Prime Minister Lawrence Wong will be delivering Singapore's 2026 Budget Statement today (Feb. 12) at 3:30pm.
Ahead of the statement, Wong noted that Singaporeans remain anxious about the cost of living and economic uncertainties.
As the economy matures, Singapore is beginning to see "early signs of slowing social mobility," he said.
Meanwhile, Singapore's income gap, measured by the Gini Coefficient, has declined over the past decade and is at its lowest level on record, PM Wong said.
While the data shows the government's policies have worked well over the past 10 years, it will "require more effort and a willingness to adapt and do things differently" to keep Singapore moving in the right direction, he said.
This year's Budget is expected to cover cost pressures, the uncertain external environment, and the impact of technological change.
Keep an eye on this story for the most pertinent updates in real time.
5:02pm: PM Wong concludes speech
PM Wong completed his delivery of the Budget statement.
4:52pm: PARF rebate reduced by 45%
Meanwhile, vehicle taxes will also be adjusted for electric vehicles.
Electric vehicles (EVs) are less pollutive than conventional petrol cars, and as EVs become more common, the need to encourage early deregistration through the Preferential Additional Registration Fee (PARF) rebate is reduced, PM Wong said.
The PARF rebate will thus be reduced by 45 per cent.
The PARF rebate cap will also be decreased from S$60,000 to S$30,000.
This will apply to all cars registered with certificates of entitlement (COE) obtained from the next bidding exercise.
4:52pm: 20% increase in tax of tobacco products.
With effect from today (Feb. 12), a 20 per cent increase in tobacco excise duty across all tobacco products will be implemented.
Excise duty is duty levied on goods manufactured in, or imported into, Singapore, according to the Singapore Customs website.
This is to discourage the consumption of tobacco products, PM Wong said.
4:44pm: Upcoming sports facilities
“Sport is another powerful force that brings Singaporeans together,” PM Wong said.
The government will continue to roll out the Sports Facilities Master Plan, so that Singaporeans can easily access affordable and quality sports facilities.
In the coming years, new facilities will include the Punggol Regional Sport Centre, the Toa Payoh Integrated Development, and sports facilities in Farrer Park and Tengah, alongside revamped sports centres in Hougang and Queenstown.
The Dual-Use Scheme will also be expanded, so that Singaporeans can conveniently access sports facilities in schools.
Singaporeans can also expect more sports programming.
4:43pm: Revamped heritage centre
“Multiculturalism is a defining part of our identity. We cherish and embrace our distinct cultural traditions and heritage, even as we continue to build common ground and a shared identity that unites us as Singaporeans,” PM Wong said.
As such, the government plans to continue strengthening these institutions.
The revamped Malay Heritage Centre will be opened later this year.
Meanwhile, the government will work with Singapore Chinese Cultural Centre to expand its reach and engagement and also provide further support to the Indian Heritage Centre to enhance its outreach and programming.
4:29pm: Cost of living measures
Eligible Singaporeans will receive a Cost-of-living Special Payment comprising S$200 to S$400 in cash.
All Singaporean households will also receive S$500 in CDC Vouchers in January 2027.
Additionally, eligible HDB households will receive 1.5 times the regular amount of U-Save rebates. In total, eligible HDB households will receive up to S$570 of U-Save rebates in the current financial year.
4:27pm: CPF Board to introduce new investment scheme
Separately, CPF Board will be introducing a new investment scheme in 2028.
Called the Lifetime Retirement Investment Scheme, PM Wong said that it is "essentially a life-cycle investment approach, with a predefined glide path to retirement".
The new voluntary scheme is said to complement the existing system by catering to long-term investors who are willing to take some risk for potentially higher returns, but may have less experience in navigating the CPF Investment Scheme (CPFIS) offerings.
4:26pm: CPF top-up for eligible seniors
Singaporeans aged 50 and above, and with CPF retirement saving below the Basic Retirement Sum will be given a CPF top-up of up to S$1,500.
“Those with lower balances will receive larger top-ups, so that support is targeted at where it is most needed,” PM Wong said.
Next, CPF contribution rate increases for senior workers will commence on Jan. 1, 2027.
The rates for workers aged above 55 to 60 will be increased by 1.5 per cent while those above 60 to 65 will be increased by 1 per cent.
“This will help older workers build up their retirement savings in their later working years,” PM Wong said.
Meanwhile, the government will also continue to provide the CPF Transition Offset to employers, covering half of the increase in employer contributions for 2027.
4:22pm: Supporting lower-income families
The government is also enhancing the ComLink+ Progress Packages.
Under ComLink+, each family is paired with a dedicated family coach who works with them to develop personalised action plans and to coordinate support.
There will be a new payout of S$500 per quarter for all ComLink+ families who commit to working with family coaches.
Families will also receive additional payouts when they make “concrete progress in their goals of maintaining stable employment and good preschool attendance for their children”.
More of these payouts will be given in cash, while continuing to set aside monies in their CPF accounts.
With these enhancements, a family with two children under ComLink+ can receive around S$10,000 per year in cash and CPF top-ups, while their children are in preschool.
4:20pm: Child LifeSG Credits
The government hopes to do more to support families, as well as young couples looking to start a family, PM Wong said.
