LIVE UPDATES: Singapore Budget 2026

All eyes are on Prime Minister Lawrence Wong as he prepares to deliver the 2026 Budget Statement.

Singapore Business Review is tracking developments from Singapore’s 2026 budget statement live as they are announced.

Various groups have laid out their expectations for this year’s budget, with some seeing more funding in accelerating technology adoption.

Experts said Singapore is seen to fuel the adoption of artificial intelligence (AI) and transformation, as some call for targeted support under the 2026 spending plan to build AI readiness, including a dedicated fund for medium-sized enterprises.

The government is also expected to cut back on CDC vouchers as it shifts its focus to defence, infrastructure and AI.

When it comes to the labour market, the National Trades Union Congress has urged measures to strengthen job security and transition support for professionals, managers and executives. There are also 57% of firms that want more funding for financial support that will boost their efforts in digital adoption and skills upgrading.

The formal presentation of the budget kicks off at 3:30 pm, 12 February. Follow us live!

RECAP: Singapore Budget 2025

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3:14 PM

Prime Minister Lawrence Wong arrives at Parliament to deliver the 2026 Budget.

3:31 PM

Wong delivers the budget for the financial year from 1 April 2026 to 31 March 2027.

“This is our first budget in this new term of government. It comes as we enter a post SG 60 phase in our nation building journey.”

ECONOMIC OUTLOOK

• “Some of the positive momentum will continue into this year, but amidst heightened global uncertainties, we expect a more moderate outlook for 2026 growth is therefore projected at two to 4% with inflation at one to 2%.”
• Ambition to secure growth at the higher end of the two to 3%  range over the next decade.

SUPPORTING BUSINESSES

• “I will provide a 40% corporate income tax rebate in the year of assessment 2026.”
• Enhance the support levels for grant schemes that support companies to internationalise up to 70% for small and medium enterprises or SMEs, and up to 50% for non SMEs.
• Enhance the market readiness assistance grant to support companies not just to access new markets, but to deepen activities in existing overseas markets as well.
• Under the double tax deduction for internationalization scheme, companies automatically enjoy a 200% tax deduction for selected qualifying activities kept at $150,000.
•  Allow qualifying activities to be eligible for such automatic tax deduction claims and raise the cap to $400,000 we will enhance the enterprise financing scheme by increasing the maximum loan quantum for trade and fixed asset loans. 
• Provide more support for companies pursuing significant overseas ventures that require higher capital outlay.
• Gov't to launch a second $1.5b tranche of the Anchor Fund. This will also be a co-investment between the government and Temasek. 
• Gov't to enhance the progressive wage credit scheme, or the PWCs. 
• Raise the PWCs core funding support for this year from 20% to 30%.
• To extend the PWCs for two more years to 2028 and from next year, the gov't will raise the minimum wage increase to qualify for PWCs support from $100 to $200 this will better actually reward the firms that invest In their workers. 

FORGING TIES WITH OVERSEAS PARTNERS

• Later this year, we will sign a first of its kind, agreement on trade in essential supplies with New Zealand to ensure the continuity of critical trade flows between our two countries in times of crisis. 
• Step up engagement with fast growing markets, including in Latin America, Africa and the Middle East.
• Establish new embassies and strengthen our diplomatic and economic presence on the ground to take better advantage of emerging opportunities in these regions. 
• "We are working with our neighbors to deepen regional integration. This includes cooperating on projects like the Johor Singapore Special Economic Zone and the Batam Bintan and karimun free trade zones in Indonesia."

MANUFACTURING SUPPORT

• Singapore to invest $37b under the research, innovation and enterprise or RIE 2030 plan. 

ENTERPRISE FUNDING

• "We will now go further. I will set aside $1b to enhance Startup SG Equity and expand its scope to cover growth stage companies."
• Convene a new work group led by Minister chi Hong Tak, working closely with the industry to develop strategies to position Singapore as a leading centre for growth capital.

EQUITY MARKET

• Singapore will expand the Equity Market Development Programme with a $1.5b top-up to the financial sector development fund.

AI INVESTMENT

• Launch a new set of national AI missions. These missions will drive AI-led transformation in key sectors of the economy and push the boundaries of what is possible for Singapore.
• Singapore to focus on four sectors, advanced manufacturing, connectivity, finance, and healthcare. 
• Review regulations and create sandboxes so that companies can test AI innovation safely and responsibly within the government. 
• "We will therefore establish a new national AI Council, which I will chair to provide strategic direction and to drive Singapore's AI agenda for AI to truly transform our economy."
• Singapore to launch a new champions of AI program to support firms with the ambition to use AI to comprehensively transform their business. 
• Gov’t to expand the Enterprise Innovation Scheme to include AI expenditures as a qualifying activity for the years of assessment, 2027 and 2028 kept at $50,000 per year of assessment. 
• Expand the PSG to support a wider range of digital and AI enabled solutions.
• Singapore will build on its pilot Lorong AI hub and establish a larger AI park at one-north. "This will be a new cluster to catalyze ideas, forge collaborations, and translate AI initiatives into practical solutions for businesses and public services."

