The Prime Minister and Finance Minister, Mr Lawrence Wong just unveiled the Singapore Budget 2026. Here are our reactions and comments on the Budget proposals.
Whilst much of the spotlight is on AI, it is reassuring that the Budget continues to strengthen Singapore’s economic fundamentals. The extension of key incentives such as the Finance & Treasury Centre incentive, and the enhancement of the Global Trader Programme to include Environmental Attribute Certificates, reflect a clear commitment to sustaining activities that drive meaningful economic value.
Evelyn Lim, Executive Director
This Budget 2026 reinforces the view that AI and technology are the nation’s priorities. Singapore must accelerate its technological transformation to stay resilient in a fast-changing environment. The emphasis on AI adoption, innovation, and workforce capability building reflects Singapore’s intent to ensure readiness in an AI-driven economy amidst rising global uncertainty.
Loke Yew Ken, Executive Director
As Budget 2026 emphasises AI and digital transformation, the ongoing implementation of GST InvoiceNow quietly reinforces this direction. Standardised e-invoicing builds the digital backbone that allows businesses to move from manual compliance to automation — and eventually to AI-enabled insights.
Eu Chin Sien, Executive Director
Budget 2026 shows a real commitment to preparing us for the future. From enterprise support to workforce development, the focus is on enabling smarter, more productive ways of working — helping both businesses and professionals thrive in the years ahead.
Eu Chin Sien, Executive Director
Budget 2026 demonstrates a strong commitment to equipping businesses and professionals to leverage AI in the evolving economy. For the tax and accounting profession, the emphasis on technology adoption and upskilling is both relevant and forward-looking, empowering us to shift from routine compliance to delivering higher-value strategic insights in a more complex landscape.
Jackson Cai, Executive Director
As we embrace the benefits of AI, it is encouraging to see the Government putting in place clear guidelines and accountability measures to ensure a structured and responsible approach to its strategic adoption and development.
Jackson Cai, Executive Director
What stands out in Budget 2026 is the integration of economic, social, and infrastructure policy. Singapore is not choosing between growth and resilience—it's pursuing both simultaneously. For businesses and investors, this sends a clear message: Singapore remains committed to being a stable, forward-looking hub that anticipates rather than reacts to global shifts. Our role as tax advisors is to help clients capture the full value of this strategic vision.
Elis Tan, Executive Director
The workforce measures announced are particularly timely. As AI and automation reshape business models, the Budget's focus on job security and skills transition is essential. This Budget has deepened that toolkit, which will be crucial for both competitiveness and social cohesion.
Elis Tan, Executive Director
Budget 2026 marks a pivotal moment in Singapore's economic strategy. As we navigate heightened global uncertainties and evolving tax landscapes, the measures announced today demonstrate the government's commitment to building structural resilience—not just reactive support. For businesses, particularly those in our regional hub, this Budget provides the strategic framework needed to adapt and thrive amid trade tensions and supply chain reconfigurations.
Elis Tan, Executive Director
Budget 2026 shows Singapore isn't just adapting to BEPS—it's redefining competitiveness. With tools like the Refundable Investment Credit structured as Qualified Refundable Tax Credits, we're attracting onshoring through substantive economic incentives that work within Pillar Two rules. The race to the bottom on rates is over; the race to the top on value creation has begun, and Singapore is positioned to lead.
Elis Tan, Executive Director
The Prime Minister’s call to reject 'anxiety' in favor of 'disciplined investment' resonates deeply with us. At BDO, we are already using AI to reshape our professional services, ensuring that our work is safer, faster, and more insightful. Being named as a lead industry for AI transformation is a testament to the vital role accountancy plays; we look forward to building on our current AI foundations to further strengthen Singapore’s financial and legal core.
Koh Yun Qi, Executive Director
Budget 2026 sets an ambitious trajectory for Singapore to lead in a 'changed world' by prioritising economic advancement and resilience amidst global volatility. A key pillar of this strategy is the critical balance between innovation and responsibility; by setting clear rules for AI safety, Singapore is building the digital age’s most valuable commodity: Trust. Defining our own standards ensures that technology remains a servant to our society—a strategic advantage that strengthens our national core rather than a source of paralysis or risk.
Koh Yun Qi, Executive Director
In a landscape of shifting global tax standards, Budget 2026 demonstrates that Singapore is staying ahead of the curve. By proactively aligning with BEPS initiatives, the Government is ensuring our fiscal framework remains both robust and competitive. This forward-looking approach reinforces Singapore’s status as a stable, high-trust jurisdiction, providing the certainty and protection that global investors seek in a changed world.
Koh Yun Qi, Executive Director
In an era defined by rising geopolitical uncertainty and the threat of global slowdown, Singapore has chosen not retreat, but reinvention. By boldly embedding AI at the heart of its economic strategy, the nation is strengthening competitiveness, accelerating innovation, and securing long-term growth. Through a proactive and comprehensive push to build an AI-ready ecosystem — prioritising job redesign, upskilling, and rapid business integration — Singapore is empowering its people and enterprises to not only withstand disruption but lead in the future economy.
Kylie Luo, Executive Director
The expansion of the Equity Market Development Programme, supported by a $1.5 billion top-up to the Financial Sector Development Fund, marks a decisive step in strengthening Singapore’s capital markets. More than a policy enhancement, it reflects our commitment to future-proofing the economy, deepening the fund management industry, and broadening investor participation in Singapore equities.
Kylie Luo, Executive Director
Prime Minister and Finance Minister Lawrence Wong has announced a 40% corporate income tax rebate for year of assessment 2026, helping companies manage rising rental and labour costs. Each active company that employed at least one local employee in 2025 will receive a minimum benefit of $1,500, with the total benefit for each company capped at $30,000.
The enhancement of the Progressive Wage Credit Scheme, with co-funding raised from 20% to 30%, will further ease labour cost pressures while uplifting lower-income workers.
On the household front, $500 in CDC vouchers and up to $570 in utilities rebates will provide meaningful relief amid cost-of-living pressures.
These targeted measures reflect a balanced and thoughtful approach — supporting businesses, strengthening wages, helping families navigate the road ahead and leaving no one behind.
Kylie Luo, Executive Director
SMEs (small and medium-sized enterprises) are clearly among the key beneficiaries of Singapore’s Budget 2026. The enhanced grant support rates (of up to 70% for SMEs), broader scope for overseas market assistance, improved tax deductions for international activities, and greater financing flexibility collectively provide strong encouragement for Singapore SMEs to expand and strengthen their global presence more effectively.
Wong Sook Ling, Executive Director
Budget 2026 is spot on in focusing on the impact AI and digital transformation, supporting and positioning Singapore to thrive in a rapidly changing technological world. At the same time, it continues to ease the burden of rising costs pressures on households through targeted support and ensures that our workers are well taken care of as we move confidently into a more technology-driven future.
Wu Soo Mee, Executive Director
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