Singapore Budget 2026
Singapore Prime Minister and Minister for Finance Lawrence Wong delivered the 2026 Budget Statement on February 12, 2026. The budget focuses heavily on three pillars: harnessing AI, supporting families and seniors, and strengthening business competitiveness in a fragmented global economy.
Here are related to business
Business & Enterprise Support
The budget aims to help firms "optimise" (to use our word!) their operations through technology and global expansion.
Corporate Income Tax (CIT) Rebate: A 40% rebate for YA 2026, capped at $30,000. Companies with at least one local employee also receive a minimum cash grant of $1,500.
AI Adoption:
- Champions of AI Program: A new initiative to help leading firms undergo end-to-end AI transformation.
- Enterprise Innovation Scheme (EIS): Expanded to include AI expenditures, offering 400% tax deductions on the first $50,000 of qualifying AI costs.
Internationalisation:
- Market Readiness Assistance (MRA): Enhanced co-funding support (up to 70% for SMEs) until March 2029.
- Double Tax Deduction (DTDi): Higher cap and more qualifying activities for automatic tax deduction claims.
Workforce & Employment Updates
Significant changes were announced for salary benchmarks and training:
Local Qualifying Salary (LQS): Increased to $1,800 for full-time local employees.
Work Pass Minimum Salaries:
- S Pass: Increasing to $3,600 ($4,000 for Financial Services) from January 2027.
- Employment Pass: Age-tiered salary thresholds will also be raised from January 2027.
SkillsFuture: Workforce Singapore and SkillsFuture Singapore will merge to streamline career development and training pathways.