With the global economy in a state of flux, not a single government in the world can save every job.

But, in the face of this uncertainty and the threat of job destruction from AI, Singaporean Prime Minister Lawrence Wong is confident: “We will create even more opportunities and better jobs for all Singaporeans.”

The guarantee came after the prime minister outlined a comprehensive set of incentives and support measures for businesses and workers under the Singapore Budget 2025 unveiled in February.

As the Budget debate concluded last week, PM Wong once more reminded Members of Parliament of the urgency of maintaining Singapore’s competitive advantage.

“In today’s fragmented world, we must work even harder to stay open as a hub, where businesses from all over the world can operate with assurance and confidence,” he said in his debate roundup speech.

The prime minister expects the constant industry transformation to lead to “more churn in workplaces”. As such, existing jobs will need to be redesigned and new jobs created.

Understandably, all this will contribute to anxiety and concerns amongst Singaporeans about jobs,” he said.

These uncertainties have prompted the government of Singapore to formulate immediate solutions to stay ahead.

Also Read: Singapore Budget 2025: A blueprint for growth?

Singapore Budget 2025: Investing in growth, skills, and innovation

With a record S$143.1 billion allocated for FY2025, up from $134.2 billion last year, Singapore’s latest budget offers a bold vision: “Onward Together for a Better Tomorrow.”

The government is doubling down on workforce development, enterprise support, and technological advancement to future-proof the nation in an era of rapid transformation.

For business and HR leaders, the budget spells out a clear strategy: helping companies stay competitive while ensuring workers are equipped for the jobs of tomorrow.

Below is a breakdown of key initiatives designed to support both workers and employers in navigating challenges such as rising costs, talent retention, and workplace innovation.

Empowering workers: Investing in skills and livelihood

1. Financial support for jobseekers

To cushion the impact of career transitions, the SkillsFuture Jobseeker Support Scheme will provide up to $6,000 over six months for individuals undergoing training or searching for jobs. Launching in April, the scheme offers a financial lifeline to those looking to upskill or pivot in their careers.

2. Expanded support for midcareer workers

Recognising the challenges faced by midcareer professionals, the SkillsFuture Level-Up Programme is expanding its reach. From early 2026, eligible workers enrolled in part-time training will receive a $300 monthly allowance, helping them balance learning with financial commitments.

3. Localised job matching

In a bid to connect jobseekers with opportunities closer to home, localised job-matching services will be expanded across all Community Development Councils. This initiative is expected to streamline employment searches and strengthen workforce participation at a grassroots level. This means workers can look for employment closer to home to provide them with greater work-life balance.

4. Sustainable wage growth

The Progressive Wage Credit Scheme (PWCS) continues to support businesses in lifting wages sustainably. The government will co-fund 40% of wage increases in 2025, tapering to 20% in 2026. The scheme ensures lower-wage workers see real income growth while easing the cost burden on employers.

Empowering employers: Supporting business growth and transformation

1. Corporate tax relief amid rising costs

To ease cost pressures, businesses will benefit from a 50% corporate income tax rebate for the Year of Assessment 2025, capped at $40,000 per company. Firms employing at least one local worker in 2024 will receive a minimum rebate of $2,000 to provide widespread relief for businesses of varying sizes.

2. Incentives for workforce transformation

The SkillsFuture Workforce Development Grant will provide up to 70% funding for firms redesigning job roles and work processes. This initiative is set to fuel innovation in workplace structures, helping companies adapt to evolving industry demands.

3. Simplifying enterprise support

From mid-2026, the SkillsFuture Enterprise Credit will transition into an online wallet, making it easier for firms to access their $10,000 in credits for enterprise and workforce transformation projects. Firms with at least three resident workers are eligible, and the current scheme will remain in place until the new system goes live.

Also Read: Singapore's budget surplus and tax windfall

4. Encouraging senior employment

With Singapore’s ageing workforce, the Senior Employment Credit will be extended until 2026 to incentivise companies to hire older workers. Meanwhile, a Tripartite Workgroup on Senior Employment will be formed to explore further policies supporting mature talent in the workforce.

5. Strengthening workforce upskilling with NTUC

An additional $200 million will be injected into the NTUC’s Company Training Committee (CTC) Grant to expand support for employer-led training that leads to formal qualifications for workers. This move is a nod to the lifelong learning movement as a way to ensure employees remain industry-relevant.

6. Inclusive hiring for a second-chance workforce

The Uplifting Employment Credit, aimed at supporting ex-offenders in reintegrating into the workforce, has been extended until 2028. In 2024 alone, nearly 700 employers hired over 1,500 ex-offenders. This demonstrates growing commitment to inclusivity.

7. Driving digital transformation with AI

A significant $150 million has been earmarked for the Enterprise Compute Initiative to enable businesses to collaborate with leading cloud service providers and gain access to AI tools and expert consultancy services. This initiative will help local enterprises supercharge their digital transformation efforts and maintain a competitive edge.

8. Expanding global reach

To fuel international expansion, the Double Tax Deduction for Internationalization (DTDi) Scheme has been extended. This allows companies to claim tax deductions on eligible overseas business expenses and lowers the financial barriers for firms eyeing new markets. The move reinforces Singapore’s reputation as a global business hub.

Singapore will ‘find a way forward’

Singapore Budget 2025 is only the beginning of the country’s massive talent and work transformation programme.

We are not resting on our laurels,” PM Wong said.

“The government will do more to better support Singaporeans, young and old, to better equip everyone for the changes in our economy … Compared to other countries, in fact, Singapore is already at the forefront in many respects.”

However, the unique position that Singapore is in as an emerging leader in the new AI-driven economy also means, “there are no ready models” for the country to look to, the prime minister said.

“We have to experiment, innovate, and find our own way forward.”