Engagement with fast-growing markets in Latin America, Africa and the Middle East will be stepped up, he said.
Within the region, Singapore is working on projects such as the Johor-Singapore Special Economic Zone and the Batam, Bintan and Karimun Free Trade Zones in Indonesia.
“In short, we will redouble our efforts to diversify globally and to integrate regionally,” he said.
Acknowledging cost pressures faced by firms, Mr Wong announced a 40 per cent corporate income tax rebate for the Year of Assessment 2026.
Companies that are active and have employed at least one local employee in 2025 will receive a minimum benefit of S$1,500 (US$1,200) in the form of a corporate income tax rebate cash grant. The maximum benefit per company will be capped at S$30,000.
“This will provide short-term relief as we press on with our restructuring and transformation efforts,” he said.
To create more opportunities and jobs, the government will step up support for local companies venturing overseas.
From April 2026, local small‑ and medium‑sized enterprises (SMEs) that apply for the Market Readiness Assistance grant can receive up to 70 per cent of eligible costs, capped at S$100,000 per company per new market – up from the current 50 per cent.
From the second half of 2026, firms will also be able to tap the grant to deepen their presence in overseas markets, with the removal of the “new to target overseas market” criterion.
Support levels for the Business Adaptation Grant and the Global Innovation Alliance schemes will also be enhanced from April 2026. SMEs will receive up to 70 per cent support for eligible costs, while non-SMEs will receive up to 50 per cent. The higher support levels will apply until end-March 2029.
Changes will also be made to the Double Tax Deduction for Internationalisation scheme.
More qualifying activities will be eligible for automatic 200 per cent tax deduction claims, and the cap on claims that may be filed without prior approval will be increased from S$150,000 to S$400,000.
Eligible expenses for overseas market development trips and overseas investment study trips will no longer require prior approval, along with activities such as investment feasibility studies and production of corporate brochures for overseas distribution.
Companies can also access larger trade and fixed asset loans under the enhanced Enterprise Financing Scheme from April this year. Borrower caps of between S$10 million and S$30 million for each loan facility will be lifted, although borrower groups will remain subject to an overall exposure limit of S$50 million.
Beyond connectivity and enterprise support, Singapore must strengthen its position in key growth clusters, said Mr Wong.
For example, the country invested in advanced packaging research and development more than 20 years ago, anchoring major semiconductor companies here today. Similar approaches have supported industries such as aerospace and biomedical sciences.
“Technology is the critical enabler underpinning our strategy to build leadership in these clusters. Singapore must be a place where frontier technologies are developed, tested and commercialised,” said Mr Wong.
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Within the region, Singapore is working on projects such as the Johor-Singapore Special Economic Zone and the Batam, Bintan and Karimun Free Trade Zones in Indonesia.
“In short, we will redouble our efforts to diversify globally and to integrate regionally,” he said.
TAX REBATES AND SUPPORT FOR BUSINESSES
Acknowledging cost pressures faced by firms, Mr Wong announced a 40 per cent corporate income tax rebate for the Year of Assessment 2026.
Companies that are active and have employed at least one local employee in 2025 will receive a minimum benefit of S$1,500 (US$1,200) in the form of a corporate income tax rebate cash grant. The maximum benefit per company will be capped at S$30,000.
“This will provide short-term relief as we press on with our restructuring and transformation efforts,” he said.
To create more opportunities and jobs, the government will step up support for local companies venturing overseas.
From April 2026, local small‑ and medium‑sized enterprises (SMEs) that apply for the Market Readiness Assistance grant can receive up to 70 per cent of eligible costs, capped at S$100,000 per company per new market – up from the current 50 per cent.
From the second half of 2026, firms will also be able to tap the grant to deepen their presence in overseas markets, with the removal of the “new to target overseas market” criterion.
Support levels for the Business Adaptation Grant and the Global Innovation Alliance schemes will also be enhanced from April 2026. SMEs will receive up to 70 per cent support for eligible costs, while non-SMEs will receive up to 50 per cent. The higher support levels will apply until end-March 2029.
Changes will also be made to the Double Tax Deduction for Internationalisation scheme.
More qualifying activities will be eligible for automatic 200 per cent tax deduction claims, and the cap on claims that may be filed without prior approval will be increased from S$150,000 to S$400,000.
Eligible expenses for overseas market development trips and overseas investment study trips will no longer require prior approval, along with activities such as investment feasibility studies and production of corporate brochures for overseas distribution.
Companies can also access larger trade and fixed asset loans under the enhanced Enterprise Financing Scheme from April this year. Borrower caps of between S$10 million and S$30 million for each loan facility will be lifted, although borrower groups will remain subject to an overall exposure limit of S$50 million.
BUILDING INDUSTRY LEADERS
Beyond connectivity and enterprise support, Singapore must strengthen its position in key growth clusters, said Mr Wong.
For example, the country invested in advanced packaging research and development more than 20 years ago, anchoring major semiconductor companies here today. Similar approaches have supported industries such as aerospace and biomedical sciences.
“Technology is the critical enabler underpinning our strategy to build leadership in these clusters. Singapore must be a place where frontier technologies are developed, tested and commercialised,” said Mr Wong.
Continue reading...