SINGAPORE BUDGET 2026

FOREWORD

The Singapore Budget 2026, delivered by the Prime Minister and Minister for Finance Mr. Lawrence Wong on 12 February 2026, comes at a pivotal moment of the nation’s fiscal and economic trajectory. In the face of a challenging and fragmented global economy mark by geopolitical tensions, supply chain pressures and uneven demand, Budget 2026 reaffirms the Government’s stance on prudence, resilience and forward-looking investment.

Budget 2026 highlighted that global economic fragility – including slower growth in major markets, rising protectionism, and strategic decoupling – presents both risks and opportunities for a small, and open, economy like Singapore.

The theme of Budget 2026, “Securing Our Future Together in a Changing World”, reflects the aspirations and collective vision to foster a partnership with individuals, communities and enterprises to thrive amidst global challenges.

Singapore’s recent economic performance illustrates this balance of resilience and adaptability. The economy grew robustly in 2025. GDP is revised by the Ministry of Trade and Industry to 5% from 4.8% earlier, a stronger-than-expected outcome underpinned by manufacturing (especially a strong Artificial Intelligence-related electronics demand), wholesale trade, and finance and insurance sectors. Building on this momentum, the Government has also achieved a significant fiscal outcome. For Financial Year 2025, Singapore expects a budget surplus of S$15.1 billion – more than double of the earlier estimate, reflecting strong tax revenues (especially from corporate income tax), higher vehicle quota premium receipts and solid assets-related returns. This figure stands as one of the largest absolute surpluses in recent history, representing 1.9% of GDP, and underscores the strength of Singapore’s public finances. For Financial Year 2026, a smaller surplus of S$8.5 billion, or 1% of GDP, is projected, confirming the need to exercise fiscal prudence notwithstanding strategic spending on key priorities.

Supporting Individuals and Strengthening Social Fabric

Budget 2026 delivers targeted support to help Singaporean households navigate current cost-of-living pressures, and build long term financial resilience. Enhanced support includes household assistance schemes, cash payouts, rebates and community-level vouchers aimed particularly at lower- and middle-income families. Investment in upskilling and lifelong learning continues to be a priority, ensuring that workers can adapt to new opportunities and technological shifts. The Government will also increase funding for community organisations, social services and cultural programmes to strengthen social cohesion and support vulnerable individuals. These initiatives demonstrate a commitment to inclusive growth, ensuring that broad segments of society share in Singapore’s prosperity.

Empowering Companies, Workforce and Start-ups

For the corporate sector, Budget 2026 seeks to support and maintain the competitiveness of Singapore companies, from small and medium enterprises (SMEs) to high-growth startups, for success in a more complex global environment. Budget 2026 introduces a 40% corporate income tax rebate for qualifying firms in Year of Assessment 2026 with a minimum benefit of S$1,500, extends grants for overseas market expansion, and provides enhanced support for adoption of digital and Artificial Intelligence technologies that boost productivity.

Labour market strategies are also front and center. Manpower policies are refined in response to structural shifts in the workforce. These include updates to foreign workforce criteria, and initiatives to support employment of locals. Key employment, and skills, agencies will be merged with the aim of creating a seamless ecosystem for training, job placement and career progression.

Homegrown startups, and innovation-driven enterprises, are also a priority. Budget 2026 boosts capital access through enhancements to the Startup SG Equity Scheme, the Anchor Fund to attract and anchor high-quality listings, and target incentives to foster AI driven enterprises. By supporting growth stage and high potential companies, Singapore aims to deepen its attractiveness as a hub for global innovation and entrepreneurship.

Looking Ahead

Amid slower global growth forecast, and intensifying global competition for talent and investment, Budget 2026 strikes a balance between short-term support and long-term strategic positioning. Budget 2026 reaffirms the nation’s core strengths: a flexible workforce, strong fiscal foundation and a commitment to social cohesion. These pillars will be essential as Singapore navigates new economic realities and secures sustainable prosperity for all.

Jack Lam

Managing Partner

23 February 2026

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© 2026. This publication is contributed by Acutus Tax Services Pte. Ltd.  All rights reserved.

Click here to view the Singapore Budget 2026 publication.