On 12 February 2026, Prime Minister Lawrence Wong presented a comprehensive package of measures to support businesses as part of the Singapore Budget 2026 announcement. The aim is to cushion rising costs, strengthen competitiveness, and drive operational transformation.
For the Year of Assessment 2026, businesses will receive immediate tax relief in the form of a 40% corporate income tax (CIT) rebate.
Companies that were active in 2025 and employed at least one local employee will receive a minimum benefit of SGD 1,500 in the form of a CIT Rebate Cash Grant. The total benefit per company, comprising the tax rebate and the cash grant, is capped at SGD 30,000.
This measure provides short-term relief amid rising costs while also supporting local employment.
The Government is further expanding its support schemes to help businesses enter overseas markets.
Market Readiness Assistance (MRA) Grant: The support level for local SMEs will be increased from 50% to up to 70% from 1 April 2026 to 31 March 2029.
Double Tax Deduction for Internationalisation (DTDi): From YA 2027, the cap for claims without prior approval will be raised from SGD 150,000 to SGD 400,000 per Year of Assessment.
The MRA grant will be enhanced to support companies with market entry and the expansion of their overseas presence. Eligible costs include, among others, international market entry, business development, and setting up operations abroad.
To address structural challenges such as limited natural resources, an ageing population, and a tight labour market, Prime Minister Wong will chair a new National AI Council to drive the national AI strategy forward.
Singapore will launch national AI missions in key areas such as advanced manufacturing, transport connectivity, finance, and healthcare.
A new Champions of AI programme will provide tailored support to help businesses comprehensively transform their business models using AI.
The Enterprise Innovation Scheme will be extended to AI-related expenditure incurred in YA 2027 and 2028, eligible up to an annual cap of SGD 50,000.
In addition, a wider range of digital and AI-enabled solutions will be supported under the Productivity Solutions Grant to help businesses automate processes and improve productivity.
To strengthen workforce skills, the SkillsFuture website will be redesigned so that citizens can more quickly find suitable courses based on their needs and competency level. Participants of selected AI upskilling courses will also receive six months of free access to premium AI tools.
To improve access to growth capital, the Government will top up the Startup SG Equity programme with an additional SGD 1 billion and expand its scope to include growth-stage companies. The programme is intended to catalyse private investment in Singapore-based technology start-ups with intellectual property and global market potential.
A further SGD 1.5 billion will be channelled into the Anchor Fund, which supports high-growth companies with capital and expertise to anchor their listing on the Singapore Exchange.
In addition, SGD 1.5 billion will be provided to expand the Equity Market Development Programme to strengthen Singapore’s fund management industry and increase investor participation in local equity markets.
Overall, Singapore Budget 2026 sets out a clearly structured two-pronged strategy. Short-term tax relief gives businesses immediate breathing space, while long-term investments in AI, internationalisation, and capital markets lay the foundations for sustainable growth. Singapore is thereby positioning itself once again as a proactive and strategically minded business hub.
