The Budget Statement for 2025 will be delivered on Tuesday, 18 February. The logo for this year features three figures supporting one another, symbolise the unity of the Singaporean people, coming together to explore new opportunities together and to reach new frontiers.
With these goals in mind, SMEhorizon presents a wishlist from three tech leaders for measures that could develop resilience, security, and a confidence in the future.
Financial support for SMEs at every stage
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.
Beyond financial relief, the demand for training and upskilling employees remains critical. Last year’s budget offered great programs, including the SkillsFuture Level-Up, but continuing this momentum will be key, particularly as AI becomes more pervasive.
SMEs face unique challenges when it comes to AI adoption. While larger organisations can capitalize on early gains, SMEs are often left playing catch-up. This results in increasing gaps in competitiveness.
Budget 2025 has an opportunity to bridge this gap by offering targeted grants for AI training and implementation. Subsidies for SMEs to experiment with AI-driven tools, combined with continued workforce upskilling initiatives, would go a long way in helping businesses keep pace with larger players.
- Yogesh Sangle, Global Head of Instarem
Workplace digital transformation for future-proof businesses
As Singapore prepares for Budget 2025, workplace digital transformation remains vital for future-proofing business. With the upcoming Budget strongly focused on training, skills development, and job creation, targeted support for SMEs is especially crucial as this sector represents the backbone of Singapore’s economy. Their ability to adapt to technological changes and evolving workplace dynamics will be fundamental to sustaining Singapore’s competitive edge in the global economy.
Given the high rental costs in Singapore, organisations must also rethink how to best optimise space and build collaborative environments. Technology is key to achieving this – enabling not only flexibility but deeper human connections that today’s workforce values.
While the initial investment in such technology may be of concern to SMEs, expanded support through Budget 2025 initiatives like the SkillsFuture Enterprise Credit could accelerate adoption. Organisations that leverage these tools can create data-driven workplaces that enhance team collaboration and productivity while maximising their real estate investments.
- Niko Walraven, Area Vice President APAC, Neat
Guidance for SMEs adopting digital solutions
We anticipate targeted guidance for SMEs to further adopt and realise the considerable potential of digital solutions.
While some cohorts of Singapore businesses are rapidly adopting technology, many require support and expertise to get started, and to integrate these tools effectively into their organisation and existing technology landscape.
The cost of inaction is high. Businesses lacking a unified platform to connect their data, customer information, and functional teams are losing out on opportunities to lead with data-driven decisions, along with profitability and efficiency benefits.
Our research shows that the average Singapore business switches between more than 50 applications when managing customer interactions. Additionally, over 75% of Singapore businesses feel they lack sufficient data to make AI impactful, hindering their adoption of transformational technologies.
This poses a significant barrier as Singapore aims to become a global AI hub, with government initiatives like the National AI Strategy 2.0 setting ambitious targets for adoption.
To succeed in the digital economy, SMEs need solutions that are easy to adopt, fast to implement, and unified across teams and processes. Empowering SMEs with these tools and the technical knowledge required for sustained digital transformation will not only strengthen individual businesses but also enhance Singapore’s position as a leader in the global digital economy.
- Dan Bognar, Vice President & Managing Director, JAPAC
Closing the digital skills gap
With economic pressures mounting, small businesses can’t afford inefficiencies. Leveraging technologies like AI, digital solutions and data analytics can be key enablers for small businesses, helping them to unlock new levels of productivity, automate repetitive tasks and gain critical operational insights to make smarter decisions.
We hope that the upcoming Budget will continue to support small business growth as it has historically, with more measures to accelerate the adoption of these transformational technologies, particularly in data-intensive areas such as financial management. This could include expanded grants for digital solutions to manage cash flow pressures, and mentorship initiatives to help businesses effectively integrate these technologies.
Measures to close the digital skills gap are equally important. Support for continuous upskilling or reskilling of the workforce will be essential for SMEs to strengthen their digital literacy and capabilities as well as enhance their future readiness. This dual focus on technology adoption and skills development will be crucial for Singapore’s continued leadership in the digital economy.
- Koren Wines, Managing Director for Xero Asia
