Singapore’s 2026 budget, announced by Prime Minister Lawrence Wong on 12 February, introduces significant measures aimed at bolstering the nation’s banking, real estate, retail, and telecommunications sectors. The budget includes a 40% corporate tax rebate, capped at S$30,000 for the year of assessment 2026, which is expected to enhance the safe-haven appeal of Singapore banks, according to Rena Kwok, Bloomberg Intelligence Senior Credit Analyst. This move is anticipated to help local businesses manage cost pressures and boost competitiveness.
The budget also outlines a S$37b investment under the Research, Innovation and Enterprise plan, targeting growth in sectors such as aerospace, manufacturing, and biomedical sciences. Ken Foong, Bloomberg Intelligence Real Estate Analyst, notes that this investment will likely increase demand for industrial and office spaces, benefiting landlords like CapitaLand Ascendas and ESR-REIT.
In the banking sector, measures to support households and small businesses are expected to improve asset quality and stimulate loan demand, as highlighted by Sarah Jane Mahmud, Bloomberg Intelligence Senior South and Southeast Asia Banking Analyst. The budget’s S$1.5b allocation to revive equity markets could further enhance bank fee income.
Retail sales are set to receive a boost from budget handouts, including S$500 per Singaporean household and additional cash payments for eligible citizens. These initiatives are likely to increase turnover rents for retail mall landlords, according to Ken Foong.
Furthermore, Singapore’s focus on connectivity within its national AI mission is expected to create 5G monetisation opportunities for telcos like Singtel and StarHub. Chris Muckensturm, Bloomberg Intelligence Industry Analyst, notes that AI tax breaks and streamlined regulations will accelerate digitalisation efforts among SMEs, benefiting telcos’ high-margin ICT and managed-services revenues.
