Singapore’s next growth chapter: What international businesses should know from Budget 2026

To help companies manage cost pressures, Singapore’s Budget 2026 offers all eligible companies a 40 per cent Corporate Income Tax rebate, with the total benefit capped at S$30,000. Companies that have employed at least one local employee in CY2025 will receive a minimum benefit of S$1,500 in the form of a CIT Rebate Cash Grant.

Take a look at the key Budget 2026 measures for businesses and read on to learn about the longer-term initiatives Singapore is implementing to help companies harness new technologies, access growth capital, and scale their operations across Asia’s fast-growing markets.
 

1. How is Singapore accelerating enterprise deployment of AI?

Singapore now hosts over 60 AI Centres of Excellence in Singapore established by leading technology and industrial companies, including firms such as Prudential, Grab, and Global Foundries, creating a strong ecosystem of talent, research, and enterprise adoption. Budget 2026 builds on this base with new measures to accelerate deployment and further attract AI activities. 

National AI leadership to drive a coordinated strategy

A National AI Council chaired by Prime Minister Lawrence Wong will steer the country’s AI agenda. The council will coordinate efforts across government agencies covering research, regulation, talent development, and industry adoption. 

For businesses, this ensures clear national direction and coordinated policy support for AI development and deployment.

Sector-wide National AI Missions to accelerate innovation and transformation

These include:

• Advanced Manufacturing
• Connectivity and Logistics
• Finance
• Healthcare

These sectors already have strong industry ecosystems in Singapore, making them ideal environments to pilot and scale AI applications in real-world settings. The government will develop mission-specific ecosystems, such as access to datasets, compute resources, and regulatory sandboxes for companies to test AI innovations safely and responsibly.

The advanced manufacturing AI mission aims to accelerate innovation and build best-in-class factories that can compete globally. One key enabler is the (AIMfg), which has supported close to 30 firms in developing and adopting AI-enabled solutions since its launch in 2024. AIMfg will expand its suite of common AI models to help more manufacturers address their needs. 

Singapore will also build capabilities in embodied AI, through investments in R&D and providing shared infrastructure to test new technologies – beginning with the Advanced Manufacturing, Aviation, and Maritime sectors.

A “Champions of AI” programme will support enterprise transformation

This initiative will support selected Singapore-based companies that make AI a core driver of productivity, innovation, and revenue growth. Firms will cover:

• Leadership capability-building for AI-driven business transformation
• Development and implementation of tailored, long-term roadmaps to scale AI transformation projects, to drive growth and value creation across key business verticals
• Partnership and support from AI transformation experts and solution providers to identify, prioritise, and execute on key impactful projects
• Upskilling for employees in AI to enable organisational transformation

Lowering the cost for all companies to invest in AI

The Enterprise Innovation Scheme is being enhanced. Companies can claim 400 per cent tax deductions on qualifying AI spend, capped at S$50,000 per year for YA2027 and YA2028. This lowers the cost for companies integrating AI into their operations.

The Productivity Solutions Grant (PSG) scheme will be expanded to lower the cost for local SMEs to adopt digital and AI solutions that can help them work smarter and compete better. It aims to raise the overall technological capability of the companies that are suppliers, partners, and service providers of MNCs.

A dedicated AI cluster at the One-North business park

The government plans to expand Singapore’s AI ecosystem through a new AI park at the called Kampong AI, complementing the existing Lorong AI initiative. The hub, comprising both work and living spaces, will bring together startups, research institutes, multinational technology firms, and investors in a single innovation cluster designed to accelerate collaboration.
 

2. How is Singapore strengthening its talent base for the next phase of growth?

AI capability-building will extend across the workforce

The new National AI Impact Programme will strengthen AI capabilities for up to 10,000 enterprises over the next three years, and support 100,000 workers to become AI-bilingual. This will be done through three support mechanisms:

• A new Digital Leaders Accelerator Bootcamp to help business leaders implement AI
  
• Providing grant support for SMEs to access a wider range of proven cost-effective AI solutions
  
• Enhancing the TechSkills Accelerator programme to help non-tech workers develop practical AI capabilities, starting with the legal and accountancy professions.

Continued support for workforce transformation and upskilling

Singapore has set aside over S$400 million for an Enterprise Workforce Transformation Package to help companies transform their workforce and redesign jobs.

Lower-wage workers will benefit from enhanced wage and training support, including higher training allowances, while the Mid-Career Training Allowance will be enhanced for those taking part-time courses, with coverage expanded to include more courses.

The Overseas Markets Immersion Programme, which helps employers with the costs of developing globally minded talent, will be expanded to provide earlier access to international experience for young professionals.

