Budget 2026 expands support for overseas business growth
Budget 2026 boosts grants, tax breaks and loans to help Singapore companies expand overseas amid global uncertainty.
Singapore’s Budget 2026 introduces a wider set of measures aimed at helping local companies expand overseas, with stronger support for grants, tax deductions and financing. The announcement was made by Finance Minister and Prime Minister Lawrence Wong during his Budget speech on 12 February, as part of a broader push to help businesses manage a more complex global environment.
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The measures are designed to address the practical challenges companies face when operating outside Singapore. These include unfamiliar regulations, different business practices, and strong competition from local players. Small and medium-sized enterprises are expected to benefit most from the changes, but larger firms will also see improvements in selected schemes.
Speaking during the Budget presentation, PM Lawrence Wong said that “doing business overseas is not easy”, especially for smaller firms. He added that the government’s role is to ensure companies have the tools and confidence to pursue international opportunities in a sustainable way, even as global conditions become more uncertain.
At the centre of the changes is a commitment to raise support levels for companies that are ready to scale beyond Singapore. The government’s approach focuses on lowering financial barriers while encouraging firms to deepen their presence in overseas markets rather than pursue one-off expansion efforts.
Higher grants for market entry and expansion
One of the most significant updates in Budget 2026 is the enhancement of grant schemes that support internationalisation. Support levels will be increased to up to 70% for small and medium-sized enterprises and up to 50% for non-SMEs. This reflects a clear intention to reduce upfront risk for firms entering or growing in foreign markets.
The Market Readiness Assistance grant will also be expanded in scope. Previously focused on helping companies enter new markets for the first time, the scheme will now support firms that want to deepen their activities in existing overseas markets. This change recognises that long-term success often requires sustained investment rather than initial market entry alone.
Under the revised scheme, SMEs can continue to receive support of up to 50% of eligible costs, capped at S$100,000 per company per new market. From 1 April, the support level will be raised to up to 70%, with the enhanced cap of S$100,000 extended until 31 March 2029. The longer time horizon is intended to give companies greater certainty when planning multi-year expansion strategies.
These grant enhancements are part of a broader effort to ensure public funding translates into measurable outcomes. Rather than encouraging companies to expand quickly, the focus is on helping them build operational depth, local partnerships, and long-term competitiveness in overseas markets.
Tax deductions and financing schemes strengthened
Beyond grants, Budget 2026 also improves tax and financing tools available to businesses pursuing international growth. The Double Tax Deduction for Internationalisation scheme will see its cap raised to S$400,000. In addition, more qualifying activities will be made eligible for automatic tax deduction claims, reducing administrative effort for companies.
Currently, firms enjoy a 200% tax deduction on selected qualifying activities under the scheme, capped at S$150,000. The higher cap and broader eligibility are intended to support a wider range of international activities, including market development, partnerships and overseas business development efforts.
Financing support will also be expanded through upgrades to the Enterprise Financing Scheme. The government said the changes will give companies more flexibility to meet different financing needs by increasing the maximum loan quantum for trade loans and fixed asset loans. This is particularly relevant for capital-intensive overseas projects that require larger upfront investment.
Existing caps, which range from S$10 million per borrower for trade loans to S$30 million per borrower for SME fixed asset loans, will be lifted. Loans will instead be subject to an overall exposure limit of S$50 million. Eligible companies will automatically receive the benefits from the second quarter of the 2026 calendar year onwards, simplifying access to financing support.
Focus on deeper global and regional integration
Looking beyond individual schemes, the government signalled a broader strategic direction for Singapore’s economic engagement. PM Lawrence Wong said Singapore will step up engagement with fast-growing markets, including those in Latin America, Africa and the Middle East, as part of efforts to diversify trade and investment links.
“In short, we will redouble our efforts to diversify globally and to integrate regionally,” he said. “But connectivity alone is not enough. It must translate into real opportunities that our businesses can seize.”
More support will also be introduced for companies pursuing large overseas ventures that require higher capital outlay. Details will be announced by the Ministry for Trade and Industry during its upcoming Committee of Supply debate.
PM Lawrence Wong highlighted examples of companies that have successfully expanded beyond Singapore, including Rotary Engineering. Founded in 1972, the firm began by providing electrical installation services to oil refineries and petrochemical plants in Singapore. Over time, it has built a strong presence across South-east Asia in energy infrastructure services and is now expanding into the Middle East.
The example underscores the government’s broader message in Budget 2026. Internationalisation is not limited to large multinationals but is increasingly seen as a necessary growth path for capable local firms. With higher grants, improved tax incentives and more flexible financing, the government aims to give businesses the confidence to take that step.
