Budget 2026: More grants, tax breaks and loans to support overseas expansion for businesses

Follow The Business Times’ live coverage of Singapore’s Budget 2026 here.[SINGAPORE] Singaporean companies seeking to venture abroad can expect greater government support in the form of grants, tax deductions and loans, said Finance Minister Lawrence Wong in his Budget speech on Thursday (Feb 12).These measures are being stepped up as Wong, who is also Prime Minister, acknowledged that “doing business overseas is not easy”, especially for smaller firms, given unfamiliar regulations, differing business practices and intense local competition.Support levels for grant schemes that help companies internationalise will be enhanced to up to 70 per cent for small and medium-sized enterprises (SMEs) and up to 50 per cent for non-SMEs.The Market Readiness Assistance (MRA) grant - a broad-based programme designed to support companies venturing abroad for the first time - will also be enhanced to help firms not only access new markets but deepen their activities in existing overseas markets as well.The MRA grant allows SMEs to obtain support of up to 50 per cent of eligible costs, capped at S$100,000 per company per new market. From Apr 1, the grant will be enhanced to to increase support to up to 70 per cent, applicable until Mar 31, 2029. An enhanced grant cap of S$100,000 will be extended.On the Double Tax Deduction for Internationalisation scheme, PM Wong said the cap will be raised to S$400,000, and more qualifying activities will be made eligible for automatic tax deduction claims. Currently, companies enjoy a 200 per cent tax deduction for selected qualifying activities under the scheme, capped at S$150,000.The Enterprise Financing Scheme will also be upgraded to give companies “more flexibility to cater to their different financing needs” by increasing the maximum loan quantum for trade and fixed asset loans. Caps on current facilities, ranging from S$10 million per borrower for trade loans to S$30 million per borrower for SME fixed asset loans, will be lifted and loans will be subject to an overall exposure limit of S$50 million. More support for companies pursuing significant overseas ventures that require higher capital outlay will be introduced. Details will be announced by the Ministry for Trade and Industry at its upcoming Committee of Supply debate. “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.” PM Wong noted many companies are already doing this, such as Rotary Engineering.The construction engineering company was founded in 1972, offering electrical installation services to oil refineries and petrochemical plants in Singapore. It has now built a leading presence in South-east Asia delivering energy infrastructure services and is venturing further afield into the Middle East.