Deloitte Singapore’s response to the Singapore Budget 2026: “Securing Our Future Together in a Changed World”

SINGAPORE, 12 February 2026 – Deloitte Singapore’s subject matter experts share their reactions and comments in response to the Singapore Budget 2026 announced today.

Overview of Singapore Budget 2026

Mr Rohan SOLAPURKAR, Tax & Legal Leader (税务与法务领导合伙人), Deloitte Singapore (德勤新加坡):

Budget 2026 reflects a measured and strategic approach – building on Singapore’s solid economic performance while navigating a more complex external landscape. By prioritising targeted investment in innovation, digitalisation, productivity and workforce readiness – along with continued support to businesses, especially companies seeking to internationalise – the Government aims to position enterprises to remain competitive and resilient amid structural shifts and intensifying global competition.

At the same time, sustained support for workers and cost-of-living relief reaffirms a commitment to shared progress. This Budget also demonstrates disciplined fiscal stewardship, focusing resources where they yield the greatest long-term impact and strengthening Singapore’s economic foundations for sustained prosperity.

Mr Daniel HO (何仁奇), Mergers & Acquisitions Tax Leader (并购税务领导合伙人), Deloitte Singapore and Southeast Asia (德勤新加坡及东南亚):

Budget 2026 strikes a thoughtful balance between supporting businesses through current economic headwinds and strengthening Singapore’s long-term competitiveness. With technological shifts, particularly in artificial intelligence, reshaping markets, this Budget places stronger emphasis on accelerating artificial intelligence (AI) adoption, enterprise digitalisation and workforce readiness, while ensuring that Singapore’s tax and regulatory framework remains stable and predictable for investors.

By providing support for firms looking to expand internationally and adopt AI-driven solutions into their operations, and by aligning fiscal policy with innovation and digital transformation, Budget 2026 reinforces Singapore’s position as a trusted global business hub. Enhanced efforts to equip individuals with AI and digital capabilities will also be critical in translating technological advancement into broad-based productivity gains, and signifies foresight.

Mr LEE Tiong Heng (李忠兴), Global Investment & Innovation Incentives Leader (全球投资与创新激励领导合伙人), Deloitte Southeast Asia (德勤东南亚):

It is no surprise that both corporate and personal tax rates have not been adjusted amidst global uncertainties and volatility.  Singapore continues to maintain a strong fiscal position with a healthy surplus that exceeds projections for FY25. This robust fiscal position has allowed us to maintain our competitive tax rates while sustaining long-term stability.

Building AI capabilities in the professional services sector

Mr Shariq BARMAKY, Country Managing Partner (全国主管合伙人), Deloitte Singapore (德勤新加坡):

AI has already begun to reshape the work of accountancy professionals. At Deloitte, we have been investing early and deliberately in AI—both in technology and in upskilling our people—so that we can focus on delivering higher‑value audit and advisory work anchored in judgement and human insights.

The government’s support in building practical AI capabilities across the professional services sector is a strategic move that will further strengthen Singapore’s position as a leading global hub for professional services. This will enable us to continue fostering a vibrant ecosystem for innovation and talent development, positioning Singapore to serve Asia and the world.

Corporate Income Tax rebate

Ms CHAI Sook Peng (蔡淑萍), Real Estate Sector Tax Leader (房地产业税务领导合伙人), Deloitte Singapore (德勤新加坡):

The Prime Minister has announced that the Government will continue to provide a Corporate Income Tax rebate for YA 2026. The rebate will be granted at 40% of tax payable, capped at S$30,000 per company, which is slightly lower than last year. With this move, the government is scaling back broad-based support and shifting towards more targeted measures, while maintaining fiscal prudence and long-term budget sustainability. This also provides short-term relief to some businesses, especially for those facing cost pressures.

Helping businesses internationalise

Mr CHAN Wenjie (陈文杰), Business Tax Partner (企业税务合伙人), Deloitte Singapore (德勤新加坡):

The Double Tax Deduction for Internationalisation (DTDi) Scheme is a tax incentive in Singapore that helps companies expand overseas, by giving them an automatic 200% tax deduction on up to S$150,000 of eligible business expenses related to certain internationalisation activities. The announcement by Prime Minister Lawrence Wong to increase the scope of eligible activities and the expenditure cap from S$150,000 to S$400,000 sends a strong signal that Singapore remains committed to supporting companies in their internationalisation journey.

