SG Budget 2025: New $745m private credit fund for high-growth companies

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Singapore is introducing a new S$1 billion (US$745 million) Private Credit Growth Fund to provide more financing options for high-growth local enterprises, said Finance Minister Lawrence Wong in his budget speech on February 18.

Wong, who is also the city-state’s prime minister, noted that the private credit market has gained traction globally as it offers innovative financing solutions to enterprises.

Yet few of these funds focus on Asia, and much less on Singapore-based enterprises.

“We now have a more vibrant financing ecosystem, backed by a growing network of angel investors, venture capitalists, and private equity firms,” Wong added. He also noted that companies need capital to grow.

The government has launched investment funds that invest in prominent companies alongside commercial partners. In the past five years, around US$1.3 billion have also been set aside to support enterprise growth through investment funds.

More details about the private credit fund will be announced by Singapore’s minister for trade and industry at the Committee of Supply.

See also: Forget startups as MBAs snap up SMEs in Singapore

Currency converted from Singapore dollar to US dollar: US$1 = S$1.34.

This story was republished with permission from The Business Times. It was moderately edited to reflect Tech in Asia’s editorial guidelines.