Budget 2026: Helping SMEs go abroad, $50m fund for ground-up community projects and other key things you may have missed

In the first Budget in this new term of Government, Prime Minister Lawrence Wong laid out how Singapore must continue to refresh its strategies and strengthen social compacts.

"Past success alone will not carry us forward. In a profoundly changed world, standing still is not an option," he said.

From support for businesses to addressing climate change, here are the things in Budget 2026 that you might have missed.

Support for businesses

Acting on key recommendations from the Economic Strategy Review committees, he announced measures which he said will achieve Singapore's ambitions to translate growth into good jobs and rising income.

There will be a 40 per cent corporate income tax rebate in the Year of Assessment 2026. Every active company that employed at least a local employee last year will receive a minimum benefit of $1,500.

The total maximum benefits for each company will be capped at $30,000.

There will be support for companies to go abroad: The Market Readiness Assistance grant will be increased from 50 per cent to 70 per cent for Small and Medium Enterprises until March 31, 2029.

Support levels for non-SMEs will remain at 50 per cent.

The Government will also invest $37 billion under the Research, Innovation and Enterprise 2030 plan, which amounts to 1 per cent of Singapore's GDP, to invest in emerging areas like quantum and decarbonisation solutions.

$1 billion will be set aside through the Startup SG Equity to cover growth-stage companies.

Climate change

PM Wong said that Singapore will not retreat from actions to address climate change, even while some countries are scaling back their climate ambitions.

For businesses, the Energy Efficiency Grant will support green loans under the Enterprise Financing Scheme — to help firms invest in energy-efficient and sustainable solutions.

Solar deployment target will be raised from 2 to 3 gigawatt-peak by 2030.

PM Wong reiterated the Government's commitment to achieve 100 per cent energy vehicles by 2040.

$50m fund to fund ground-up community projects

A new $50 million SG Partnerships Fund will be set aside to fund group-up initiatives to benefit the community.

The fund will provided differentiated tiers of funding over different time frames, including grants of up to $1 million for larger, multi-year projects.

This fund replaces the Our Singapore Fund, which was introduced in 2016 and supported over 800 ground-up projects by individuals and organisations.

More sport facilities

The Government will continue to roll out the Sports Facilities Master Plan, so that Singaporeans can more easily access affordable and quality sports facilities.

Sport is a powerful force to bring Singaporeans together, he said.

There will be sports facilities in Farrer Park and Tengah will be opened, as well as revamped sport centres in Hougang and Queenstown.

The new Punggol Regional Sports Centre, originally scheduled to be ready by 2023, will have a 5,000-seater football stadium, swimming complex with five pools, an indoor sports hall with 20 badminton courts and a team sports hall with three basketball courts.

The Dual-Use Scheme, where schools open their fields and facilities for the public to use during weekends, will be expanded.

ActiveSG currently manages over 200 school sports facilities.

Fiscal position

The Government expects higher revenues for Financial Year 2025, due to better-than-expected economic performance and increase in corporate income tax collections.

In FY2024, corporate income tax contributed 4 per cent of GDP, which was significantly higher than in past years.

Based on latest estimates, the Government expects corporate income tax collections to increase further in FY2025.

There was also higher asset-related revenue collections such as vehicle quota premiums and stamp duty.

The Government expects to end FY2025 with a surplus of $15.1 billion, or 1.9 per cent of GDP.

For FY2026, the Government expects a smaller surplus of $8.5 billion, or 1 per cent of GDP.

For more on Budget 2026, visit our microsite.

chingshijie@asiaone.com