Singapore Budget 2023 – Updated List

  • Post category:Singapore

The Singapore Budget 2023 includes a variety of tax initiatives to support parents, anchor quality investments in Singapore, foster and sustain innovation, grow local businesses, equip and empower workers, and support parents; the budget includes a variety of tax initiatives.

Also, $3 billion worth of improvements to the Assurance Package will be made in order to help all Singaporeans adjust to the increased GST rate.

Singapore Budget 2023


Expanding the economy and supplying workers with tools

Singapore intends to step up its efforts to draw top-tier investments into emerging industries, including banking and finance, international trade, and manufacturing in crucial sectors like electronics, chemicals, and biomedical science. To support investments in capability building, boosting home ecosystems, and upskilling the workforce, the National Productivity Fund will receive a S$4 billion boost.

A maximum deduction of 400% will be given under the new Enterprise Innovation Plan for qualifying costs related to training, intellectual property registration and acquisition, and R&D undertaken in Singapore. A sizable sum of money will be set aside to invest in growing local businesses. Grants for energy efficiency and financing programs will be expanded to assist local businesses in coping with cost challenges.

Jobs-skills integrators will be hired to identify the skills and manpower shortages in specific industries, assuring better job fit and better employment and wage prospects for people. To promote inclusivity and diversity in recruiting, a number of employment credits will be increased or introduced.

Increasing the social compact

Three crucial sectors will receive significant funding: supporting families, combating inequality and promoting social mobility, and improving care for the ageing population. Housing subsidies will be increased for first-time applicants in order to support families.

To help parents cover the cost of raising children, financial grants, subsidies, and individual reliefs will be provided. Separately, the Government will work with companies to implement specific flexible work arrangement guidelines. It will increase the government-paid paternity leave for eligible dads of Singaporean children born on or after 1 January 2024 from two weeks to four weeks.

Platform workers must contribute to the Central Provident Fund (CPF) to guarantee adequate retirement savings. Senior workers will have higher CPF contribution rates, and by 2026, the maximum monthly wage that may be deducted from CPF contributions will rise gradually from S$6,000 to S$8,000. There will be large top-ups given to pay for long-term care and medical needs.

Building a resilient country

A complete system will be implemented for crisis management to train, mobilize, and cross-deploy public employees depending on their skill sets and expertise. In order to respond to upcoming crises, the government will increase its resources by utilizing the capacities of the people and business sectors.

The government will continue to diversify and enhance its import sources, examine its stockpile plans, and enhance local production capabilities for vital supplies to increase economic and supply chain resilience. Future structures will be built to fulfil many functions and be capable of being transformed into crucial facilities in times of emergency.

By cutting energy use and switching to cleaner energy sources, proactive measures are being taken to achieve the net-zero emission target by 2050. Infrastructural improvements to the coastal and drainage systems are also made in an effort to combat the rising sea level.


For Singaporean citizens

The government would provide an additional $3 billion to the Assurance Package (a total of $9.6 billion) to help Singaporeans, as it is anticipated that inflation will continue high at least until the first half of 2023.

These top-ups are intended to assist in covering increased living expenses as well as the expected GST increase in 2024. 

In 2022, there were three packages with a combined cost of $3.5 billion, paid for by corporate income tax and asset-related levies.

As a result, Singapore had to use some of its previous reserves (estimated at $3.1 billion) to pay for COVID-19 regulations.

For Families

The need to strengthen Singapore’s social contract in creating a resilient country has also been emphasised in Budget 2023. To continue assisting families, the government has added new policies and increased grant funding:

BTO Balloting: Young married couples and families with children under the age of 40 have an additional opportunity to vote. This will eventually be put into practice.

CPF Housing Grant

For qualifying first-timer families buying 4-room or smaller resale apartments, the increase is $30,000; for those buying 5-room or larger apartments, it is $10,000. With immediate effect, this higher CPF Housing Benefit will be available to qualified First-Timer families buying resale units. From April 2023 on, this additional grant money will be credited to their CPF account.

For eligible first-time singles buying 4-room or smaller resale apartments, the increase is $15,000; for those buying 5-room or larger apartments, it is $15,000. With immediate effect, this higher CPF Housing Allowance will be available to eligible First-Timer individuals buying resale apartments. From April 2023 on, this additional grant money will be credited to their CPF account.

Families Singles
Maximum Grant Amount Up to $190,000 (from $160,000) Up to $95,000 (from $80,000)
CPF Housing Grant for Resale Flats 4-room or smaller resale flats Up to $80,000 (from $50,000) Up to $40,000 (from $25,000)
5-room or smaller resale flats Up to $50,000 (from $40,000) Up to $25,000 (from $20,000)
Enhanced CPF Housing Grant (EHG) Up to $80,000 Up to $40,000
Proximity Housing Grant (PHG) Up to $30,000 Up to $15,000

The government will also support families with the costs of raising children and fathers in raising their children by increasing paid paternity leaves, in addition to steps to help families find housing.

For all eligible Singaporean children born on 14 Feb 2023 to 31 Dec 2023 1 Jan 2024 onwards
Cash Support -Increase in Baby Bonus cash gift by $3,000- Increase in government contributions to the Child Development Account (CDA)- Increase First Step Grant by $2,000- Increase government co-matching cap for CDA by $1,000 for the first and second child
Government-Paid Paternity Leave 2 weeks 4 weeks (2 weeks on a voluntary basis)


1st Child 15% of mother's earned income $8,000
2nd Child 20% of mother's earned income $10,000
3rd Child and beyond 25% of mother's earned income $12,000

There will also be more assistance available for families with lower incomes. This takes the form of an addition of $300 million to the ComCare Endowment Fund, which helps to fund ComCare, a vital source of assistance for many lower-income families.

