Singapore Budget 2026 Insights

The message is clear – businesses are being encouraged to look beyond domestic growth and take a more deliberate approach towards international expansion.

Amid uncertainty from ongoing geopolitical tensions and evolving trade and customs dynamics, the enhanced support reflects the Government’s recognition of higher risks and costs associated with extending beyond our own borders.

The increased support levels for grant schemes, enhancement to the Market Readiness Assistance (MRA) grant and increased cap for the Double Tax Deduction for Internationalisation (DTDi) scheme will help alleviate immediate cash flow concerns which come with expanding into new markets. Besides making the claim for double tax deduction easier, the expanded list of qualifying activities may also allow more expenditure to qualify.

The additional resources for Startup SG Equity, the strengthened Equity Market Development Programme, and the new capital market enhancements collectively create a more robust environment for companies to move from startup to scale up.

EDB’s focus on anchoring high growth enterprises earlier in their journey will deepen Singapore’s economic base and reinforce our role as a global centre for innovation driven growth.

Growth stage companies are investments in Singapore’s future competitiveness. By helping innovative firms scale from Singapore, we are unlocking new opportunities for Singaporeans to take on high value roles, build deep skills, and grow meaningful careers.

The 1 percent mandated Sustainable Aviation Fuel (SAF) blending is a calibrated and credible step forward. Singapore not only becomes the first country in Asia to kick off mandated SAF blending in 2026, it also joins a select group of European countries that have implemented similar measures over the past year.

By creating guaranteed demand, the mandate encourages investment in the SAF eco-system – driving technology innovation and the sourcing of feed stock. The SAF levy ensures the policy is financially viable, given that SAF can cost up to four times more than conventional jet fuel.

While modest in scale, the initiative sends a clear signal of Singapore’s responsible climate commitment. It lays the groundwork for a regional cleantech ecosystem, while ensuing sustainable and financially tenable demand.

It is encouraging to hear that the government remains committed to its climate strategy despite slowing global momentum.

With carbon tax already at $45/tonne, the importance of maintaining competitiveness regionally and globally cannot be overstated. Monitoring international developments before committing to the next carbon tax rate rise is a sensible approach.

AI is revolutionising trade and customs by managing the complexity and scale of global data flows. But speed alone is insufficient — true compliance requires specialists who ensure that decisions are legally sound, strategically aligned, and trusted by regulators.

Importantly, AI only delivers reliable insights when data hygiene is strong. This requires a strong foundation of clean, consistent, and well structured data.

The second S$1.5 billion tranche into the Anchor Fund indicates a recognition that both public and private growth capital are essential to help Singapore firms capture expanding opportunities across Southeast Asia.

Strengthening the public capital markets alongside the availability of early-stage and growth funding is wise policy. It ensures that promising companies can scale from Singapore and reinforces our ability to attract and anchor future business champions here.

Budget 2026 sends a clear message that Singapore remains serious about climate action.

Setting the carbon tax at S$45 per tonne in 2026 and 2027 makes it the highest in Asia. Noting that future rates could land at the lower end of the S$50-S$80 range if global climate action weakens reflects the country’s calibrated approach.

Nonetheless, Singapore remains steadfast in its climate commitments, pacing its ambitions in line with global developments. Singapore’s energy transition will continue to advance, but the Government is clear that this will not be at the expense of economic competitiveness.

Budget 2026 highlights the rapid growth of advanced packaging and the semiconductor sector, backed by a significant increase in R&D investment. These advances bring both opportunity and heightened export control risks, particularly in sensitive technologies.

Here, AI also plays a critical role—supporting risk detection, monitoring compliance, and ensuring that innovation in semiconductors and advanced manufacturing remains aligned with global trade rules.

When robust data governance meets AI’s analytical power and human oversight, trade compliance, logistics, and technology governance become efficient, resilient, and future ready.

