Singapore Budget 2026: The Ultimate Growth Guide for SMEs

Singapore Budget 2026 focuses on helping Singapore small business owners grow, innovate, and stay resilient. With a focus on international expansion, AI adoption, and sustainability, SMEs now have access to grants, tax incentives, and financing schemes to accelerate growth in 2026.

This guide breaks down key opportunities and practical steps to leverage Budget 2026, while keeping your accounting services in Singapore aligned for compliance and optimisation.

Quick Summary: Top Budget 2026 Opportunities

1. Expanding Overseas: Practical Support for SMEs

Budget 2026 makes international expansion achievable for SMEs:

• Market Readiness Assistance (MRA) Grant: Claim up to 70% of eligible costs for entering new markets or strengthening existing ones until 31 March 2029.
• Market Deepening: From July 2026 onwards, SMEs can access MRA support to grow further in existing overseas markets, not only new markets.
• Double Tax Deduction for Internationalisation (DTDi): From YA 2027, SMEs can claim up to S$400,000 automatically for qualifying internationalisation expenses.
• Enterprise Financing Scheme (EFS): Borrower group limit of S$50 million, offering flexibility for working capital and overseas scaling.

2. Transforming Digitally: AI and Productivity

Digitalisation with AI is a priority for SMEs in 2026:

• Productivity Solutions Grant (PSG): Funding supports AI-enabled tools to automate routine tasks like data entry, inventory management, and customer service.
• Champions of AI Programme: Supports SMEs seeking full AI integration to enhance productivity and operational decision-making.

3. Pursuing Sustainability: Low-Carbon Growth

• Energy Efficiency Grant (EEG): Invest in energy-saving technologies to reduce costs. Extended until 31 March 2027.
• EFS – Green: Financing for environmentally friendly solutions, available until 31 March 2031.

4. Tax Strategy: Maximising Rebates & Deductions

• 40% Corporate Income Tax (CIT) Rebate: Capped at S$30,000 for YA 2026.
• Cash Support for Non-Profitable SMEs: Minimum S$1,500 grant automatically for companies employing at least one local worker in 2025.