SINGAPORE: Businesses looking to expand overseas and manage cost pressures, amid other business needs, will receive more government aid in doing so.
Here are the support measures for Singapore businesses that Prime Minister Lawrence Wong announced in his Budget speech on Thursday (Feb 12):
1. Corporate income tax rebates
A corporate income tax (CIT) rebate of 40 per cent will be given for the year of assessment 2026.
Companies that are active and have employed at least one local employee in calendar year 2025 will receive a minimum benefit of S$1,500 in the form of a CIT rebate cash grant.
The total maximum benefits that a company can receive is $30,000.
2. Enhanced support schemes for internationalisation
The Market Readiness Assistance (MRA) grant helps enterprises expand overseas by defraying the costs of overseas market promotion, business development and market set-up.
The MRA grant is available to local small and medium-sized enterprises (SMEs) at a support level of up to 50 per cent of eligible costs, capped at $100,000 per company per new market.
From April 1, 2026, onwards, the support level received by SMEs will increase to up to 70 per cent of eligible costs – the higher support level is applicable until March 31, 2029. SMEs will continue to receive grant support of up to $100,000 per company per new market.
From April 1, 2026, to March 31, 2029, grant support levels for other internationalisation schemes will also be enhanced.
Local SMEs will receive support of up to 70 per cent of eligible costs and local non-SMEs will receive support of up to 50 per cent of eligible costs. This will apply to the following grants –the Business Adaptation Grant until Oct 6, 2027, and Global Innovation Alliance schemes.
The Business Adaptation Grant helps local enterprises impacted by tariffs to adapt their business operations and strengthen supply chain resilience through advisory and reconfiguration support. The Global Innovation Alliance schemes support Singapore-based start-ups in expanding overseas.
3. S$1 billion boost for start-ups
Under the Startup SG Equity scheme, the Government provides initial capital to catalyse and crowd in private funding for promising start-ups.
While the scheme has in the past focused mainly on early-stage funding, it will now be expanded to cover growth-stage companies, too, with $1 billion to be set aside to enhance it.
The $1 billion is set aside as part of the Research, Innovation and Enterprise 2030 plan.
4. New programme to support firms in using AI to transform
A new Champions of AI programme is being launched to support firms in using artificial intelligence to comprehensively transform their businesses.
The support will be tailored to each company and will include enterprise transformation and workforce training.
5. Enhanced tax deductions and allowances for firms’ AI expenditures
The Enterprise Innovation Scheme provides businesses with 400 per cent tax deductions on qualifying expenditures in activities such as research and development, innovation and capability development.
The scheme will be expanded to include AI expenditures as a qualifying activity, for the years of assessment 2027 and 2028, capped at $50,000 per year of assessment.
The AI measures are part of a new set of national AI missions announced on Feb 12 to drive AI-led transformation in key sectors of Singapore’s economy. A new National AI Council was also established to provide strategic direction and drive Singapore’s AI agenda. The council will be chaired by PM Wong. - The Straits Times/ANN
