---
title: "Singapore's Budget Expected to Boost Stocks, AI Adoption"
description: "Singapore's latest budget aims to enhance its financial hub status with pro-market measures, including a S$6.5 billion capital market reform program. Analysts predict this could boost the FTSE Straits"
type: "news"
locale: "en"
url: "https://longbridge.com/en/news/275855847.md"
published_at: "2026-02-13T06:05:57.000Z"
---

# Singapore's Budget Expected to Boost Stocks, AI Adoption

> Singapore's latest budget aims to enhance its financial hub status with pro-market measures, including a S$6.5 billion capital market reform program. Analysts predict this could boost the FTSE Straits Times Index towards 6000. The budget emphasizes AI and green energy investments, with a projected surplus of 1.0% of GDP for 2026. A 40% corporate tax rebate for 2026 is also introduced to support businesses. Overall, the budget reflects a commitment to fiscal discipline while promoting long-term economic growth and productivity through technology adoption.

By Amanda Lee and Megan Cheah

There was much to welcome in Singapore's latest budget, which included several pro-market and business measures as the city-state seeks to cement its position as a financial hub.

As widely expected, the budget signaled fiscal discipline and a mildly expansionary stance, with another surplus projected for the fiscal year ahead.

A key focus was the government's artificial intelligence strategy, which analysts say could deliver broad benefits across the economy.

Here's what stood out:

Market Boost: The budget stepped up efforts to revive Singapore's equities and capital markets, expanding the main reform program to S$6.5 billion.

Analysts at J.P. Morgan Securities said the added support could push the FTSE Straits Times Index closer to their 6000 target. The STI crossed 5000 for the first time this week, helped in large by the program.

Morgan Stanley said the budget strengthens Singapore's appeal, with measures likely to improve liquidity and attract a stronger pipeline of companies.

Maybank Securities said funds set aside for capital-market development should lift listings and equity fundraising, benefiting exchange operator SGX and brokerage platform iFast.

Fiscal Support: Stocks may also gain from plans to increase government spending in strategic areas such as AI and green energy.

J.P. Morgan said the revision of the 2025 surplus to more than double its earlier estimate "creates a significant buffer to reinvest into the economy." It expects internet, telecom and semiconductor sectors stocks to benefit.

The 2026 budget targets a surplus of about 1.0% of gross domestic product, larger than the 2025 target. Marcus Yiu at Moody's Ratings said the budget reflects a clearer focus on long-term priorities and economic change.

Continued fiscal discipline while preserving room for such spending supports Singapore's credit profile.

AI Strategy: The budget placed strong emphasis on AI, aiming to use the technology to reshape key sectors, including advanced manufacturing.

OCBC's Selena Ling said the plan is not a routine upgrade, but an "all-out, coordinated, multifaceted push" to make AI central to Singapore's economy and workforce for years to come. DBS senior economist Chua Han Teng said AI adoption will boost productivity, especially as Singapore faces land and labor constraints.

Reema Bhattacharya at Verisk Maplecroft said Singapore is not trying to match U.S. or Chinese spending on frontier models, but is instead focused on capacity.

"How Singapore manages power limits, builds its talent pipeline and sustains funding over time will determine whether these investments deliver lasting competitive advantage," she said.

Tax Rebate: The government will grant a 40% corporate income tax rebate for the 2026 year of assessment, a move eToro market analyst Zavier Wong reflects efforts to keep businesses competitive.

Deloitte Singapore's Chai Sook Peng said the move signals a shift away from broad-based support toward more targeted measures and will offer short-term relief to those facing cost pressures.

Write to Amanda Lee at amanda.lee@wsj.com and Megan Cheah at megan.cheah@wsj.com

(END) Dow Jones Newswires

February 13, 2026 01:02 ET (06:02 GMT)

Copyright (c) 2026 Dow Jones & Company, Inc.

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> **Disclaimer**: This article is for reference only and does not constitute any investment advice.