Quote #1

The energy transition is a critical challenge facing most countries as they try to balance security and affordability considerations while not losing sight of the sustainability commitments. A holistic portfolio of technology approach is critical to bring down the carbon foot-print of energy sector. While solar is a mature and cost competitive technology, its intermittent nature means we need to tap on other sources of green power like hydrogen, geothermal and possibly small modular nuclear.

These technologies are in various stage of evolution and commercially not attractive to be deployed at scale. Being ready for these technologies and having a policy framework to accommodate these technologies as they mature is a critical part of the energy transition strategy. Given the multiple variables, including technology trajectory, availability of feed stock and investment appetite, the path is likely to be uneven but the direction is clear.

Quote #2

Singapore is over reliant on natural gas as a primary fuel to power its energy needs. A decarbonisation pathway would entail moving away from fossil sources while embracing green energy options. By having a holistic approach comprising of – domestic solar, low carbon imports, and betting on new technologies – we are preparing ground for a stable, secure and sustainable transition to low carbon future.

Quote #3

Green transport has been a hallmark of our strategy and Singapore has done well to announce the 100% EVs by 2040 roadmap well in advance. It’s the right thing to adhere to the roadmap in the face of global uncertainties and economic headwinds. The advancement in EV technologies and our preparedness with EV charging infrastructure bodes well for a green and sustainable future for our businesses. We see further increased EV take up from both commercial and households.

The EV supply chain eco-system maturity and technology advancements imply more competitively priced transport options. Overall, the push to green energy and transport bodes well for both consumers and businesses. Consumers can benefit from best in technology innovation as we transition to environmentally friendly options while businesses could be not only more future ready but also leverage new opportunities for business growth in the decarbonisation sector.

Singapore’s latest climate measures enhance the nation’s competitive edge by positioning rising climate expectations as a strategic opportunity rather than a compliance cost.

The carbon tax is a signal for businesses to reduce carbon emissions while grants and green financing schemes enable businesses to invest in low-carbon technologies, develop critical capabilities, and drive innovation—strengthening their long-term resilience.

As climate risk becomes a universal business reality, the government’s long-term commitments provide the clarity and confidence needed for decisive action.

Singapore has already achieved its 2030 target of 2GWp solar deployment ahead of schedule and has now set its ambition to achieving 3GWp solar deployment by 2030. At the same time, it is exploring further diversification of its energy mix through hydrogen, nuclear and geothermal.

This is alongside plans to achieve 100% EV adoption by 2040. Budget 2026 makes it clear that competitiveness also remains key as the nation continues to pursue its climate and energy goals.

The support provided for sustainable aviation fuel, and the continuous effort to partner the industry to develop low carbon ammonia bunkering for international shipping, demonstrates that the growth that Singapore is aiming for doesn't always have to come at the sacrifice of sustainability.

Singapore has once again demonstrated its commitment to greening efforts, regardless of the weakening of the global climate momentum.

The move to pioneer low carbon ammonia bunkering solution in Jurong Island sends a strong signal of ambition and leadership. In doing so, new opportunities are created for local companies across the clean fuel value chain and our role as a global international maritime hub is strengthened.

Once successful, ammonia can be an important part of the shipping sector’s decarbonisation pathway, which gives shipowners and solution providers the confidence that Singapore is ready to enable the next generation of green shipping.

The Budget has increased support to nurture growth and innovation – for businesses and the Singapore workforce alike.

Target areas included high growth companies, businesses expanding overseas, and critical growth sectors while also developing Singapore’s talent pool and creating opportunities for Singaporeans to secure good jobs and progress professionally. These are all critical areas to secure Singapore’s on-going growth, prosperity, and position in the global economy.

Budget 2026 delivers a timely and forward-looking boost to Singapore’s workforce.

The Government’s commitment to inclusive growth is clear with the strengthened support for career transitions, expanded upskilling pathways, and renewed focus on helping mid-career and older workers stay competitive.

These measures will help Singaporeans confidently navigate rapid technological shifts with a focus on AI and accelerated automation while ensuring businesses continue to access a resilient, future-ready talent pool.