Read more: Partnering businesses and workers to thrive in a changed world.
 

3. How is Singapore expanding the pool of growth capital?

By strengthening its position as a regional capital market and growth financing hub, including through:

A S$1 billion boost for early and growth-stage startups

The government will enhance the Startup SG Equity scheme with S$1 billion, expanding its scope beyond early-stage startups to support growth-stage companies, with a focus on deep tech. This aims to address funding gaps for companies scaling internationally.

A second S$1.5 billion tranche of the Anchor Fund

The government will launch another S$1.5 billion tranche of the Anchor Fund, co-invested with Temasek, to attract high-quality listings to the Singapore Exchange (SGX).

A S$1.5 billion top-up to the Financial Sector Development Fund

This will strengthen the asset management industry and increase investor participation in Singapore’s equities market. This builds on the Monetary Authority of Singapore’s Equity Market Development Programme launched in July 2025, and the establishment of the SGX-Nasdaq dual listing bridge, to facilitate greater access to both Asian and US capital markets.
 

4. How is Singapore strengthening its role as a launchpad for regional expansion?

Anchoring high-growth companies and partnering them to scale from Singapore

EDB will step up efforts to identify and anchor high-growth global companies and scale-ups, working with venture capital and private equity partners. The aim is to anchor promising firms to build regional leadership, access talent and innovation ecosystems, and expand from Singapore as they grow.

More support for Singapore-based enterprises to internationalise, including:

• Grants to defray the costs of overseas market promotion, business development, and set up – read about the Market Readiness Assistance Grant
  
• Enhanced tax deductions for overseas expansion – read about the Double Tax Deduction for Internationalisation (DTDi) scheme
  
• Enhanced support to adapt business operations and strengthen supply chain resilience due to tariff issues – read about the Business Adaptation Grant
  
• Higher support levels to access global innovation ecosystems and market expansion opportunities across 50 countries – read about the Global Innovation Alliance (GIA)

Learn more about EnterpriseSG’s business refresh package.

Singapore is also forging new types of agreements with other countries and regions to deepen connectivity and regional integration – such as the Johor-Singapore Special Economic Zone (JS-SEZ). These efforts will open up more opportunities for businesses.
 

5. How is Singapore strengthening its role as a launchpad for regional expansion?

Singapore is proactively shaping how industries develop by investing in technology, supporting research, and providing financing. These efforts are aimed at building leadership in key growth sectors while promoting innovation and decarbonisation.

A five-year, S$37 billion Research, Innovation and Enterprise (RIE) 2030 masterplan covers key economic areas such as advanced manufacturing, semiconductors, biomedical sciences, sustainability technologies, and quantum computing, but also priorities such as active ageing.

Global companies can get support to partner local research institutions or establish R&D centres in Singapore to access funding programmes, research talent, and commercialisation pathways.

New Decarbonisation Grand Challenge

As part of RIE 2030, Singapore will invest S$800 million over five years to accelerate low-carbon technology development.

The Decarbonisation RIE Grand Challenge initiative will focus on technologies that can decarbonise the sectors responsible for most of Singapore’s emissions at scale - power generation and industrial processes. Examples include technologies such as hydrogen, solar, energy storage, carbon capture, and grid solutions. Funding will support early-stage lab research and more mature solutions.

There will also be a new programme - Singapore Pilots for Energy and Enterprise Decarbonisation -  (SPEED) – to further support development and piloting of promising, commercially-viable decarbonisation solutions.

Enterprise Financing Scheme–Green (EFS-Green) and Energy Efficiency Grant (EEG)

EFS–Green has been extended for five years, giving companies continued access to government-backed loans to finance green projects and sustainable technology investments. The scheme supports financing for areas such as renewable energy, energy efficiency improvements, and green infrastructure. Businesses can apply through participating financial institutions.

The EEG has been extended for one year. It supports businesses in adopting energy-efficient equipment. Companies in sectors such as manufacturing, food services and retail can receive co-funding for pre-approved solutions that reduce energy consumption and operating costs.

Applications are submitted through the Business Grants Portal with government support covering a portion of the equipment investment.
 

The bottom line for businesses

The broad message from Budget 2026 is clear: Singapore is investing not just to help businesses manage near-term costs, but to strengthen the conditions for long-term growth.

From AI deployment and deeper capital markets to workforce transformation, R&D, and decarbonisation, the latest measures reinforce Singapore’s position as a trusted base for companies building, innovating and expanding in Asia. For the workforce, the new initiatives are aimed at boosting capabilities and skills to move into higher-value activities in the AI era.

Read the success stories of businesses and founders that have seized opportunities in and around Singapore. Connect with EDB to learn how we can support your next chapter of growth.