Govt to inject a further S$5 billion to build T5, develop S'pore air hub: Budget 2025

The government will inject a further S$5 billion to develop Singapore as an air hub, said Prime Minister and Minister for Finance Lawrence Wong in his Feb. 18 Budget statement.

This includes the construction of the upcoming Terminal 5 at Changi Airport.

Noting that T5 is expected to increase the airport's capacity by over 50 per cent, PM Wong said the government will top up the Changi Airport Development Fund by S$5 billion "to ensure sufficient resources to develop our air hub".

In 2023, the Ministry of Transport (MOT) announced that the Government will inject a further S$2 billion into the fund.

It will also provide a guarantee to Changi Airport Group (CAG) to lower the cost of borrowings needed to develop T5 and the supporting infrastructure in Changi East, with the president's concurrence.

"Our air hub is another key pillar of connectivity," PM Wong said.

"To unlock our growth potential, we must invest in world-class infrastructure and find innovative ways to overcome our resource constraints."

Initially announced prior to the Covid-19 pandemic but put on a two-year pause, construction for T5 will commence in the coming months.

The mega-terminal is slated to open in the mid-2030s.

It will be located at the upcoming 1,080ha Changi East development, which is currently under construction.

Top image via KPF's website