Singapore Budget 2026
Building Confidence in a Post‑SG60 Era
Budget 2026 marks the beginning of Singapore’s post‑SG60 nation‑building phase, setting the strategic direction under the new term of Government. The Budget focuses on refreshing our economic engine, strengthening social resilience, and preparing Singaporeans to thrive in a rapidly changing global environment.
Anchored on six key pillars, Budget 2026 aims to support Singaporeans today, prepare our society for tomorrow, and enable us to navigate a changed world with confidence — together securing a stronger, fairer, and brighter future for all.
1. Refreshing Singapore’s Economic Strategy
To enhance business competitiveness and encourage international growth:
- Corporate Income Tax Rebate of 40%, capped at S$30,000, net of the S$1,500 cash rebate for eligible companies.
- Enhanced support for internationalisation, including improvements to the Double Tax Deduction for Internationalisation (DTDi) scheme, helping businesses expand overseas with greater confidence.
2. Harnessing Artificial Intelligence (AI)
Recognising AI as a critical lever to overcome Singapore’s resource constraints, ageing population, and tight labour market, the Government will roll out a new set of National AI Missions.
Key focus sectors
- Advanced Manufacturing
- Connectivity
- Finance
- Healthcare
Key business support measures
- Enhancements to the Enterprise Innovation Scheme (EIS), with new qualifying activities introduced for AI‑related expenditures in YA 2027 and YA 2028.
- Expansion of the Productivity Solutions Grant (PSG) to support businesses adopting pre‑approved IT solutions and automation tools.
- Complimentary subscriptions to premium versions of selected AI tools to accelerate digital adoption.
3. Building a More Resilient and Skilled Workforce
Budget 2026 strengthens workforce sustainability while balancing business needs:
- Increase in Local Qualifying Salary (LQS) thresholds.
- Extension of the Progressive Wage Credit Scheme (PWCS) until end‑2028, helping employers manage wage increases.
- Revisions to minimum qualifying salaries for Employment Pass and S Pass holders.
- Higher Foreign Worker Levy rates for selected industries to encourage productivity and workforce transformation.
4. Supporting Families
Targeted measures to ease cost pressures and support Singaporean families:
- One‑off S$500 Child LifeSG Credits for every Singapore Citizen child aged 0 to 12 in 2026.
- Enhanced preschool and student care subsidies, helping parents better manage childcare expenses.
- CPF Top‑Ups of S$500 to S$1,500 (based on eligibility) for Singaporeans aged 50 and above in 2026.
5. Protecting Singapore’s Security and Sustainability
To safeguard Singapore’s future resilience:
- Continued investment to strengthen cybersecurity capabilities, improve inter‑agency coordination, and protect critical national systems.
- Reinforced commitment towards 100% cleaner vehicles by 2040, supporting Singapore’s long‑term sustainability goals.
6. Strengthening the Singapore Spirit
Budget 2026 continues to foster unity, community, and shared responsibility:
- Expanded sports programming to complement sports facilities, encouraging participation across all ages and abilities.
- 250% tax deduction for qualifying donations to Institutions of a Public Character (IPCs) and eligible institutions, extended until end‑2029.
- Extension of the Corporate Volunteer Scheme for another three years until end‑2029, supporting meaningful corporate‑community partnerships.
Budget 2026 aims to “support Singaporeans today, prepare our society for tomorrow, and enable us to navigate this changed world with confidence”. It also aims to bring us together, as “Together we will secure a stronger, fairer, and brighter future for all”.
The Government expected higher revenue for year 2025 due to a better-than-expected economic performance. Overall, the Government expect a smaller surplus of S$8.5 billion, or 1% of GDP for financial year 2026.
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