Mr WONG Meng Yew (王明耀), Global Trade Advisory Leader (球贸易咨询领导合伙人), Deloitte Singapore and Southeast Asia (德勤新加坡及东南亚):

With an emphasis for Singapore to enhance and build new trade relations with other countries, the enhancements to the Market Readiness Assistance (MRA) grant to both increase the support level, up to 70 per cent for SMEs, as well as the expansion to allow deeper activities in existing markets, is aligned with the objective of this move. This would be helpful for companies looking for support to diversify their customer base, especially in the current trade and geopolitical environment.

Mr Larry LOW (刘俊彬), Government & Public Services Industry Tax Leader (政府及公共服务行业税务领导合伙人), Deloitte Singapore (德勤新加坡):

The Prime Minister's announcement to allow more qualifying activities under the DTDi scheme to be eligible for automatic tax deduction claims undoubtedly lessens the procedural effort for Singapore businesses. The increased tax deduction cap from S$150,000 to S$400,000 should encourage more companies to expand overseas. This aligns with Singapore’s vision to help companies and businesses scale up, internationalise and move forward with confidence in an increasingly uncertain world.

Mr YAP Hsien Yew (叶贤佑), Business Tax Partner (企业税务合伙人), Deloitte Singapore (德勤新加坡):

What’s striking about Budget 2026 is that it’s not just offering more support, but asking companies to think bigger. With enhanced internationalisation grant support of up to 70% of eligible costs for SMEs from 1 Apr 2026, the DTDi automatic-claims cap raised to S$400,000 from YA 2027, and enterprise financing allowing firms to tap facilities up to S$50 million per borrower group, the Government is clearly signalling that scale matters. This is a Budget that changes the risk calculus for firms hesitating at the edge of regional expansion.

Mr LEE Tiong Heng (李忠兴), Global Investment & Innovation Incentives Leader (全球投资与创新激励领导合伙人), Deloitte Southeast Asia (德勤东南亚):

The enhancement of the double deduction scheme for internationalisation from S$150,000 to S$400,000 per year of assessment without prior approval, in addition to the expansion of qualifying activities, is a significant step in helping local companies looking to venture overseas. More often than not, many local companies miss the full benefits as businesses move too fast and they fail to obtain approval before their projects begin.

Enhancement of the Enterprise Innovation Scheme

Ms Yvaine GAN (颜心怡), Global Investment & Innovation Incentives Leader (全球投资与创新激励领导合伙人), Deloitte Singapore (德勤新加坡):

Singapore is making a clear statement: AI adoption is no longer optional – it is a strategic necessity. The expansion of the Enterprise Innovation Scheme (EIS) to include AI related expenditures as a qualifying activity for YA 2027 and 2028, with up to 400% tax deductions (capped at S$50,000 per YA), materially lowers the cost of experimenting, building and deploying AI not just for large enterprises, but crucially, for SMEs as well.

At the same time, the Productivity Solutions Grant (PSG) is being broadened to support a wider range of digital and AI enabled solutions, helping companies work smarter, automate faster and stay competitive in a tight labour market.

What’s equally important is the ecosystem play. The planned expansion of the AI park at one-north signals Singapore’s intent to go beyond incentives by clustering AI practitioners, researchers and innovators in one place to accelerate collaboration and commercialisation.

Taken together, these announcements are not just about funding or tax relief. They are about lowering barriers to AI adoption, strengthening real economic substance, and positioning Singapore as a serious place to build, test and scale AI driven businesses. For business leaders, the opportunity now is execution, and ensuring early alignment between strategy, technology and tax.

Mr CHAN Wenjie (陈文杰), Business Tax Partner (企业税务合伙人), Deloitte Singapore (德勤新加坡):

Announced in Budget 2023, the Enterprise Innovation Scheme (EIS) is designed to encourage businesses to invest in innovation and capability development, offering up to 400% tax deductions or allowances (and, upon election, a cash conversion option) across six qualifying categories such as R&D, IP, training and approved innovation projects.

