Helmi Talib
Managing Partner, Kreston Helmi Talib, Singapore
Singapore budget boosts liquidity with new investment and tax incentives
March 11, 2026
The Singapore budget introduces new measures to boost liquidity, including expanded startup funding, investment support and tax incentives designed to strengthen the country’s capital markets.
Startup funding strengthened through StartUp SG Equity
Singapore is allocating S$1bn to strengthen StartUp SG Equity, a government co-investment programme, in a bid to foster innovative, locally grown technology startups. These measures highlight how the Singapore budget aims to boost liquidity while supporting the next generation of high-growth companies.
New investment funds to support high-growth companies and market liquidity
Another S$1.5bn, continuing the Anchor Fund Scheme introduced in 2025, will be invested in high-growth companies to strengthen Singapore’s exchange market. An additional S$1.5bn will also be allocated to asset managers, ultimately boosting Singapore’s overall liquidity and investor attractiveness.
Higher grants to support SME innovation and digital adoption
Additionally, the Singapore budget announced that grants for small and medium-sized enterprises (SMEs) and non-SMEs will be raised to between 50% and 70%, helping businesses explore growth opportunities in areas such as innovation and digital adoption.
Tax rebates and incentives to support international expansion
Singapore businesses will also benefit from a 40% corporate income tax rebate for 2026 alongside enhanced support for global expansion under the Double Tax Deduction for Internationalisation Scheme. This enables businesses to claim up to S$400,000 in tax deductions on expenses related to market research and studies for investment exploration or expansion outside Singapore.
Singapore aligns with global minimum tax under BEPS Pillar Two
For multinational companies, the new domestic top-up tax will be raised to 15% from FY2027, following the BEPS 2.0 (Pillar Two) global minimum tax framework. This ensures profits generated in Singapore are taxed in line with evolving global standards.