Budget 2026 for Investors: SGX, CPF & Beyond
Singapore is spending $155 billion this year. Where that money goes tells you where the investment opportunities are. Budget 2026 has significant implications for SGX, CPF investing, and your portfolio. Here's the investor's breakdown—beyond gold.
Budget 2026 Guide Series
This article is part of our comprehensive Budget 2026 analysis. Explore guides tailored to your demographic or sector:
Overview
Demographics
Property
The Investment-Relevant Numbers
| Item | Amount | Investment Signal |
|---|---|---|
| SGX Anchor Fund tranche 2 | $1.5 billion | More IPOs and listings on SGX |
| SGX-NASDAQ dual listing | Framework announced | Singapore-listed companies accessible to US investors |
| Financial Sector Dev Fund | $1.5 billion top-up | Deeper capital markets infrastructure |
| Startup SG Equity | $1 billion expansion | More growth-stage startups, eventual IPO pipeline |
| CPF life-cycle scheme | Launching 2028 | Passive investing for CPF, potential gold ETF allocation |
| Pillar 2 BEPS (15% min tax) | From FY2027 | Impacts MNC earnings, tax-haven advantages shrink |
| Fiscal surplus (FY2025) | $15.1 billion | Strong fiscal position, AAA credit maintained |
| Expected surplus (FY2026) | $8.5 billion | Comfortable but declining from FY2025 |
SGX Renaissance: More Listings, More Liquidity
SGX has struggled with low trading volumes and a thin IPO pipeline for years. Budget 2026 throws serious money at the problem:
- $1.5B Anchor Fund (tranche 2) to attract companies to list on SGX—the government essentially co-invests to give IPOs a floor of demand
- SGX-NASDAQ dual listing bridge: Singapore-listed companies can simultaneously list on NASDAQ, exposing them to US investor demand and potentially higher valuations
- $1.5B Financial Sector Development Fund top-up for market infrastructure, fintech, and talent development
What this actually means: If you've been frustrated by SGX's limited options compared to NYSE or HKEX, the government is actively trying to fix this. The NASDAQ bridge is particularly significant—it could bring higher liquidity and US institutional interest to Singapore-listed stocks. Watch for new IPOs in the AI, semiconductor, and biotech spaces over the next 2–3 years.
$1B Startup Growth Capital: The IPO Pipeline
Startup SG Equity gets $1 billion more for growth-stage companies. This is government co-investment alongside private VCs, targeting startups ready to scale beyond seed stage.
More funded startups eventually means more potential IPOs. Combined with the Anchor Fund, the government is building a pipeline: fund startups → grow them → list them on SGX. For investors, this means a growing universe of investable companies in Singapore's key sectors.
CPF Investing: Life-Cycle vs Self-Directed
The new CPF life-cycle investment scheme (2028) will fundamentally change how most Singaporeans invest their CPF. Here's how it compares:
| Feature | CPFIS (Current) | New Life-Cycle Scheme (2028) |
|---|---|---|
| Approach | Self-directed, pick individual funds/stocks | Professionally managed, auto-rebalancing |
| Participation | ~18% of eligible members | Expected to be much higher (opt-in voluntary) |
| Costs | Varies by fund (0.5%–2.5% fees) | Low-cost mandate from government |
| Gold exposure | SPDR Gold Shares (O87), $20k OA minimum | Likely 5–10% commodities in growth portfolio |
| Providers | Multiple fund houses | 2–3 appointed providers |
For a detailed analysis, see our CPF investment scheme 2028 guide.
What this actually means: If you're already a savvy investor doing your own CPFIS allocations, the new scheme is optional—you can keep self-directing. But if you've been leaving your CPF in OA earning 2.5% because you don't know where to start, the life-cycle scheme offers a better default.
CPF Rates: Are They Enough?