The expansion to include qualifying AI activities for YA 2027 and 2028 reflects a clear policy push to anchor innovation around next-generation capabilities, while keeping support focused with a lower S$50,000 annual cap. This effectively translates to about 68 cents of tax savings for every dollar spent, assuming a standard 17 per cent corporate tax rate.

Research, Innovation and Enterprise 2030 Plan

Ms Yvaine GAN (颜心怡), Global Investment & Innovation Incentives Leader (全球投资与创新激励领导合伙人), Deloitte Singapore (德勤新加坡):

Singapore’s strategy is clear: leadership, not just participation, in the industries that matter most.

In Budget 2026, PM Lawrence Wong underscored Singapore’s intent to anchor critical segments of the global value chain in Singapore, focusing on industries with high knowledge content and strong spillover effects. Singapore's ambition goes beyond just hosting activity—it’s about shaping how industries evolve and where value is created.

Backing this strategy is the S$37 billion Research, Innovation and Enterprise (RIE) 2030 investment, which signals consistency, credibility and confidence in research and innovation as engines of growth.

For business leaders, the message is simple: Singapore is doubling down on deep capabilities, long term bets and value creation at the frontier—and inviting companies to build the future together.

Top-up to Financial Sector Development Fund

Ms TAY Hwee Ling (郑惠玲), Capital Markets Services Leader, Deloitte Southeast Asia (德勤东南亚资本市场服务领导合伙人):

The measures introduced by the Monetary Authority of Singapore — including the deployment of EQDP funds — are already generating positive momentum in the capital markets ecosystem. This is reflected in the improved quality of IPO candidates and generally resilient post-listing performance observed since the measures were implemented in 2025.

This has, in turn, strengthened confidence among both investors and prospective issuers evaluating Singapore as a listing venue. Funds deployed into the market are expected to create a natural “churn effect”, catalysing follow-on liquidity, price discovery, and secondary fund flows over time.

The additional S$1.5 billion top-up therefore serves as a further boost to market confidence, reinforcing market depth and signalling continued policy commitment to strengthening Singapore’s equities ecosystem.

Mr Klenn YEO (杨毅玮), Deloitte Private Tax Partner (德勤民营企业与私人客户服务税务合伙人), Deloitte Singapore (德勤新加坡):

We welcome further efforts to strengthen Singapore's equities market. With the announcement of a S$1.5 billion top-up to the S$4 billion allocated last year from the MAS's Financial Sector Development Fund to turbo-charge liquidity in Singapore's equities market, in addition to the streamlining of listing rules, we expect an increase in privately-held high-growth companies in Singapore and the surrounding region to consider Singapore as their listing destination of choice in the coming years.

EDB’s expanded mandate

Ms Yvaine GAN (颜心怡), Global Investment & Innovation Incentives Leader (全球投资与创新激励领导合伙人), Deloitte Singapore (德勤新加坡):

With stronger capital markets and increasing international tax pressures, Singapore's tax incentives have necessarily become more targeted and disciplined, rewarding companies that choose to build, list, and scale from Singapore.

The Economic Development Board's expanded mandate to anchor high-growth companies in Singapore is a timely and welcome evolution, signalling Singapore's ambition to create jobs not only by attracting established MNCs, but also by nurturing future industry leaders that can generate quality employment and long-term opportunities for Singaporeans.

Enhancements to Startup SG Equity Scheme

Mr Larry LOW (刘俊彬), Government & Public Services Industry Tax Leader (政府及公共服务行业税务领导合伙人), Deloitte Singapore (德勤新加坡):

We welcome the Government’s decision to set aside S$1 billion to enhance the Startup SG Equity Scheme, as it provides stronger funding support for a wider scope of promising local startups. This should help Singapore's local businesses overcome one of the most challenging phases of the startup journey while expanding and scaling up their operations.

