Singapore announces more support for businesses in FY2026 Budget

Businesses will receive a 40% corporate income tax rebate in the year of assessment 2026 to help with cost pressures and operating challenges, the Singapore PM and Minister for Finance Lawrence Wong, announced in his FY2026 Budget Statement.

"Every active company that employed at least one local employee last year will receive a minimum benefit of S$1,500. The total benefit for each company will be capped at S$30,000," he said.

"This will provide short-term relief, as we press on with our restructuring and transformation efforts".

The Singapore government also recognised the challenges that businesses face as they internationalise. Wong said there will the Market Readiness Assistance grant would be extended to support companies in existing overseas markets in addition to its current remit on accessing new markets.

More activities will also be added to the Double Tax Deduction for Internationalisation scheme, under which companies automatically enjoy a 200% tax deduction for eligible activities, capped at S$150,000. "We will allow more qualifying activities to be eligible for such automatic tax deduction claims and raise the cap to S$400,000," Wong said.

The Enterprise Financing Scheme will also see the maximum loan quantum for trade and fixed asset loans increased. Wong also shared that there will be more support for companies "pursuing significant overseas ventures that require higher capital outlay".

There will be more help for startups at the growth stage, Wong added. Startups can now get early-stage funding easily, but not when they need to scale. To catalyse growth capital in Singapore, Wong said an additional S$1 billion is earmarked for the Startup SG Equity scheme, under which the government provides initial capital to catalyse and crowd in private funding for promising startups. The scheme will now cover growth-stage companies as well.

"Beyond this, we will take a more systemic approach to strengthening our growth capital ecosystem. We will convene a new work group led by Minister Chee Hong Tat, working closely with the industry, to develop strategies to position Singapore as a leading centre for growth capital," Wong said.

Another initiative which will enjoy more funding is the Anchor Fund, which was set up to attract and anchor high-quality listings. A second S$1.5 billion tranche will go to the Anchor Fund, Wong said, and as with the first tranche, will be a co-investment between the Singapore government and Temasek.

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