- Corporate tax rebates and fund manager incentives aim to enhance SGX’s attractiveness, benefiting banks and listed companies.
- Cash handouts, vouchers, and rebates will drive retail and real estate growth, benefiting REITs and supermarkets.
- S$5 billion Future Energy Fund supports clean energy, EV infrastructure, and sustainability projects, favoring companies like Sembcorp and Keppel.
Imagine you’re setting off on a long road trip. Would you drive without a map? Probably not. Investing is the same—without a clear roadmap, you risk getting lost in market volatility, inflation, and economic uncertainty. Fortunately, Singapore’s Budget 2025 acts as a financial GPS, guiding investors toward sectors primed for long-term growth. With government-backed funding, tax incentives, and economic initiatives, the budget presents a rare opportunity to align your investments with Singapore’s future economic trajectory.
Here’s how you can position your portfolio to take advantage.
1. Singapore’s Stock Market Is Getting a Boost—Don’t Miss Out
The government is pushing to enhance Singapore’s stock market, making it more attractive to both companies and fund managers.
- Corporate tax rebates for companies listing on the Singapore Exchange (SGX).
- Tax incentives for fund managers who allocate at least 30% of their funds to Singapore-listed stocks.
Which Stocks Win?
- Singapore Exchange Limited (SGX: S68): Higher listing activity, increased trading volumes, and more institutional money flowing in.
- DBS Group Holdings Ltd (SGX: D05), Oversea-Chinese Banking Corporation Limited (SGX: O39), United Overseas Bank Limited (SGX: U11): More capital market activity means more corporate banking and investment flows.
Translation? The government is setting the stage for higher trading activity and a more liquid stock market, benefiting SGX and Singapore’s major banks.
2. Real Estate and Consumer Spending Are Getting a Tailwind
Singaporeans are getting a cash injection in 2025:
- S$600 in SG60 vouchers (S$800 for seniors).
- S$800 in CDC vouchers per household.
- Up to S$760 in utility rebates to offset inflation.
Which Stocks Win?
- CapitaLand Integrated Commercial Trust (SGX: C38U): Owner of major malls like Plaza Singapura and Raffles City, benefiting from higher foot traffic.
- Frasers Centrepoint Trust (SGX: J69U): Key suburban mall operator, well-positioned to capture increased heartland spending.
- Sheng Siong Group Ltd (SGX: OV8): A direct beneficiary of increased grocery spending as families redeem their CDC vouchers.
With more disposable income in consumers’ pockets, expect higher retail spending, which will lift earnings for retail-focused REITs and supermarkets.
3. Singapore’s Green Energy Push Is Creating Investment Opportunities
The government is pumping S$5 billion into the Future Energy Fund, accelerating the shift toward renewable energy and sustainability.
- Investment in clean energy infrastructure (solar, wind, nuclear feasibility studies).
- New incentives for electric vehicle (EV) charging networks and green transport.
Which Stocks Win?
- Sembcorp Industries Ltd (SGX: U96) – A leader in Singapore’s green energy transition, aggressively expanding into renewables.
- Keppel Corporation Limited (SGX: BN4) – Benefiting from both clean energy investments and infrastructure projects tied to sustainability.
- ComfortDelGro Corporation Limited (SGX: C52): Despite additional EV road taxes, impact on its financial will be minimal. Meanwhile, we should see the public transport giant benefit from long-term electrification trends.
With strong government-backed funding, Singapore is proving that its green energy push is a long-term commitment, creating sustained tailwinds for companies in this sector.
Final Take: Follow the Roadmap to Financial Growth
Singapore’s Budget 2025 is your investment roadmap—but only if you act on it. Instead of watching opportunities pass by, position your portfolio for long-term growth with government-backed themes. The government has drawn the map—now it’s time for you to follow it.
Disclaimer: ProsperUs Head of Content & Investment Lead Billy Toh doesn’t own shares of any companies mentioned.
