STI retreats below 5,000 despite $4b Budget 2026 market boost

Prime Minister Lawrence Wong allocated $1.5 b to the Anchor Fund and $1 b to startups for SGX listings.

Singapore shares declined on Friday, 13 February, after briefly rising above 5,000 ahead of Thursday’s Budget 2026 statement.

The Straits Times Index (STI) opened the day at 4,985.360, then fell to 4,972.890 at around 9:09 a.m. and fell further to 4,959.870 at 9:55 a.m. The index slowly climbed to 4,961.255 at 10:25 a.m. and held at around 4,959.940 at 10:30 a.m.

The market movements coincided with the release of detailed measures in Budget 2026.

Prime Minister and Finance Minister Lawrence Wong said the Startup SG Equity Scheme will receive $1b in additional funding and will be expanded to cover growth-stage companies in addition to early-stage startups.

Wong also announced that the Anchor Fund will receive a second tranche of $1.5b from the government and Temasek to attract and retain listings on the Singapore Exchange.

The Financial Sector Development Fund will receive a $1.5b top-up to support the Monetary Authority of Singapore’s Equity Market Development Programme.

Budget 2026 also includes measures to accelerate technology adoption.

Singapore will launch national artificial intelligence (AI) missions across advanced manufacturing, connectivity, finance and healthcare.

Eligible firms can claim up to 400% tax deductions on qualifying AI-related expenditure under the expanded Enterprise Innovation Scheme.

The Productivity Solutions Grant will also cover a broader range of digital and AI-enabled solutions.

On corporate taxation, Budget 2026 introduces a 40% corporate income tax rebate for the year of assessment 2026.

Companies are eligible for a minimum rebate of $1,500 and a maximum of $30,000.

The government projects a budget surplus of $8.5b for fiscal year 2026, equivalent to about 1% of GDP.

Defence spending will remain around 3% of GDP, with additional resources allocated to cybersecurity and partnerships to strengthen national resilience.

Social measures include $500 CDC vouchers for all households from January 2027, with half the vouchers usable at supermarkets and the remainder at heartland merchants and hawkers.

Support for larger families, preschool subsidies and student care fee assistance have also been extended.

Budget 2026 measures are designed to support growth across capital markets, innovation, technology adoption, and household spending while maintaining fiscal prudence.

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