LABOUR MARKET

• Help Singaporeans acquire new skills, adapt to new roles, and use AI as a tool to be more productive and effective at work.
• Every Singaporean who is willing to adapt and learn will continue to secure a good job and make a good living here in Singapore. 
• "For the next generation, we will strengthen AI literacy for students across all our institutions of higher learning."
• "At the workplace, we will help workers use AI to take over routine tasks."
• Singapore to start with the accountancy and legal professions in its push for AI workplace transition.
• Raise the LQS for full-time local employees from $1,600 to $1,800.
• "We will go further to enhance the basic tier of the scheme and increase the hourly allowance for workers who upgrade their skills."
• Gov’t to merge SkillsFuture Singapore and Workforce Singapore into a new statutory board, jointly overseen by MOE and MOM.
• To extend the Senior Employment Credit to the end of 2027 to support employers who continue to employ senior workers.
• Raise the employment pass, or EP, minimum qualifying salary for new applicants, from $5,600 to $6,000, from January 2027.
• "For the financial services sector, which has higher salary norms, we will raise the minimum qualifying salary from $6,200 to $6,600."
• The qualifying salaries for older EP applicants will be raised in tandem for renewal applications. The changes will apply a year later in 2028 to give businesses more time to adjust.
• "We will raise the qualifying salaries for S Pass holders from January 2027 the minimum qualifying salary for new S Pass applicants will be raised from $3,300 to $3,600 and for the financial services sector, this will be raised from $3,800 to $4,000 qualifying salaries for older S Pass applicants will be raised in tandem with renewal applications affected one year later from 2028."
• Adjustment of work permit levies for the Marine and process sectors. Levies for Basic Skilled workers will be raised by $100 and $150 for the manufacturing and services sectors, respectively.
• The gov't will help shape and develop life cycle investment products under a new scheme for CPF members. Later this year, the CPF board will engage the industry and invite expressions of interest from potential providers.
• Select two to three credible providers to keep choices simple for members. 

SKILLSFUTURE

• Redesign the SkillsFuture website to make AI learning pathways clearer and easier to access so that Singaporeans can quickly find courses that match their work needs and proficiency levels.
• Provide Singaporeans who take up selected AI training courses six months of free access to premium AI tools.
• "We will continue to enhance the Level Up program from next month. The mid-career training allowance will be extended to those who take up training, not just full-time, but also part-time training, and we will also expand coverage to include more industry-relevant courses."

FAMILY SUPPORT

• Provide another $500 in Child Life SG credits to families for each Singaporean child aged 12 and below.
• "From the start of next year, we will extend means-tested preschool subsidies to more families by raising the monthly household income threshold to $15,000 this will benefit more than 60,000 families."
• "We will raise the monthly household income threshold for Student Care fee assistance with $6,500."

ComLink+

• Povide a new payout of $500 per quarter for all ComLink+ families.
• Enhance the additional payouts that families receive when they make concrete progress in their goals of maintaining stable employment and good preschool attendance for their children. 
• Provide more of these payouts in cash while continuing to set aside monies in their CPF accounts.
• "With these enhancements, a family with two children under ComLink+ can receive around $10,000 per year in cash and CPF top ups whilst their children are in preschool."

SUPPORT FOR PWDs AND ELDERLY

• Gov’t to expand capacity in community-based facilities, keep services affordable, and support graduates of special education schools to secure meaningful employment and live well in the community. 
• "I will top up the long term care support fund by $400m to fund the additional subsidies."
• Provide a CPF top-up of up to $1,500 for Singaporeans aged 50 and above, and with CPF retirement savings below the basic retirement sum.
• Proceed with the next step of planned CPF contribution rate increases for senior workers in 2027.
• The gov't will also continue to provide the CPF transition offset to employers, covering half of the increase in employer contributions for 2027.
• Offer more investment options for CPF members who wish to grow their savings further.

ADDRESSING RISING COSTS

• "I will provide a cost of living, special payment comprising $200 to $400 in cash to Singaporean adults earning up to $100,000 in assessable income and who do not own more than one property."
• There will be additional U Save rebates to help households with their utilities expenses. 
• Eligible HDB households will receive 1.5 times the regular amount of U Save rebates, or up to $570 this financial year. 
• "I will provide another $500 in CDC vouchers. This will be for all Singaporean households in January 2027."

