Budget 2026 comes at a pivotal time for Singapore. Global uncertainty continues to reshape the way businesses operate, with rising geopolitical tensions, supply chain disruptions and slower global growth affecting confidence. Domestically, households, like in many other countries, remain concerned about the cost of living, while companies are balancing higher operating costs, talent pressures and rapid technological change.
There are several areas where Budget 2026 can play an important role in supporting competitiveness and resilience, based on data and insights from CPA Australia members and across the Asia Pacific (Apac region). Singapore has a strong foundation, but the next stage of growth will depend increasingly on how effectively businesses, particularly small and medium enterprises (SMEs), strengthen their digital capability, embrace artificial intelligence, improve cybersecurity and manage sustainability obligations.
As a long-standing contributor to Singapore’s business community, CPA Australia believes the Budget should focus on four key priorities.
1. Supporting SME growth by lifting digital and AI adoption
SMEs remain the backbone of Singapore’s economy. However, our small business survey indicates that only 44% of local small businesses grew last year. While expectations for 2026 are more positive, optimism still lags behind fast-growing markets such as Vietnam and India.
One trend is particularly concerning. After many years of progress, digital adoption among Singapore’s small businesses declined in 2025. Fewer firms are generating revenue through digital channels or using digital payments compared with earlier years. This suggests that the momentum built during the pandemic and through the government’s digital support programmes has slowed.
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Several factors may explain this. Competition from global low-cost platforms has intensified and customer acquisition costs have increased. Many business owners remain cautious about investing in digital tools during a period of weaker demand. Singapore’s ageing demographics also mean that mature business owners may require more targeted support to keep pace with change.
Budget 2026 can help reverse this slowdown by strengthening digital support schemes. Broadening the Productivity Solutions Grant to include more advanced technologies such as automation and AI would give SMEs access to tools that deliver measurable productivity gains. Reintroducing a Digital Acceleration Grant, tied to outcomes such as increases in digital revenue or export activity, would also help.
Skills development will be just as important. Training programmes designed for mature workers and business owners can ensure that Singapore’s demographic profile becomes a strength rather than a constraint. Support for regional expansion, including cross border logistics credits and marketplace onboarding grants, would further enable SMEs to tap high growth markets in Asia.
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2. Helping businesses move from experimenting with AI to integrating it effectively
Singapore has one of the highest rates of AI usage in the region. CPA Australia’s 2025 Business Technology survey shows that 92% of Singapore’s businesses used AI in the past year, slightly above the global average. However, only 18% have integrated AI across their organisation. Most firms are still using off-the-shelf AI tools for isolated tasks.
To unlock AI’s full productivity potential, businesses need more support to scale adoption. Budget 2026 could introduce fast-track AI vouchers to help companies test small, practical use cases with minimal administrative requirements. These pilots allow firms to demonstrate value quickly before committing to larger investments.
Once again, skills development will be key. Many businesses don’t have the necessary in-house skills and therefore need training in areas such as prompt engineering, safe data handling and workflow integration. Skills vouchers for practical AI training would increase confidence in implementation.
An AI mentorship scheme would also be beneficial. Pairing SMEs with experienced adopters for several weeks of hands-on guidance can help businesses avoid common pitfalls and identify use cases that genuinely improve productivity. An AI readiness diagnostic tool could further assist companies by assessing data quality, workflow suitability and workforce capability.
3. Strengthening cybersecurity to support digital and AI transformation
While Singapore has strong digital infrastructure, cybersecurity adoption among businesses is uneven. Only 69% of organisations use cybersecurity software, compared with the survey average of 81% across the region. Almost one in three Singapore businesses remain reactive rather than proactive in managing cyber risks.
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Budget 2026 can help raise the national baseline. Subsidised cyber health checks and practical workshops would allow SMEs to identify vulnerabilities early. Sector- specific learning networks could also be funded to share alerts and real-world case studies. Facilitating collective procurement of essential cybersecurity tools would reduce costs and help businesses replace outdated systems.
4. Strengthening ESG readiness and supporting capital market development
Businesses are preparing for changes brought on by mandatory ISSB-aligned sustainability reporting for listed companies. Budget 2026 can support this transition by expanding grants for ESG data infrastructure and by supporting training pipelines for sustainability and assurance professionals. Sector-specific transition roadmaps can also guide smaller companies through complex requirements.
Singapore’s capital markets also have an important role in supporting long term growth. IPO activity reached its highest level in several years in 2025, and the pipeline for 2026 remains strong. Budget 2026 could build on this momentum by expanding the Equity Market Development Programme to include green and sustainability mandates. Providing incentives for high-growth and technology companies to list locally would strengthen Singapore’s appeal as a financial hub.
Singapore has consistently demonstrated forward-looking policymaking. Budget 2026 offers an opportunity to reinforce that reputation by supporting businesses through transformation, strengthening household resilience and ensuring that the economy remains competitive in a more challenging global environment.
Nicklaus Wee is the Singapore country manager for CPA Australia.
