrock of the business community's extensive Budget wish list.

These challenges are many and varied, from rising operational costs and workforce shortages in the domestic market to an increasingly divided world.

And the ride is getting bumpier. Proposed US tariff hikes, geopolitical tensions and disruptive forces such as climate change and global tax reforms are affecting investment decisions and prompting a rethink of companies' supply chains, said OCBC Bank chief economist Selena Ling.

Mr Tan Tay Lek, corporate tax partner at PwC Singapore, said that small and medium-sized enterprises (SMEs) can be more vulnerable, especially without access to adequate funding, which is crucial for expansion.

SMEs are the backbone of Singapore's economy, providing almost 50 per cent of the country's gross domestic product and employing around 70 per cent of the local workforce.

There are around 300,000 companies here, of which 99 per cent are SMEs, with about 80 per cent of those locally owned.

Mr Tan said companies that lack resources find it hard to respond quickly to problems, which in turn hinder their growth and competitiveness, making targeted support essential for their survival and success.

So, it is no surprise that companies represented by groups such as the American Chamber of Commerce in Singapore and the Singapore National Employers Federation are asking for more government support and funding in Budget 2025.

Their wish list is long despite Budget 2024 providing for a 50 per cent corporate income tax relief and a suite of other incentives including the Enterprise Development Grant, Energy Efficiency Grant, Career Conversion Programmes and Refundable Investment Credit.