Ms Yvaine GAN (颜心怡), Global Investment & Innovation Incentives Leader (全球投资与创新激励领导合伙人), Deloitte Singapore (德勤新加坡):

The S$1 billion boost for growth-stage tech companies is closely aligned with Singapore’s broader strategy of building an innovation-driven economy and a more robust startup incubation-to-scale ecosystem.

Over the years, Singapore has successfully strengthened early-stage formation through accelerators, research institutions and venture funding, and this latest move addresses the critical next phase of helping promising companies scale, commercialise innovation and expand globally.

By strengthening support across the full lifecycle of startups, from incubation to growth, Singapore is reinforcing its position not just as a launchpad for new ventures, but as a hub where technology companies can anchor substantive activities, develop intellectual property and build long-term regional operations. This reflects a deliberate shift towards ecosystem-based competitiveness, where innovation capabilities and talent density are as important as incentives.

Mr Klenn YEO (杨毅玮), Deloitte Private Tax Partner (德勤民营企业与私人客户服务税务合伙人), Deloitte Singapore (德勤新加坡):

The announcement to enhance the Startup SG Equity scheme should be music to the ears of the startup community. Under the scheme, the Government provides early-stage funding to catalyse and crowd in private funding for promising startups. The S$1 billion enhancement will now expand to cover growth-stage companies.

The startup community could also tap on the experience of successful global founders who have scaled startups into global businesses, and have now relocated to Singapore under EDB's Global Founder Programme announced in April 2025.

Investment incentives

Ms Yvaine GAN (颜心怡), Global Investment & Innovation Incentives Leader (全球投资与创新激励领导合伙人), Deloitte Singapore (德勤新加坡):

Singapore’s boost to its investment promotion arsenal comes at a pivotal time, as competition for investments across the world intensifies. In this new global landscape shaped by evolving tax policies and minimum tax rules, relying solely on Singapore's traditional incentives toolkit will not suffice. These enhancements are both timely and critical, signalling Singapore’s willingness to refresh its economic development strategy and sharpen its incentives toolkit to ensure the city-state stays ahead as a choice investment destination on the global stage.

Ms Yvaine GAN (颜心怡), Global Investment & Innovation Incentives Leader (全球投资与创新激励领导合伙人), Deloitte Singapore (德勤新加坡):

Budget 2026 reinforces Singapore’s pro innovation stance, though with room for refinement. The direction is clear: incentives are becoming more strategic, targeted and outcomes driven, with greater emphasis on commercialisation and economic spillovers.

A key highlight is the expansion of the Enterprise Innovation Scheme to include AI‑related expenditures.  However, given the thrust for high-value investments and innovations in Singapore, enhancements to the Refundable Investment Credit (RIC) would have been very welcome to encourage more strategic investments - especially when other jurisdictions are sharpening their tax credits and cash-based incentives.

For businesses, the takeaway is two-fold. First, innovation linked incentives remain a powerful lever – but only if tax, technology and commercial strategy are aligned early. Second, there is still room for policy evolution, particularly in supporting bigger, bolder investments.

Budget 2026 sets the tone. The next step is execution – and continued refinement.

Extension of the Global Trader Programme

Mr LEE Tiong Heng (李忠兴), Global Investment & Innovation Incentives Leader (全球投资与创新激励领导合伙人), Deloitte Southeast Asia (德勤东南亚):

While it is encouraging to note that Singapore will be extending the Global Trader Programme (GTP) for another 5 years with tax incentive rates of 5%, 10% and 15%, more can be done to ensure that Singapore remains competitive in attracting global trading companies. For example, Hong Kong has newly introduced a global commodities trader programme positioned directly against our GTP, offering an incentive tax rate of 8.25% alongside a lower qualifying requirement.

SkillsFuture Singapore and Workforce Singapore merger

Mr LEE Chew Chiat (李招杰), Government & Public Services Leader (政府及公共服务行业领导合伙人), Deloitte Southeast Asia (德勤东南亚):

This merger is a welcome move that enhances support for workers and reinforces Singapore’s commitment to lifelong learning. While the Ministry of Education (MOE) plays a critical role in developing competencies and curricula, effective workforce transformation also depends on strong industry linkages and a clear understanding of sectoral needs. The joint oversight by MOE and the Ministry of Manpower (MOM) will help ensure closer alignment between skills supply and labour market demand. This creates greater opportunities to match Singaporeans who have acquired new skills with employers’ needs, strengthening the local talent pipeline alongside the calibrated use of foreign professionals.

