Singapore:
Additional Cost-of-Living and Business Support Measures

Following recent global developments, the Singapore Government has announced a further set of measures to support businesses, workers, and households amid rising costs, particularly those linked to higher energy prices and ongoing global supply disruptions.

These measures supplement those introduced in Budget 2026 and are intended to provide near‑term financial relief, while reinforcing Singapore’s economic resilience in an increasingly uncertain global operating environment.

 

Summary of Key Measures

 

Measures Affecting Businesses

 

Enhancement of Corporate Income Tax (CIT) Rebates

To mitigate the impact of rising operating costs, the Government has enhanced the corporate income tax rebate framework:

• The CIT rebate has been increased from 40% to 50%
• The maximum rebate cap per company has been raised from S$30,000 to S$40,000

 

Corporate Income Tax Rebate Cash Grant

(Applicable to companies employing local employees)

• Companies employing at least one local employee will receive an increased minimum cash grant, raised from S$1,500 to S$2,000

The enhanced CIT rebates and cash grants are expected to be disbursed as early as end‑April, subject to prevailing administrative processes.

 

Expansion of the Energy Efficiency Grant (EEG)

The Energy Efficiency Grant has been expanded to support businesses in managing longer‑term cost pressures arising from energy price volatility:

• Coverage expanded to all sectors, compared to earlier sector‑specific eligibility
• Extended application period until 31 March 2028 (previously 31 March 2027)

This enhancement is intended to encourage broader adoption of energy‑efficient equipment and processes, thereby supporting cost management and sustainability objectives.

 

 

Measures Affecting Households

Additional Cost-of-Living Support

In view of continued pressures on household expenses, the Government has announced the following enhancements:

Community Development Council (CDC) Vouchers

• S$500 in CDC vouchers will be issued earlier, commencing from June 2026

Cost-of-Living Special Payment

• Eligible Singaporean adults will receive an additional S$200, on top of amounts previously announced under Budget 2026

U-Save Rebates

• Eligible HDB households will receive up to 1.5 times the regular U‑Save rebate
• This may amount to up to S$570 in U‑Save rebates for FY2026, aimed at offsetting higher utility costs

 

 

Energy and Food Security Considerations

The Government has reiterated that:

• Singapore maintains adequate fuel and food reserves
• Key global supply chains and trade routes continue to be actively monitored
• Contingency measures are in place to safeguard energy and food supply security

 

Notwithstanding these assurances, the Government has cautioned that price levels may remain elevated, depending on how external conditions evolve.

 

 

Implications and Observations

From a tax and regulatory perspective, these measures provide short‑term fiscal relief while underscoring broader policy objectives, including:

• Cost containment and cash‑flow support for businesses
• Increased emphasis on energy efficiency and sustainability
• Continued targeted assistance for households most affected by inflationary pressures

 

Businesses should assess:

• their eligibility for enhanced tax rebates and grants;
• the cash‑flow impact of earlier disbursements; and
• opportunities to leverage the expanded Energy Efficiency Grant.

 

Households should review eligibility for the announced payments and rebates against their individual circumstances.

 

Concluding Remarks

These measures reflect Singapore’s continued approach of providing timely, targeted support, while preserving fiscal prudence and long‑term economic resilience.

Clients are encouraged to review how these measures apply to their specific business or personal tax position and to incorporate the announced reliefs into their broader financial and tax planning considerations.

 

View the full article in PDF here.

 

 

CONTACT US

CLA Global TS Tax Advisory Specialists

Edwin Leow Co- Advisory Leader Director, Head of Tax edwinleow@sg.cla-ts.com

Belinda Lim Associate Director, Tax belindalim@sg.cla-ts.com