Every Singaporean child aged 12 and below will receive S$500 Child LifeSG credits in 2026.
Parents can use these credits to defray household expenses such as groceries, utilities, and pharmacy items.
Meanwhile, to keep preschool and student care affordable, means-tested preschool subsidies will be extended to more families, by raising the monthly household income threshold to S$15,000.
The monthly household income threshold for Student Care Fee Assistance will also be raised to S$6,500, so that more families can qualify.
4:16pm: Increased minimum salary for Employment Pass and S Pass
Meanwhile, foreign workforce policies are also being refined as Singapore continues to ensure that its “foreign workforce complements a strong Singapore core”, PM Wong said.
The Employment Pass (EP) minimum qualifying salary for new applicants will be increased from S$5,600 to $S6,000 from January 2027.
This maintains the quality of the EP holders, as local wages rise, PM Wong said.
For the financial services sector, which has higher salary norms, the minimum qualifying salary will be raised from S$6,200 to S$6,600.
Similarly, the qualifying salaries for S Pass holders will also be increased from S$3,300 to S$3,600.
For the financial services sector, this will be raised from S$3,800 to S$4,000.
The qualifying salaries for older EP/S Pass applicants will be raised in tandem.
These changes will apply a year later in 2028 for renewal applications, to give businesses more time to adjust.
Work Permit levies will also be adjusted.
For the marine and process sectors, levies for basic-skilled workers will be raised by S$100 and S$150, respectively.
As for the manufacturing and services sectors, the current tiered levy structure will be simplified.
4:10pm: Merging SkillsFuture SG and Workforce SG
To keep up with faster technological change and more frequent job transitions, SkillsFuture Singapore and Workforce Singapore will be merged into a new statutory board.
This will be jointly overseen by the Ministry of Education (MOE) and the Ministry of Manpower (MOM).
“This new agency will be a one-stop shop for skills training, career guidance and job matching services for workers and job seekers,” PM Wong said.
This also means support will be more seamless from career planning to skills acquisitions, job matching and transitions.
For employers, the support will be “more integrated”, covering workforce planning, job redesign, hiring and workforce development.
4:08pm: Lower qualifying salary increased
Support for lower-wage workers will also be strengthened.
The Local Qualifying Salary (LQS) for full-time local employees will be raised from S$1,600 to S$1,800 this year.
To help businesses defray some of the cost, the Progressive Wage Credit Scheme (PWCS) will also be enhanced.
The PWCS co-funding support for 2026 will be raised from 20 per cent to 30 per cent.
The PWCS will also be extended for two more years to 2028.
From 2027, the minimum wage increase to qualify for PWCS support will be raised from S$100 to S$200.
“This will better encourage and reward the firms that invest in their workers,” PM Wong said.
4:05pm: Free access to AI tools
“Using AI well requires learning, practice and the right support,” PM Wong said.
To help those seeking to take up AI-related courses, the SkillsFuture website will also be redesigned to make AI learning pathways clearer and easier to access.
This is so that Singaporeans can quickly find courses that match their work needs and proficiency levels, PM Wong said.
To further encourage learning, Singaporeans who take up selected AI training courses will be given six months of free access to premium AI tools.
4pm: Harnessing AI
With the rise in use of and advancement of Artificial Intelligence (AI) in recent times, Singapore is also looking into harnessing its use.
The government is launching a new set of national Al Missions which will drive transformation in four sectors: advanced manufacturing, connectivity, finance, and healthcare.
A new National Al Council chaired by PM Wong will be established to provide strategic direction and drive Singapore's Al agenda.
Additionally, a new Champions of Al programme will also be launched to support firms with the ambition to use Al to comprehensively transform their businesses.
Following up on the pilot initiative Lorong AI, a co-working space and hub for the AI community, a larger Al park will be established at One-North.
This will be a new cluster to “catalyse ideas, forge collaborations, and translate Al initiatives into practical solutions for businesses and public services,” PM Wong said.
3:45pm: Supporting internationalising businesses
The government is providing a 40 per cent Corporate Income Tax rebate for the Year of Assessment 2026 for eligible businesses.
Every active company that employed at least one local employee last year will receive a minimum benefit of S$1,500.
The total benefit for each company will be capped at S$30,000.
Eligible companies will automatically receive the benefits from the second quarter of 2026 onwards.
To further support local companies as they venture abroad, there will also be enhanced support levels for grant schemes – up to 70 per cent for Small and Medium Entreprises (SMEs) and up to 50 per cent for non-SMEs.
These grants include the Business Adaptation Grant (until Oct. 6, 2027) and the Global Innovation Alliance (GIA) schemes.
The Double Tax Deduction for Internationalisation scheme, which grants companies a 200 per cent tax deduction on selected qualifying activities, will be expanded to allow more qualifying activities to be eligible for automatic tax deduction claims. cover more activities, and the cap for such activities will also be raised to S$400,000.
3:30pm: PM Wong starts delivering Budget Statement
PM Wong has started delivering the Budget statement.
Watch our livestream of the statement here.
3pm: PM Wong arrives at Parliament
Prime Minister Lawrence Wong has arrived at Parliament House to deliver the 2026 Budget statement.
Photo from Mothership
Top photo from Mothership