Quantum technology

Mr Duleesha KULASOORIYA, Innovation Leader (创新主管合伙人), Deloitte Asia Pacific (德勤亚太):  

Budget 2026 signals Singapore’s intent to lead, not just participate, in the next wave of frontier technologies, with quantum emerging as a clear strategic priority. The Government’s continued commitment to research, innovation and enterprise under RIE2030 reflects a long‑term view that capabilities such as quantum computing, communications and security will underpin future competitiveness, resilience and trust in critical digital infrastructure.

Establishment of National AI Council

Mr Richard MACKENDER, Indirect Tax Leader (间接税务领导合伙人), Deloitte Singapore and Asia Pacific (德勤新加坡及亚太):

The Government's approach to AI is optimistic and exciting: taking advantage of the potential in AI whilst seeking to ensure that the benefits are identified and drive good outcomes for Singapore. 

The fact that the Prime Minister will chair the National AI Council shows how seriously Singapore is taking this opportunity. The city-state is moving decisively towards an AI-powered economy. The Government has sent a strong signal that AI is not here to replace professionals such as accountants and legal practitioners, but to empower them to move up the value chain. Through continued investment in AI training and upskilling — including free courses and access to premium AI tools — our workforce will be equipped to take on higher-value roles. AI should be seen as a companion that enhances human expertise as Singapore strengthens its position in a competitive global economy.

Mr Duleesha KULASOORIYA, Innovation Leader (创新主管合伙人), Deloitte Asia Pacific (德勤亚太):

The Government’s emphasis on private‑sector AI adoption highlights the central role companies play in steering the shift towards AI‑augmented work. Trust between employers and employees will be critical to making this transition work. Deloitte’s research shows that the most successful organisations are moving beyond layoffs by managing change more deliberately – redeploying people into new roles, building alumni networks that support future careers, and backing startups founded by current and former employees. When done well, these approaches can turn disruption into a strategic advantage, preserving trust, institutional knowledge and long‑term capability.

Ms LIEW Li Mei (刘丽梅), International Tax Leader (国际税务领导合伙人), Deloitte Singapore (德勤新加坡):

AI was front and centre of Budget 2026 – from establishing a national council and a dedicated AI park to equipping current and future workforce to be AI ready. This shows the importance Singapore places on AI as it continues to ensure it remains relevant and competitive globally and readies itself and its people for the evolving future.

Building AI capabilities

Mr Larry LOW (刘俊彬), Government & Public Services Industry Tax Leader (政府及公共服务行业税务领导合伙人), Deloitte Singapore (德勤新加坡):

The move by the government to provide Singaporeans who take up eligible AI courses with six months' free access to premium AI tools is a strong signal to encourage Singaporeans to upgrade their skills through training in AI and integrate it into their work, with the end goal of increasing productivity.

Mr Daniel HO (何仁奇), Mergers & Acquisitions Tax Leader (并购税务领导合伙人), Deloitte Singapore and Southeast Asia (德勤新加坡及东南亚):

The emphasis on AI in Budget 2026 recognises that business competitiveness is ultimately built on people as much as technology. Supporting workforce upskilling while helping enterprises adopt AI responsibly will empower businesses to adapt, grow, and create meaningful future jobs in a rapidly changing global economy. It is the right time to do this as Singapore remains in a strong fiscal position driven by robust corporate tax and asset tax collections.

Mr Rohan SOLAPURKAR, Tax & Legal Leader (税务与法务领导合伙人), Deloitte Singapore (德勤新加坡):

The 2026 Budget has set a far-sighted approach, laying strong foundations to tide Singapore through global uncertainties. Post SG60, the government's focus on developing capabilities in quantum computing and AI is important in supporting Singapore's continued resilience. The tax deductions and allowances for qualifying AI expenditures are timely for Singapore businesses so that they can adapt to the changing landscape. 

