Linkedin
Facebook
Email
more
Singapore’s 2025 Budget sets strategic measures for the logistics and transportation sector, focusing on sustainability, digitalisation, infrastructure, and workforce development to foster growth.
Sustainability: Reducing Carbon Footprint
The government is raising the carbon tax to S$50 per tonne by 2025, urging logistics companies to cut emissions.
What this means for logistics companies:
 | Go green Invest in electric vehicles, biofuels, and energy-efficient practices. |
 | Access grants The Enhanced Technology Adoption Grant helps offset green tech costs, but compliance is key for maximising benefits. |
 | Prepare for audits Emissions disclosures will be closely scrutinised under new sustainability standards. |
Digitalisation: Innovating for Efficiency and Security
The S$200 million Digital Innovation Fund supports the adoption of artificial intelligence (AI), blockchain, and the Internet of Things (IoT) to enhance supply chain efficiency. However, companies must also address cybersecurity risks.
What companies need to know:
 | Embrace technology AI, blockchain, and IoT streamline operations and improve tracking. |
 | Strengthen cybersecurity Protect systems from cyber threats. |
 | Ensure compliance Digital projects must adhere to procurement and data governance regulations to avoid compliance issues. |
Infrastructure Expansion: New Opportunities and Compliance
Singapore is investing S$1.5 billion into the Tuas Port expansion and smart logistics hubs to maintain its position as a global maritime leader.
For logistics companies in public projects:
 | Adhere to compliance standards Follow procurement regulations and ensure transparency in asset management. |
 | Leverage opportunities Tuas Port expansion will bring new competition and markets. |
Workforce Upskilling: Training for a Digital and Green Future
To support a green and digital economy, SkillsFuture credits and payroll tax rebates are available for training employees in digital and green skills.
For logistics companies:
 | Upskill your workforce Take advantage of these incentives to train in digital and green technologies. |
 | Align training programmes With business objectives to qualify for tax incentives and prepare employees for the future. |
Tax Reforms: Adapting to International Challenges
The Maritime Sector Incentive (MSI) extension until 2030 offers stability, but global tax reforms, like OECD’s Pillar 2, require companies to reassess transfer pricing and tax strategies.
For logistics companies:
 | Revisit transfer pricing policies Ensure compliance with local and international tax rules. |
 | Adapt to global tax changes Update cross-border transaction structures to meet new tax requirements. |
Preparing for a Resilient and Sustainable Future
The 2025 Budget calls for innovation, sustainability, and workforce development. By investing in green technologies, adopting digital solutions, and ensuring compliance, logistics companies can position themselves for success in a competitive global market.
Key steps for logistics companies:
 | Go green Invest in sustainable practices and technologies. |
 | Digitise securely Leverage digital tools while ensuring cybersecurity. |
 | Upskill Use government incentives to equip employees for the future. |
| Ensure compliance Follow regulations in infrastructure projects and adapt to tax reforms. |
