Businesses outline 3 priorities they seek in Budget 2025

Firms cite manpower issues and cost pressures as their main challenges.

Businesses are calling for schemes in Budget 2025 to address three critical challenges.

Data from the Singapore Business Federation's (SBF) National Business Survey (NBS) 2024 – Annual Business Sentiments Edition showed that six in 10 firms want a scheme that can help address cost pressure.

In 2024, most businesses (51%) have adopted cost-saving measures to address cost pressures, with 41% increasing prices and 30% enhancing inventory management.

Rising costs impacted businesses differently, with 57% maintaining profitability and 43% seeing a 27.5% average decline, the report showed.

Other schemes businesses want in Budget 2025 focus on attracting local talent (43%) and addressing foreign manpower issues (41%).

Businesses are fostering local-foreign workforce integration through cross-functional teams (42%), but only 20% have DEI policies or participate in cultural activities, the survey found.

In the past budget, businesses welcomed the Corporate Income Tax rebate (88%), SkillsFuture Level Up programme (78%), and SkillsFuture Enterprise Credit extension (73%), alongside the Progressive Wage Credit Scheme enhancement (70%) and CCP salary support cap increase (67%) as the most popular initiatives.

Overall, businesses want government assistance to manage financing needs (35%), develop human capital (34%), and drive digitalisation for transformation (33%).