Singapore Budget 2026 provides relief and looks to the future
Last updated on 31 March 2026
Singapore’s Budget 2026 introduces a range of measures to help businesses manage rising costs while encouraging investment in productivity and growth. Businesses that assess and act early are more likely to benefit from these schemes, while those that delay may find that opportunities are limited or no longer available.
Some of these relevant enhanced measures providing relief to businesses, as well as support for their digitalisation, innovation, and expansion activities are summarised below.
Corporate Income Tax (CIT) Rebate and Cash Grant
To ease near-term financial pressure, companies are granted Corporate Income Tax (CIT) Rebate of 40% of tax payable and Cash Grant for YA2026.
The maximum total benefits that a company can receive from CIT Rebate and Cash Grant is capped at the lower of 40% of tax payable for YA2026 and $30,000. For companies which are not profitable or have no chargeable income, the Cash Grant would still be awarded if it has employed at least one local employee and had made CPF contributions to the employee (excluding shareholders who are also directors of the company) in 2025.
This provides immediate cash flow relief, particularly for SMEs. However, as this is a one-off rebate and grant, it should not be relied upon as a recurring form of support.
Enhancements to Support Schemes for Internationalisation
Various existing support schemes will be enhanced to support businesses to strengthen and widen their presence in overseas markets. These schemes include:
- Market Readiness Assistance (MRA) Grant
- Business Adaptation (BizAdapt) Grant
- Global Innovation Alliance (GIA) Schemes
- Double Tax Deduction for Internationalisation (DTDi) Scheme
Market Readiness Assistance (MRA) Grant
Previously scheduled to lapse after 31 March 2026, the MRA is extended until 31 March 2029, with enhancements to provide funding support of up to 70% of eligible costs, up from a previous cap of 50%, capped at $100,000 per company per new market.
Eligible costs supported by the grant comprise costs incurred by companies in their overseas expansion efforts in the areas of market entry, marketing and promotion as well as business development. Local group annual sales turnover not exceeding $100 million or with group total employment size not exceeding 200 employees would be eligible for MRA grant.
In the second half of 2026, the Enterprise Development Grant (EDG), Productivity Solutions Grant (PSG) and the MRA, would be combined into a single grant scheme, the new EDGE grant programme. At the implementation of EDGE, the MRA eligibility will be extended to local non-SMEs with support of up to 50% of eligible costs, and the “new to target overseas market” criterion will be removed, widening the scope of the grant to support local companies in strengthening their presence in existing overseas markets.
Business Adaptation (BizAdapt) Grant
BizAdapt is designed to help companies to adapt to the impact of tariffs through business operations and supply chain adjustments. The grant provides support on costs incurred for third-party advisories and reconfiguration efforts incurred. BizAdapt is applicable up to 6 October 2027 and from 1 April 2026, the grant, capped at $100,000 per company, is enhanced to increase to a cap of 70% for SMEs and 50% for non-SMEs, from the previous cap of 50% and 30% respectively.
Global Innovation Alliance (GIA) Schemes
GIA Schemes are designed primarily for Singapore-based tech startups to connect with overseas partners to test and commercialise their solutions.
Facilitating companies’ expansion into a choice of 50 overseas markets, GIA provides customised programmes for participating companies to establish connections with partners in their chosen overseas markets. Through the platform, companies could receive information and advice to accelerate and refine their expansion into overseas market as well as to establish collaborative partnership in product research and development.
The schemes provide funding support to approved applicants, for qualifying costs of up to 70% for SMEs and 50% for non-SMEs, enhanced from the previous cap of 50% and 30% respectively.
Double Tax Deduction for Internationalisation (DTDi) Scheme
DTDi is a tax incentive scheme that allows eligible companies to deduct 200% of the qualifying expenses they incurred against their taxable income. The DTDi covers expenditures that would be incurred across the companies’ staging, marketing and presence establishment stages, and the qualifying expenditures are categorised into 17 qualifying activities. “Employee Overseas Posting” has been subsequently subsumed under “Overseas Trade Office”.
Budget 2026 has enhanced the scheme with the Automatic DTDi expanded to cover all qualifying activities except for “Overseas Trade Office” and “E-Commerce Campaigns”, which would still require pre-approvals. The expanded scope will take effect from Year of Assessment 2027 with the enhanced cap of $400,000 per company. Pre-approvals will still be needed for activities exceeding the cap.
Enhancement of various other schemes/grants, including:
- Energy Efficiency Grant, which has been extended to 31 March 2027, supporting the adoption of energy efficient equipment in 6 pre-approved sectors (i.e. construction, food services, retail, manufacturing, maritime sectors and users of data centres);
- Enterprise Financing Schemes (EFS), which co-share loan default risk with participating financial institutions, facilitate access to financing for Singapore companies for specific purposes. Various EFS facilities (i.e. Trade Loan, Green, Merger & Acquisition and SME Fixed Assets) have been enhanced, which includes expansion of availability period and loan caps;
- Enhanced Visual Merchandising (EVM) programme and Heartland Enterprise Placemaking Grant (HEPG), which support retail shops in HDB estates, subsidising qualifying costs incurred in the development of merchandising/marketing strategies, including storefront revamp and marketing content. The grants have been enhanced in percentage of qualifying costs and in the cap amount, respectively; and
- Expansion of the scope of various programmes, such as the Enterprise Innovation Scheme (EIS) and Productivity Solutions Grant (PSG), to include and support Artificial Intelligence (AI) adoption. More details will be released in the coming months by the respective agencies.
What do measures mean for businesses?
Taken together, these measures reflect a deliberate balance between short-term relief and long-term capability building.
The CIT rebate and cash grant provide immediate support, helping businesses manage cash flow pressures. However, the more substantial opportunities lie in transformation-related schemes which support productivity improvements, innovation, and expansion.
The key takeaway is this: immediate relief helps stabilise the business, but the longer-term value comes from acting on the available transformation and innovation support.
Businesses that focus only on cost relief may see limited long-term benefit. In contrast, those who use this window to improve processes, adopt technology, or explore new markets are more likely to strengthen their competitiveness over time.
Common risks for SMEs include focusing only on short-term relief measures while overlooking transformation support, delaying action on grants, and misunderstanding eligibility criteria.
What Businesses Should Do Now
Businesses should note that most of these schemes require applications to be submitted before project commencement, and approvals are not automatic. Delays in planning or submission may result in missed opportunities, particularly where funding is limited or subject to periodic review.
Get support today
Budget 2026 builds on our past efforts to strengthen Singapore’s economic foundations and positions us for the next phase of development in a rapidly changing world. Businesses that act early and leverage these schemes will be better positioned to grow and compete. Reach out to your professional service providers today to explore how these measures could support your digitalisation, innovation, and expansion plans.