ComLink, a national platform that serves 14,000 rental-housing families with children, will also be better integrated and streamlined across several government programs that assist lower-income families.

Last but not least, KidSTART will be expanded to serve 80% of eligible kids from low-income families, beginning with babies born this year.

For Workers

After the financial reserves,  people are Singapore’s second-best defence. The administration is determined to support those who are in the workforce.

A $2.4 billion boost to the Progressive Wage Credit Scheme (PWCS) fund will improve employment support and allow it to keep helping businesses adapt.

Also, an expanded Enabling Employment Credit would be available to help firms hire people with disabilities who haven’t worked for at least six months.

Also, until 2025, older workers will be eligible for the Senior Employment Credit and the Part-Time Re-employment Grant.

In order to incentivize businesses to hire ex-offenders, a new Uplifting Employment Credit in the form of a temporary salary offset will also be implemented.


Over a five-year period, the CPF contribution rates of Platform Workers and Businesses will match those of Employees and Employers. CPF Transition Assistance will be offered over the first four years following implementation because take-home pay will be impacted.

Senior employees’ CPF contribution rates will rise, and under the Retirement Sum Scheme, their minimum monthly CPF payout would increase to $350.

Middle-income As of 2026, the government will increase the CPF monthly wage maximum from $6,000 to $8,000, allowing Singaporeans to save more money for retirement. To give firms and employees time to prepare for the changes, the government will gradually implement the increases over the course of four years, beginning this year.


The government plans to assist workers in upgrading their skills and finding employment by:

  • Encouraging businesses to understand the sector’s labour and skill shortages
  • Updating current training programs or creating new ones in collaboration with training providers
  • Assuring that training leads to improved employment and income possibilities through collaborating with organisations that facilitate employment, industry partners, and unions.


Singapore is aiming to increase revenue to cover upcoming costs as COVID-19 has depleted our reserves. It is not as straightforward as just “taxing the rich,” though.

Singapore is aiming for a fair and progressive tax system based on shared responsibility, with those who are better off making greater contributions.

In addition to these modifications, the government will improve tax-deductible donations, the Corporate Volunteer Scheme, examine salary criteria for the social service industry, top-off the Community Silver Fund, and give a $10 million boost to help Self-Help Groups.

The Budget contains various tax measures to support parents, anchor quality investments in Singapore, nurture and sustain innovation, develop local enterprises, and equip and empower workers. There will also be enhancements to the Assurance Package, costing $3 billion to provide transitional support to all Singaporeans to defray the impact of the higher GST rate.

The full Budget Statement is available at, and the Ministry of Finance’s media release is available at

Tax incentives

The Investment Allowance (IA) program will remain in place through December 31, 2028.

Read Singapore business registration for more information about investing and registering a company in Singapore.

Till March 31, 2026, the Investment Allowance-100% (IA-100%) scheme will be available for automation projects.

Development and Expansion Incentive (DEI) and Pioneer Certificate Incentive (PC) will both be extended to December 31, 2028.

Until December 31, 2028, the IP Development Incentive (IDI) will remain in effect.

The Qualified Debt Securities (QDS) scheme’s duration will be increased to 31 December 2028, and its terms will also be clarified.

Till December 31, 2028, primary dealers’ income from trading Singapore Government Securities (SGS) would be exempt from taxes.

Other Tax

  • Higher marginal buyer’s stamp duty (BSD) rates will be implemented for higher-value residential and non-residential properties to improve the progressivity of the BSD regime.
  • To encourage automobile and tax owners to deregister their vehicles early, preferential additional registration fee (PARF) rebates will be capped at $60,000.
  • All new, imported, used, and goods/passenger vehicles registered with Certificates of Entitlement (COEs) obtained during the second COE bidding exercise beginning in February 2023 will be subject to a new Additional Registration Fee (ARF) structure.
  • After February 14, 2023, excise taxes on all tobacco products will increase by 15%.


What are some key measures announced in the Singapore budget 2023?

Some key measures announced in the Singapore budget 2023 include:

  • Extension of the Jobs Support Scheme (JSS) until the end of 2023 to support businesses and workers
  • Implementation of a new carbon tax on high-emitting industries and an increase in the existing carbon tax for other industries
  • Launch of a new Digital Innovation Fund to support companies in their digital transformation efforts
  • Increase in the Central Provident Fund (CPF) contribution rates for older workers.
  • Expansion of the Silver Support Scheme to include more seniors

How will the new carbon tax work?

The new carbon tax will apply to companies in high-emitting industries such as petrochemicals and semiconductors. The tax rate will be $20 per tonne of greenhouse gas emissions, and will be implemented from 2024. The existing carbon tax for other industries will also be increased from $5 to $10 per tonne of greenhouse gas emissions.

What is the Digital Innovation Fund?

The Digital Innovation Fund is a new initiative launched in the Singapore budget 2023 to support companies in their digital transformation efforts. The fund will provide grants to help companies adopt new technologies, build digital capabilities, and create new business models.

What is the Silver Support Scheme?

The Silver Support Scheme is a government initiative that provides cash payouts to elderly Singaporeans who have low retirement income. The scheme was first introduced in 2016 and has been expanded in the Singapore budget 2023 to include more seniors.

How will the Singapore budget 2023 impact the average Singaporean?

The Singapore budget for 2023 is expected to provide continued support for businesses and workers, which should help to boost economic growth and create jobs. The measures announced in the budget may also benefit the average Singaporean by improving social support programs, promoting digital transformation, and addressing climate change.