More CDC vouchers, $500 Edusave top-up: What you should know about Budget 2025

Budget 2025 is one for all Singaporeans, said Prime Minister Lawrence Wong in Parliament on Tuesday (Feb 18).

In his first Budget speech as head of government, PM Wong started off by saying that Singapore's economy grew by 4.4 per cent and the median income of workers rose by 3.4 per cent above inflation.

A "good momentum" aside, he added that it comes amid "greater global certainty".

"But we can look ahead with a degree of confidence. Singapore today is far stronger than we were 60 years ago," said PM Wong.

"This Budget builds on previous Budgets, not only to address today's challenges, but to plan ahead and secure Singapore's future."

Here are some of the key announcements from Budget 2025.

Easing Singaporeans' cost of living concerns 

Singaporeans will get a mix of vouchers, rebates and credits to help them cope with the rising cost of living.

In his Budget speech in Parliament on Tuesday (Feb 18), Prime Minister and Finance Minister Lawrence Wong acknowledged that Singaporeans have had to "tighten their belts" amid the "new price realities" despite inflation expecting to ease further this year.

Among the additional support from the government, he said, are $800 in Community Development Council (CDC) Vouchers which will benefit about 1.3 million Singaporean households.

The first $500 will be disbursed in May 2025, and the remaining $300 will be disbursed in January 2026. Each tranche of the CDC vouchers will be split equality for spending at participating merchants, hawkers and supermarkets.

Additional U-Save rebates will also be given to more than 950,000 Singaporean households to cope with their utilities expenses.

Eligible HDB households will receive up to $760 in April, July, October in 2025 and January next year, which is double the amount of U-Save rebates.

It will cover about six months of utilities expenses for those living in one-room and two-room HDB flats, and three months for those living in three and four-room flats, said PM Wong.

Singaporeans can look forward to up to $800 in vouchers in celebration of the nation's 60th birthday.

$500 LifeSG credits for kids

Each Singaporean child aged 12 and below this year will also receive $500 in digital credits that can be redeemed on the LifeSG mobile app, said the prime minister.

These credits are the same as the $200 LifeSG credits that were progressively disbursed to all national servicemen by November last year.

"Parents can use them to defray household expenses such as groceries, utilities and pharmacy items," said PM Wong.

Singaporeans aged 13 to 20 will receive a $500 top-up to their Edusave, or Post-Secondary Education Account, which they can use to pay for approved education-related expenses.

More than 50,000 new flats over next 3 years

Woodlands, Bayshore and Mount Pleasant are among the locations that will see more than 50,000 new flats to be launched over the next three years.

PM Wong said that application rates for Build-To-Order flats have stabilised and are "well below pre-Covid levels".

"We have ramped up our BTO supply decisively," he added.

The Ministry of National Development (MND) and the Housing Development Board had said in January that 19,600 BTO flats will be launched across three sales exercises this year.

Nearly 20 per cent, or 3,800 BTO flats will have shorter waiting times of less than three years.

Addressing job security concerns

More support from the government will be given to Singaporeans looking for a skills reboot.

From early next year, the training allowance for Singaporeans aged 40 and above will be extended to part-time training.

The allowance is fixed at $300 per month, said PM Wong.

Education Minister Chan Chun Sing  will share more details about the scheme at the Committee of Supply, he added.

In May 2024, Singaporeans aged 40 and above received additional $4,000 in SkillsFuture credits which they can use on selected full-time courses.

More than 25,000 Singaporeans have since used the credits, said Minister of State for Education and Manpower Gan Siow Huang, in response to a parliamentary question on Jan 8.

Lower-wage workers from aged 30 will also be given a "boost" in the form of early upskilling.

An enhanced tier of support under the Workfare Skills Support for lower-wage workers will be introduced.

PM Wong said today that the scheme is designed to support short courses that are completed over a few days.

"But lower-wage workers stand to benefit more from longer-form courses that provide more substantive reskilling and upskilling," he added.

PM Wong also announced a new grant which aims to simplify the application process for companies by bringing together existing schemes administered by Workforce Singapore and SkillsFuture Singapore.

This will provide higher funding support for up to 70 per cent for job redesign activities, he added.

Enhancing climate resilience in Singapore

Addressing climate change in Singapore formed a segment in PM Wong's Budget speech.

Among the measures introduced - an additional $5 billion investment to coastal and flood protection measures which will be progressively implemented from the 2030s.

The Coastal and Flood Protection Fund was first set up in 2020 to protect Singapore against rising sea levels and enhance flood resilience. There was an initial injection of $5 billion.

"The actual implementation of the measures could stretch over two decades or longer," said the prime minister. "But it would be prudent to set aside funds now to ensure that we can proceed with these investments which will benefit current and future generations."

An additional $100 worth of Climate Vouchers will also be given to HDB households from April.

All HDB households were previously given $300 worth of Climate Vouchers which they can use to purchase energy- and water-efficient household products.

Four years after it was first launched in November 2020, the Climate Friendly Households Programme will now be expanded to include Singapore citizen households living in private properties.

Supporting lower-income households

To support lower-income Singaporean households with their basic living expenses, the rates for ComCare Assistance schemes will be increased.

A one-person household on Long-Term Assistance will receive an additional $120 each month, bringing the monthly cash allowance to $760.

The Singapore Allowance will also be increased from $350 to $390 each month which will target those with smaller pensions.

"Through the ComCare Interim Assistance Scheme, we will also provide more support for community organisations to help households in need," said PM Wong.

Second-timer families with children living in public rental flats can also receive a $75,000 grant - up from $50,000 - to buy a new Standard two-room Flexi or three-room flat on shorter lease.

Help for people with disabilities

Under Budget 2025, the Enabling Employment Credit will be extended to end-2028, to offset the wages of people with disabilities.

The scheme, originally set up to run from 2021 to 2025, provides up to 20 per cent wage support for workers with disabilities earning below $4,000 per month.

The extension will help employers who may be concerned about the costs and effort needed to redesign jobs and adapt their workplaces, said PM Wong.

Financial support for people with disabilities will come in the form of increased subsidy rates for adult disability services.

The government will also expand the Matched Retirement Savings Scheme to include eligible Singaporeans with disabilities from January 2026.

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For more on Budget 2025, visit our microsite.

chingshijie@asiaone.com