Singapore Budget 2026 Feedback

As Prime Minister Lawrence Wong noted in his New Year message, Singapore delivered stronger-than-expected economic growth in 2025, even as global geopolitical tensions continue to pose challenges to sustained expansion.This improving macroeconomic backdrop has also been reflected in capital markets sentiment, with Singapore’s equity markets showing renewed momentum and a notable pickup in initial public offering activity, signalling a recovery in investor confidence.

In this context, Budget 2026 presents a timely opportunity to reinforce Singapore’s resilience, competitiveness, and inclusiveness as the global economy continues to evolve. The domestic outlook improved notably in 2025, with the Singapore economy growing by 4.8% for the full year, supported by a strong 5.7% expansion in the fourth quarter, based on the Ministry of Trade and Industry’s estimates. Labour market conditions remained firm overall, and improved trade performance supported confidence across multiple sectors towards the end of the year. Against this backdrop, while economic growth in 2026 is expected to moderate from the strong pace seen in 2025 amid external headwinds, Singapore is widely viewed as retaining underlying resilience.

Singapore’s proactive response has been clear. More broadly, as highlighted in recent national policy directions, Singapore remains committed to taking charge of its economic destiny and positioning herself to adapt to evolving global and regional conditions.

The Johor–Singapore Special Economic Zone (SEZ) represents a strategic initiative to deepen regional integration and strengthen cross-border collaboration such as manufacturing, logistics, business services and the digital economy.

AI is permeating across all industries and it is critical for our businesses to be cognizant of this rapid change that is occurring as it impacts all facets of business—whether in terms of hiring, impact on jobs, improving productivity etc.  Continued investments in digitalisation as well as new investments in AI-related activities, workforce upskilling, and sustainability reflect a longer-term strategy to support enterprise transformation and secure durable economic returns.

Within this evolving environment, policy frameworks play an important role in shaping business confidence and long-term investment decisions. Tax policy, in particular, remains a key lever in supporting Singapore’s competitiveness while balancing fiscal sustainability and international obligations. Singapore’s implementation of the OECD Pillar Two Global Minimum Tax framework through the Multinational Enterprise (Minimum Tax) Act and Regulations 2024 represents a significant structural shift, placing greater emphasis on administrative clarity, operational ease and policy coherence as multinational groups navigate a more complex international tax landscape.

At the same time, the role of tax and non-tax incentives continues to evolve. As the global minimum tax reshapes the effectiveness of traditional tax-based incentives, greater emphasis has been placed internationally on incentive frameworks that are transparent and aligned with substantive economic activity. Singapore’s approach reflects this broader shift, with a focus on ensuring that incentive regimes remain compatible with international standards while continuing to support genuine investment, innovation, and capability development.

This feedback report reflects perspectives gathered from businesses and stakeholders across industries, including the need to continue responding to structural cost pressures. Measures that promote automation, innovation, and intellectual property development remain relevant in enabling firms to adapt and compete effectively, alongside continued investment in digital readiness and cybersecurity as the economy becomes more digitalised.

Singapore’s financial sector also plays a central role in supporting enterprise transformation and economic resilience. Clear and consistent policy frameworks that support innovation and the deployment of capital into substantive economic activities can reinforce Singapore’s position as a trusted and innovative hub. In addition, policies affecting individuals and households remain important in sustaining workforce resilience and long-term growth. A coherent and coordinated approach across personal taxation, workforce development and talent policies continue to be relevant in supporting participation, skills development, and social inclusiveness.

As Singapore navigates this next phase of development, Budget 2026 stands as an important policy platform to anchor near-term stability while aligning fiscal policy with longer-term strategic priorities. This feedback report is submitted in that spirit, with the aim of supporting inclusive growth, fostering business confidence and national resilience for years to come.