DEFENCE

• Invest decisively in capabilities that are essential to Singapore's defence, and that includes strengthening the ability to deploy counter and operate alongside unmanned systems across all domains.
• "For now, we expect to keep defence spending at about 3% of GDP, but we are prepared to spend more if the need arises."

DIGITAL SECURITY

• Singapore to strengthen cyber security posture by deepening capabilities, improving coordination across agencies and better safeguarding our most critical systems. 

CLIMATE CHANGE

• We will continue to do our part, not only to address climate risk, but also to secure our longer term resilience and competitiveness.
• A key pillar of our climate strategy is the carbon tax… Firms are investing more in low carbon solutions and improving energy efficiency.
• The tax has just been raised to $45 per ton for this year and next, and the plan is to reach 50 to $80 per ton by 2030.
• "For businesses, we will extend the energy efficiency grant and support for green loans under the enterprise financing scheme."
• "Beyond 2027, we are assessing Singapore's Carbon Tax trajectory carefully in light of international developments."
• "If global climate momentum continues to weaken, we may need to position ourselves towards the lower end of the $50 to $80 per ton range by 2030."

ENERGY

• "We have reached our 2030 solar deployment target of two gigawatt peak ahead of schedule."
• Singapore raises its solar deployment target to three gigawatt peak by 2030.
• "We are also advancing plans to import low-carbon electricity from the region."
• "We are building up capabilities in nuclear energy to be able to assess its safety and viability for Singapore."
• The gov't has initiated cooperation with the US and France and are discussing similar arrangements with other partners like South Korea.

TRANSPORT

• "We remain committed to achieving 100% cleaner vehicles by 2040."
• Incentives are in place to encourage early adoption of electric vehicles and charging infrastructure is being expanded nationwide.
• In aviation, we are supporting demand for sustainable aviation fuel with a target of 1% sustainable fuel used for flights departing Singapore this year.
• In shipping, we are partnering with the industry to develop a low-carbon ammonia bunkering solution on Jurong Island. If successful, Singapore will be amongst the first countries in the world to supply ammonia commercially as a fuel for international shipping.

HERITAGE

• "We will open the revamped Malay Heritage Center later this year and we will work with the Singapore Chinese Cultural Center to expand its reach and engagement."

SPORTS

• Continue to roll out the sports facilities master plan so that Singaporeans can more easily access affordable and quality sports facilities.
• Gov’t to open new Punggol Regional Sports Centre, the Toa Payoh Integrated Development sports facilities in Farrer Park and Tengah, as well as revamped sports centres in Haogang and Queenstown. 
• Expand the dual use scheme so that Singaporeans can conveniently access sports facilities in schools.
• "We will complement these facilities with more sports programming."

IPC

• "We brought 250% tax deductions for qualifying donations to institutions of a public character, or IPCs and eligible institutions."
• "We will extend this scheme for another three years until end 2029."
• The gov't earlier used a corporate volunteer scheme, which provides 250% tax deductions when employees volunteer or are seconded to IPCs. "We will extend this corporate volunteer scheme for another three years until end 2029."

COMMUNITY-BUILDING

• Launch a new $50m SG Partnerships Fund. This is to catalyse ground up initiatives and help them build sustained capabilities and impact.
• Will launch the next round of youth panels later this year, enabling more young people to step forward and make a difference.

FISCAL POSITION

• "We have a tax and transfer system that is fair, progressive, and anchored on shared responsibility."
• "This year, I will adjust vehicle taxes. Currently, car buyers are taxed through the additional registration fee to encourage timely renewal of the vehicle population so that it is safer and less pollutive."
• "We will provide a preferential additional registration fee or path rebate for cars deregistered by their 10th year."
• "I will reduce the PARF rebate by 45 percentage points." 
• Wong will lower the PARF rebate cap from $60,000 to $30,000 and this will apply to all cars registered with certificates of entitlement obtained from the next bidding exercise.
• To implement a 20% increase in tobacco excise duty across all tobacco products, with effect from today. 
• "For FY 2025, we expect higher revenues partly due to the better than expected economic performance."
• Wong expects to end FY 2025 with a surplus of $15.1b or 1.9% of GDP.
• PM expects a smaller surplus of $8.5b or 1% of GDP for FY 2026.
• "Our role remains to keep the budget balanced over time and across the ups and downs of the economic cycle."
• Gov’t to proceed with the implementation of the top up tax under pillar two of BEPS. This will raise the effective tax rate for large multinational enterprises operating in Singapore to 15% so higher corporate tax collections from FY 2027 onwards is expected.
• "We begin this term of government in Singapore on a firm fiscal footing."

5:01 PM

Wong ends his Budget speech.