Budget 2026 comes at a time of global unease. The stability and economic cooperation that underpins Singapore’s success are no longer something we can take for granted.
“Economic flows are becoming more selective (and) partnerships more strategic,” said Prime Minister Lawrence Wong.
To secure our future, Singapore will have to refresh its economic strategy and strengthen support for its people. And that is what Budget 2026 seeks to achieve.
Developing new industries
“Growth must translate into good jobs and rising incomes for Singaporeans,” said PM Wong.
To do so, Singapore will focus on strengthening key industries in key growth clusters.
Under the Research, Innovation and Enterprise 2030 (RIE2030) plan, Singapore will invest $37bn over the next five years in sectors such as AI, quantum technology and biomedical sciences.
In addition, the government will provide a $1bn boost to the Startup SG Equity scheme to support promising firms at the growth stage.
“Nurturing home-grown startups…will strengthen our enterprise ecosystem. It will create more opportunities for Singaporeans to secure good jobs and grow their careers,” added PM Wong.
Helping local businesses grow
Turning inwards is not an option for Singapore’s small domestic market. As such, the government will step in to help companies access new overseas markets.
“Doing business overseas is not easy. That is why we will do more to support Singapore companies as they venture abroad,” said PM Wong.
The Market Readiness Assistance (MRA) Grant will provide small and medium enterprises (SMEs) with up to 70% funding for eligible costs.
Building an AI-literate workforce
To ensure that Singaporeans have the skills to secure good jobs, the government will provide workers with better support to acquire new skills and use AI as a tool for greater productivity.
Singaporeans who take up selected AI training courses will now have six months of free access to premium AI tools to practice what they have learned.
For young Singaporeans, Institutes of Higher Learning (IHLs) will be strengthening AI literacy in the classroom to equip them with the skills to use AI wisely.
The potential disruption by AI to the job market is real. But PM Wong’s promise to Singaporeans is equally reassuring.
“Every Singaporean who is willing to adapt and learn will continue to secure a good job and make a good living here in Singapore.”
Supporting all Singaporeans with the cost-of-living relief
All Singaporean households will receive $500 in CDC vouchers in January 2027, announced PM Wong.
In addition, Singaporeans adults earning up to $100,000 will receive a Cost-of-Living Special Payment of between $200 and $400 in cash.
Eligible HDB households will also receive up to $570 of U-Save rebates to help with utility expenses.
“The Government will continue to do whatever is necessary to help Singaporeans manage cost pressures — for as long as it is needed,” said PM Wong.
Reassuring families and investing in our children
The cost of raising children is a worry for many families. To address this, the government has announced $500 of Child LifeSG Credits for each Singaporean child aged 12 and below.
Preschool and student care services will be kept affordable.
Beginning next year, the household income threshold for receiving means-tested preschool subsidies will increase from $12,000 to $15,000. The move is expected to benefit 60,000 families.
The monthly household income threshold for Student Care Fee Assistance will also be raised to $6,500 (up from $6,000), allowing more families to qualify.
Uplifting lower-income workers and families
ComLink+ supports lower-income families with children. All ComLink+ families will receive a new $500 quarterly payout.
They will also receive additional payouts when they make progress in maintaining stable employment and good preschool attendance for their children.
With these enhancements, a family with two children can receive around $10,000 per year in cash and CPF top-ups while their children are in preschool.
“We will continue to help lower-income families, especially those with young children, move towards greater stability, self-reliance, and social mobility,” said PM Wong.
Addressing support for lower-wage workers, PM Wong announced that the government will raise the Local Qualifying Salary (LQS) for full-time employees from $1,600 to $1,800.
The hourly allowance under the Workfare Skills Support (WSS) scheme will also be increased to encourage more workers to upgrade their skills.
Boosting retirement adequacy for seniors
To strengthen retirement support, Singaporeans aged 50 and above will receive a CPF top-up of up to $1,500 if their CPF savings fall below the Basic Retirement Sum.
From 2027, the CPF contribution rate will increase by 1-1.5% for workers aged 55 and above.
“This will help older workers build up their retirement savings in their later working years,” said PM Wong.
There will also be more investment options for CPF members who wish to grow their savings.
While still in the early stages, the government is looking to introduce a Lifetime Retirement Investment Scheme. Under the voluntary scheme, members take on riskier investments when they are younger, which are then automatically rebalanced towards safer assets as they approach retirement.
Singapore’s fiscal position
Singapore will end the 2025 fiscal year with a $15.1bn surplus. This “firm fiscal footing” is what differentiates Singapore from many other countries, said PM Wong.
“Our sound public finances give us the ability to act decisively and to invest where it matters most…Together we will secure a stronger, fairer, and brighter future for all,” said PM Wong.
By investing in our people, society and industries, Budget 2026 builds a firm foundation that will enable Singaporeans to navigate a changed world with confidence.
