Cost-of-living special payment: Singaporeans to get up to $600, up from $400 announced in Budget 2026

The Government will be increasing the quantum of the cost-of-living special payment from $400 to $600 in light of the impact of the Middle East conflict on Singapore's economy, Senior Minister of State for Finance Jeffrey Siow said in Parliament on Tuesday (April 7).

"Given the uncertainty in the Middle East, it is still too early to update our projections of inflation in Singapore, or to quantify the full impact on households," he said during the ministerial statement.

"But we know the situation has amplified cost of living anxieties for Singaporeans."

This cost-of-living special payment, originally announced in Budget 2026, previously ranged from $200 to $400 in cash.

Following SMS Siow's announcement, a $200 increase in quantum will be provided to Singaporeans, changing the disbursement to a range between $400 and $600.

Only Singaporeans earning up to $100,000 in assessable income who do not own more than one property are eligible.

About 2.4 million Singaporeans will receive this additional payment, to be disbursed in September, SMS Siow added.

With the looming energy crisis and rising fuel prices, cost of living in the impending months are also a concern for households.

To reassure Singaporeans, the disbursement of the $500 CDC vouchers announced in Budget 2026 will be brought forward from January 2027 to June 2026, he stated.

Support for domestic transport sector

In particular, SMS Siow also highlighted how the rising price of fuel has had "an immediate effect" on the earnings of platform workers, private-hire car drivers and taxi drivers.

While the National Trades Union Congress has worked with platform and taxi operators to cushion the blow - through fuel vouchers and fare adjustments - the Government will also step in to provide assistance.

This will come in the form of a disbursement of $200 in cash to active platform workers, private hire car drivers and taxi drivers from the end of the month, Siow said.

He further added that certain essential bus services, such as those for school students, seniors, and persons with disabilities will receive temporary aid from the Government in co-funding cost increases so that these services can continue without disruption.

Tax rebates, energy efficiency grants

SMS Siow also shared measures that the Government is prepared to provide support for businesses that may feel the higher energy and logistics costs.

In order to help businesses manage cash flow, the Government will enhance corporate income tax rebates, from 40 per cent to 50 per cent for the Year of Assessment 2026.

The minimum benefit that a company with at least one local employee can receive will be raised from $1,500 to $2,000, and the total benefits cap for each company will be increased to $40,000, up from $30,000.

These enhancements will be disbursed quickly, as early as the end of the month, Siow added.

Separately, businesses that invest in energy efficiency will also stand to benefit from the Government's enhanced measures.

Under the energy efficiency grant, companies will be able to purchase new energy efficient equipment with financial assistance from the Government.

This grant will be expanded at its base tier, and extended until March 31, 2028, so more companies can benefit, SMS Siow said.

Presently, businesses can enjoy up to 70 per cent support to adopt pre-approved energy efficient equipment.The grant was previously extended for one year, from April 1, 2026 to March 31, 2027, as announced at Budget 2026.

Furthermore, the Government is also prepared to share any cost increases directly related to fuel costs or critical Government projects where delays or stoppages will affect the public interest.

This includes major Government infrastructure projects such as HDB Build-to-order projects, Siow explained, adding that the Building and Construction Authority will issue a circular with more details soon.

In total, the Government will be spending close to $1 billion in additional measures to alleviate the pressures created by the conflict, SMS Siow said.

"This is neither first crisis we have weathered, nor will it be the last," he added.

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khooyihang@asiaone.com