Mr YANG Chi Chih (杨继智), Technology, Media and Telecommunications Industry Leader (科技、传媒和电信行业领导合伙人), Deloitte Southeast Asia (德勤东南亚) :

The Champions of AI programme sends a clear signal that AI adoption in Singapore must move from pilots to scale, anchored in strong governance and ethical use. It will accelerate enterprise transformation while reinforcing Singapore’s ambition to be a trusted global AI leader. As operators of critical national digital infrastructure, Singapore’s telcos are uniquely positioned to deliver sovereign AI services that safeguard sensitive data, strengthen operational resilience, and unlock productivity gains across the economy, in alignment with the government’s objectives.

Increase in security-related expenditure

Ms Michelle KHOO (邱温文), Center for the Edge Leader (领先创新中心主管), Deloitte Southeast Asia (德勤东南亚):

Singapore’s decision to raise security-related expenditure in response to a more complex and contested threat environment is timely and necessary. As Prime Minister Lawrence Wong rightly highlighted, today’s security challenges extend beyond traditional defence and increasingly span cyber, unmanned and digital domains.

In this context, it is important that Singapore’s cybersecurity strategy also explicitly encompasses satellites and space-based systems, particularly as the Government prepares to launch the National Space Agency of Singapore (NSAS) on 1 April 2026. Satellites underpin critical national functions – from communications and navigation to climate monitoring, maritime awareness and disaster response – and should therefore be treated as core national digital infrastructure.

Cost-of-Living support

Ms Sabrina SIA (佘爱玲), Global Employer Services Leader (雇主人力资源全球服务领导合伙人), Deloitte Singapore and Southeast Asia (德勤新加坡及东南亚):

Given that Singapore delivered stronger-than-expected growth of 4.8% last year, Singaporeans were likely hoping to receive more CDC vouchers since cost-of-living pressures remain high, even though inflation has somewhat moderated. It is therefore welcome news that S$500 worth of CDC vouchers will be given to all Singaporean households in January 2027. 

Mr CHAN Wenjie (陈文杰), Business Tax Partner (企业税务合伙人), Deloitte Singapore (德勤新加坡):

The additional S$500 in CDC vouchers for some 1.4 million households, together with enhanced U-Save rebates of up to S$570 this financial year, reflects the government’s continued commitment to cushioning cost-of-living pressures.

The CDC vouchers in particular have proven to be a very popular and tangible form of support, benefiting both households and heartland businesses. Coupled with the additional U-Save rebates, these measures will go some way in easing the impact of higher utilities bills arising from the carbon tax increase, while allowing Singapore to stay the course on its transition to net zero.

Mr Larry LOW (刘俊彬), Government & Public Services Industry Tax Leader (政府及公共服务行业税务领导合伙人), Deloitte Singapore (德勤新加坡):

As widely anticipated and hoped, the Government has once again announced another tranche of CDC vouchers amounting to S$500 per household so as to help households and individuals cope with the increased cost of living in Singapore.  Whilst lower than 2025 – understandably as last year marked SG60 – this is certainly welcome as every bit counts. This move will also benefit our neighbourhood shops and hawkers through increased spending at these places.

Targeted support

Ms Sabrina SIA (佘爱玲), Global Employer Services Leader (雇主人力资源全球服务领导合伙人), Deloitte Singapore and Southeast Asia (德勤新加坡及东南亚):

In his 2026 New Year Message, PM Lawrence Wong highlighted the need to reinforce our social compact, particularly by supporting lower-income families and their children, as well as persons with disabilities and their caregivers.

As expected, enhanced measures have been announced in the 2026 Budget to provide more targeted support for these two groups. More importantly, a Disability Taskforce has been convened to undertake a holistic review to provide recommendations on how to better support people with disabilities not just financially, so as to ensure that no one gets left behind.

Enhancements to ComLink+

Mr LEE Chew Chiat (李招杰), Government & Public Services Leader (政府及公共服务行业领导合伙人), Deloitte Southeast Asia (德勤东南亚):

ComLink+ is an effective way to support families holistically. It enables parents to secure employment, children to stay engaged in school, and households to strengthen their financial management skills. With the announced enhancements, it can become an even more effective pathway towards social mobility for lower-income families over time.

