SINGAPORE, 12 February 2026 – The Singapore Malay Chamber of Commerce & Industry (SMCCI) welcomes the measures announced in Budget 2026, particularly those aimed at helping businesses manage rising costs, strengthen workforce capabilities, adopt technology, and pursue growth opportunities locally and overseas.
SMCCI notes that several concerns raised by businesses during our pre-Budget engagement and ground survey in January 2026 have been addressed through targeted and practical interventions.
Responding to Cost Pressures
Budget 2026 provides near-term relief for businesses facing cumulative cost pressures through measures such as the 40% Corporate Income Tax Rebate, capped at S$30,000 per company, with a minimum benefit for active firms employing at least one local employee. These measures will help SMEs manage cash flow pressures while continuing their restructuring and transformation efforts.
Supporting Workforce and Productivity Transformation
The continued emphasis on workforce upgrading, productivity and technology adoption including enhanced SkillsFuture initiatives, AI adoption support, wage credits, and expanded Productivity Solutions Grant (PSG) aligns with SMCCI’s call for practical, SME-fit support that improves productivity without disproportionately increasing operating costs.
Co-founder of Tinkermind, Mr Ismail Khamis said,
“As an education provider, we will leverage the Government’s support measures to strengthen our AI capabilities, while ensuring its responsible use in the learning environment.
We are encouraged by the continued focus on productivity, with support schemes and tax reliefs that enable workers to upskill and build future-ready teams.”
Mr Gary Haris, Senior Business Development Manager of Royal Kings Group, added,
“The strong push to support businesses and workers in the AI-powered economy is welcome. The enhanced 400% tax deduction on qualifying AI expenses, together with targeted training support, gives SMEs confidence to invest in productivity and innovation. The merger of Workforce Singapore and SkillsFuture Singapore will further streamline workforce support, helping companies upskill more efficiently.”
Adjustments to local qualifying salaries and foreign manpower frameworks further reinforce the need for sustainable manpower planning.
Strengthening Access to Financing and Growth Opportunities
SMCCI welcomes the enhancements to internationalisation and financing schemes, including:
- Higher grant support of up to 70% for SMEs under overseas market initiatives
- Enhancements to the Market Readiness Assistance (MRA) Grant to support deeper overseas expansion
- Upgrades to the Enterprise Financing Scheme with higher loan limits
- Continued investments to strengthen the startup and enterprise ecosystem
These measures are especially important for smaller enterprises and home-based businesses navigating tighter cash flow and growth constraints.
Supporting Regionalisation and Living Heritage Businesses
SMCCI is encouraged by measures that strengthen Singapore’s regional connectivity and long-term enterprise ecosystem. Businesses in heritage precincts stand to benefit from initiatives that support sustainability, workforce readiness and productivity while preserving cultural vibrancy.
SMCCI President, Dr Abdul Malik Hassan said,
“Budget 2026 sends a clear signal that while short-term relief is necessary, transformation remains essential. SMEs must use this window of support to strengthen productivity, upgrade capabilities, and pursue regional growth opportunities. SMCCI stands ready to guide our members through this next phase from workforce planning and AI adoption to internationalisation ensuring that our enterprises not only manage today’s pressures but emerge stronger and more competitive.”
To translate policy into action, SMCCI will provide targeted support focused on micro, small and family-run enterprises. This includes guidance on cost relief and financing schemes, workforce planning, AI and digital adoption, and regional expansion.
SMCCI will also continue working closely with agencies to ensure schemes remain practical and accessible.
By partnering government agencies and industry stakeholders, SMCCI aims to help businesses adapt, transform, and grow with confidence.