Singapore Budget 2026: What It Means for Businesses and How to Prepare
- enda416
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13 February 2026
Editor: ET
Singapore Budget 2026, themed “Securing Our Future Together in a Changed World”, reflects the Government’s focus on helping businesses stay resilient amid rising costs, global uncertainty, and shifting economic conditions. For local SMEs and growing companies, the Budget delivers targeted support in three key areas: managing business costs, expanding overseas, and strengthening the enterprise ecosystem.
This article breaks down the main measures in simple terms and explains what Singapore businesses should do next to maximise these benefits.
Further Reading: How Proper Records Protect Your Business During Audits in Singapore
Managing Business Costs: Corporate Income Tax Rebate for YA 2026
One of the most immediate reliefs for companies is the Corporate Income Tax (CIT) Rebate for Year of Assessment (YA) 2026.
What is the rebate?
Eligible companies will receive a 40% rebate on corporate income tax payable, capped at $30,000 per company.
To ensure that smaller and growing businesses benefit, the Budget also introduces a minimum benefit of $1,500 for active companies that employ at least one local employee in 2025.
Why this matters for SMEs
With higher operating costs—from manpower to rentals and compliance—the tax rebate directly improves cash flow. For profitable companies, the rebate reduces tax outlay. For smaller firms with lower taxable income, the minimum payout ensures meaningful support.
What businesses should do now
To benefit fully:
Ensure corporate tax filings are accurate and on time
Maintain proper accounting records for YA 2026
Confirm CPF contributions for at least one local employee in 2025
Businesses that already keep clean, up-to-date accounts will find it much easier to enjoy this relief without last-minute adjustments.
Connecting in a Changed World: Stronger Support for Overseas Expansion
As global supply chains and consumer markets evolve, Singapore is doubling down on helping local companies go international.
Higher grant support for overseas growth
The Budget raises grant support levels to:
Up to 70% for SMEs
Up to 50% for non-SMEs
This applies to approved programmes that help companies enter new markets, such as business development, market entry studies, and overseas partnerships.
Enhanced Market Readiness Assistance (MRA) Grant
The MRA Grant will be enhanced to help enterprises deepen their presence overseas, not just test new markets. This is particularly useful for businesses that have already expanded once and are looking to scale further.
Eligible costs may include:
Overseas market set-up
Legal and regulatory advisory
Marketing and branding efforts
Improved Enterprise Financing Scheme (EFS)
Access to financing remains a common challenge for SMEs expanding abroad. Budget 2026 enhances the Enterprise Financing Scheme by:
Increasing the maximum loan quantum for Trade Loans
Increasing the maximum loan quantum for SME Fixed Assets Loans
This helps businesses invest in overseas inventory, equipment, and long-term assets with greater confidence.
Practical Takeaway
Companies planning overseas expansion should:
Review their financial statements and projections
Ensure accounting records are investor- and bank-ready
Align expansion plans with grant and financing eligibility
Sound financial reporting is often the deciding factor in successful grant and loan applications.
Strengthening the Enterprise Ecosystem: Supporting Growth and Innovation
Beyond cost relief and overseas expansion, Budget 2026 invests heavily in building a stronger capital and startup ecosystem in Singapore.
$1.5 billion Anchor Fund
The Government will allocate $1.5 billion to the Anchor Fund to support public listings of high-growth companies in Singapore. This move aims to deepen local capital markets and encourage promising companies to list locally instead of overseas.
$1.5 billion for Equity Market Development
Another $1.5 billion will be committed to expanding the Equity Market Development Programme, improving market liquidity and investor participation. This benefits not only listed companies but also private firms planning future exits.
Expansion of Startup SG Equity
The Startup SG Equity scheme will be expanded to catalyse investments in early- and growth-stage deep tech startups. This is a significant boost for founders in technology, sustainability, and advanced manufacturing sectors.
Why this matters for businesses
Even if your company is not planning an IPO or raising venture capital now, these initiatives:
Improve access to funding over the long term
Strengthen Singapore’s startup and innovation ecosystem
Create more exit and partnership opportunities
For founders, proper governance, financial controls, and reporting become increasingly important as funding options expand.
Further Reading: Monthly vs Quarterly Accounting: What Works Better for SMEs
Turning Budget 2026 into a Business Advantage
Singapore Budget 2026 is not just about short-term relief—it rewards businesses that are well-managed, compliant, and growth-oriented.
To fully benefit, businesses should focus on:
Clean and accurate accounting records
Timely corporate tax and statutory filings
Strategic planning aligned with grants and financing schemes
Professional corporate services providers often highlight that many businesses miss out on Budget benefits simply due to poor documentation or late preparation.
Budget 2026 reinforces Singapore’s commitment to supporting businesses in a changed global environment. From tax rebates and cost relief to overseas expansion and ecosystem building, the measures are practical and targeted—especially for SMEs.
For Singaporean businesses, the key is preparation. Companies that maintain strong financial discipline and forward planning will not only benefit from immediate support but also be well-positioned for sustainable growth in the years ahead.