Life-cycle investment products

Mr Rohan SOLAPURKAR, Tax & Legal Leader (税务与法务领导合伙人), Deloitte Singapore (德勤新加坡):

The announcement of a government initiative to shape and develop a voluntary participation scheme under the CPF Board for a life cycle investment product with low fees is welcome news for CPF members with a longer runway to retirement.

BEPS 2.0

Ms LIEW Li Mei (刘丽梅), International Tax Leader (国际税务领导合伙人), Deloitte Singapore (德勤新加坡):

Amidst an uncertain global environment, Prime Minister Wong's announcement that Singapore will move forward with BEPS Pillar Two implementation will provide certainty to in-scope MNE Groups as they prepare for upcoming compliance obligations in Singapore.

Mr CHAN Wenjie (陈文杰), Business Tax Partner (企业税务合伙人), Deloitte Singapore (德勤新加坡):

Globally, we continue to see developments under Pillar Two, including the proposed Side-by-Side package, reflecting an evolving implementation landscape across jurisdictions. Against this backdrop, Prime Minister Wong has affirmed that Singapore will stay the course in its commitment to the global minimum tax framework. Tax revenues for Singapore are expected to increase from 2027 as the rules take effect.

That said, tax competition has not disappeared. Many countries are introducing targeted and Pillar Two-compliant incentives to retain and attract investment. Going forward, competitiveness will increasingly hinge on policy design, certainty and broader economic fundamentals.

Immigration

Ms Christina KARL, Immigration Leader (出入境签证服务领导合伙人), Deloitte Singapore and Global (德勤新加坡及全球): 

Today’s Budget speech, with the announced increases to the EP and S Pass minimum qualifying salaries (taking effect in January 2027 for initial applications and January 2028 for renewals), is a continuation of Singapore’s broader effort to upgrade the quality of both local and foreign manpower. It reinforces the stance that foreign professionals must come in at salary levels that reflect genuine expertise and productivity, and that they should complement, not undercut, the local workforce.

In the same vein, the higher Local Qualifying Salary (LQS) threshold, which affects how many locals can be counted towards a company’s S Pass quota, further tightens access to lower-cost foreign manpower at the S Pass level. By requiring employers to pay locals at or above the revised LQS before they can avail of the S Pass quota, the Government is nudging firms to invest more meaningfully in their Singaporean core, instead of relying on "token" local hires to support a larger pool of foreign S Pass holders.

Taken together, the EP and S Pass qualifying salary increases, along with the LQS adjustment, convey a consistent policy of complementarity between foreign and local manpower. This ensures that only higher-quality and appropriately paid foreign manpower is brought in while safeguarding fair opportunities and wage progression for Singaporeans. This measured approach is consistent with previous Budgets’ emphasis on skills, productivity and a strong local workforce, while keeping Singapore open to global talent in areas where deep experience and specialised capabilities are needed to drive innovation and competitiveness.

Strengthening volunteerism and corporate giving

Mr CHAN Wenjie (陈文杰), Business Tax Partner (企业税务合伙人), Deloitte Singapore (德勤新加坡):

Extending both the 250% tax deduction for donations and the Corporate Volunteer Scheme (including employee volunteerism and secondments to IPCs) through 2029 sends a strong signal that corporate stewardship remains a priority. The Corporate Volunteer Scheme continues to recognise not just financial support, but the value of time, skills and sustained engagement with the social sector, helping firms integrate community impact into their longer-term environmental, social, and governance (ESG) strategies. Taken together, these measures reinforce a culture of giving and shared purpose that benefits charities, businesses and society alike.

Mr Larry LOW (刘俊彬), Government & Public Services Industry Tax Leader (政府及公共服务行业税务领导合伙人), Deloitte Singapore (德勤新加坡):

The extension of tax deductions for qualifying donations and Corporate Volunteer Scheme till end 2029 is heartening. It encourages the spirit of philanthropy and for Singapore corporates to continue to serve and support the community, both in monetary terms and through the physical acts of giving and contributing.

