Grab Shares Rise Following Singapore's 2025 Budget Announcement

Shares of Grab Holdings Limited GRAB are trading higher Tuesday after Singapore's government announced a 50% corporate income tax rebate as part of its 2025 budget.

What To Know: According to Business Times, Singapore’s Finance Minister Lawrence Wong stated that the rebate, capped at S$40,000 per company, is designed to support businesses as they navigate rising costs and economic uncertainties. All active companies that employ at least one local worker in 2024 will receive a minimum benefit of S$2,000, regardless of whether they have taxable income. This measure is expected to provide cash flow relief for many firms, particularly small and medium enterprises, which grapple with inflation and higher operational expenses.

Analysts have responded positively to the tax rebate, noting that it builds on previous initiatives and could help companies reinvest in technology, workforce development, and productivity enhancements. Some experts, however, highlighted that the rebate's impact will be uneven, as it primarily benefits profitable businesses while providing limited relief for loss-making firms.

Grab, a major ride-hailing and delivery platform in Southeast Asia, stands to gain from the policy as it continues to expand its operations and manage cost pressures. The government's broader push to support businesses through tax incentives has contributed to investor optimism, driving the stock's upward movement.

GRAB Price Action: Grab shares were up 7.76% at $5.28 at the time of writing, according to Benzinga pro.