Sustainability

Ms Yvaine GAN (颜心怡), Global Investment & Innovation Incentives Leader (全球投资与创新激励领导合伙人), Deloitte Singapore (德勤新加坡):

Singapore’s sustainability push is moving decisively from aspiration to execution. Measures such as mandating sustainable aviation fuel, advancing low‑carbon ammonia bunkering for shipping, and diversifying the energy mix reflect Singapore's unique and pragmatic approach to decarbonisation – one that balances environmental ambition with competitiveness, energy security and long‑term economic resilience.

The government can further complement this by using fiscal incentives that go beyond mandates, including greater flexibility under schemes like the Refundable Investment Credit and the Energy Efficiency Grant, to support broader sustainability outcomes.

Ms Yvaine GAN (颜心怡), Global Investment & Innovation Incentives Leader (全球投资与创新激励领导合伙人), Deloitte Singapore (德勤新加坡):

Singapore has reached its 2030 solar target of 2 gigawatt-peak (GWp) ahead of schedule and has raised its ambition to 3 GWp by 2030 — a notable achievement for a land scarce, resource-constrained country.

To date, Singapore’s approach has been largely market driven, maximising deployment across all viable surfaces while investing in technology and system efficiency. In contrast, countries and regions like the US, Europe and Australia have accelerated solar adoption through tax credits, feed-in tariffs and rooftop subsidies that shorten payback periods. As Singapore enters its next phase of its green transition journey, selectively introducing targeted tax incentives, expanding the Refundable Investment Credit to support solar adoption and providing financing support could help accelerate adoption and sustain its leadership in the energy transition.

Mr Brent VASCONCELLOS, Energy, Resources & Industrials Industry Leader (能源、资源及工业行业领导合伙人), Deloitte Southeast Asia (德勤东南亚):

The Budget strikes a careful balance between safeguarding Singapore's energy security, particularly in light of current global geopolitical uncertainties, and ensuring that households and businesses continue to benefit from stable energy costs.

At the same time, the Budget demonstrates a clear commitment by Singapore to play a role in the global energy transition by accelerating its shift toward lower carbon energy sources. It is particularly encouraging to see positive support measures aimed at accelerating the adoption of lower-carbon fuels in the aviation and maritime sectors, as these are sectors vital to Singapore's economy and global connectivity.

The Government's continued investment into solar energy and broader efforts to diversify Singapore's energy source mix is also welcome. This approach should hopefully attract new investment from industry players and lay the groundwork for Singapore to become a leader in the low carbon energy space, by providing a platform from which companies can deploy cleaner energy technology and innovation solutions across the region.

Carbon tax

Mr WONG Meng Yew (王明耀), Sustainability and Climate Tax Leader (可持续发展与气候变化税务领导合伙人), Deloitte Southeast Asia (德勤东南亚):

While Budget 2026 did not provide a concrete number for the carbon tax to be implemented in 2028, the Government has acknowledged concerns that the trajectory of an increase towards a S$50 to S$80 per tonne range by 2030 may have a dampening effect on Singapore's competitiveness, considering that we already have the highest carbon tax rate in Asia.

It is thus a welcome move that there are plans in place to review this range towards the lower end in 2028, to allow companies to ease their tax expenditure while continuing their decarbonisation efforts.

Sports Facilities Master Plan

Mr James WALTON, Sports Business Group Leader (体育业务领导合伙人), Deloitte Asia Pacific (德勤亚太):

The ongoing roll-out of the Sports Facilities Master Plan is a highly welcome investment by the government – one that promotes healthy living and active ageing across the population. Beyond providing accessible spaces for residents to exercise and participate in community activities, these enhanced facilities also expand training grounds for elite athletes and strengthen Singapore’s capacity to host both community-level, national and even international competitions.

Together with existing infrastructure projects such as Kallang Alive, the NS Square, and stadium developments across the island, these investments continue to deepen our sporting culture as Singapore looks ahead to the SEA Games in 2029 and advances its broader 2030 – and eventually 2040 – Vision for sport.