Let's be honest about CPF interest rates:
| CPF Account | Interest Rate | vs Inflation (~3%) |
|---|---|---|
| Ordinary Account (OA) | 2.5% | Below inflation |
| Special Account (SA) | 4.08% | Slightly above inflation |
| Retirement Account (RA) | 4.08% | Slightly above inflation |
| MediSave (MA) | 4.08% | Slightly above inflation |
Your OA balance is losing purchasing power in real terms. This is why investing OA funds—whether through CPFIS or the new 2028 scheme—matters. For comparison, gold returned 93% over the past 12 months while OA earned 2.5%.
Pillar 2 BEPS: 15% Minimum Corporate Tax
From FY2027, Singapore implements the BEPS Pillar 2 framework—a global minimum corporate tax of 15% for large MNCs. Currently, Singapore's effective tax rate for many MNCs is below 15% due to various incentives.
What this actually means for investors: Companies like tech MNCs that enjoyed ultra-low effective tax rates in Singapore may see modestly higher tax bills. However, the government has said they'll recycle the additional tax revenue into incentives—so the net impact may be neutral. It does reduce Singapore's tax arbitrage advantage versus other jurisdictions.
Sector Signals: Where the Government Money Goes
Follow the government spending to find investment themes:
- AI & semiconductors: National AI Council, AI park at one-north, advanced packaging investment → look at chip-related stocks and AI-enabled companies
- Healthcare & eldercare: $400M Long-Term Care Fund top-up, CareShield enhancements → healthcare REITs and service providers
- Defence & security: 3% GDP, "prepared to go higher" → Singapore's defence-related listed companies (ST Engineering)
- Green economy: Carbon tax at $45/ton, EV push → clean energy, EV infrastructure
- Financial services: SGX-NASDAQ bridge, $1.5B FSDF → SGX itself, Singapore-listed financial firms
Fiscal Health: The Safety Net
Singapore posted a $15.1 billion surplus in FY2025 and expects $8.5 billion in FY2026. Reserves remain robust, and the AAA credit rating is secure. For investors, this means:
- Singapore government bonds remain ultra-safe
- The SGD is backed by one of the strongest fiscal positions globally
- The government can afford to spend through downturns without fiscal stress
But the declining surplus trajectory (from $15.1B to $8.5B) shows spending is outpacing revenue growth. Long-term, this is sustainable—but worth monitoring.
The Gold Portfolio Position
For investors with a diversified portfolio, gold plays a specific role: uncorrelated protection during market stress. Budget 2026's "uncertain world" narrative, combined with bank forecasts of $5,800–$6,300, suggests the macro backdrop remains favourable for gold.
Whether through CPF-based gold ETFs, SRS gold investment, or physical gold from UOB, a 5–15% gold allocation complements stock and bond holdings. Track live gold prices for current rates.
Read More Budget 2026 Guides
- Budget 2026: Top 10 Things You Need to Know
- Budget 2026 for Salaried Employees
- Budget 2026 for Fresh Graduates & Job Seekers
- Budget 2026 for Business Owners & SMEs
- Budget 2026 for Seniors & Retirees
Frequently Asked Questions
How does Budget 2026 affect SGX investors?
The $1.5B Anchor Fund and SGX-NASDAQ dual listing bridge aim to increase IPO activity and trading volumes on SGX. More listings mean more investable options. The NASDAQ bridge could also bring higher valuations for Singapore-listed companies through US investor access.
What is the new CPF life-cycle investment scheme?
Launching in 2028, this voluntary scheme offers professionally managed, low-cost portfolios that auto-rebalance as you age. It runs alongside existing CPFIS. Expected to include 5–10% commodities exposure (potentially gold ETFs). See our CPF scheme analysis.
Will the Pillar 2 BEPS 15% minimum tax hurt Singapore stocks?
The impact should be modest and largely offset. Singapore will implement the 15% minimum corporate tax from FY2027 for qualifying MNCs, but plans to recycle additional revenue into new incentives. Companies already paying effective rates above 15% won't be affected.
Which sectors should investors watch after Budget 2026?
Follow the money: AI and semiconductors (National AI Council, AI park), healthcare (CareShield expansion, $400M long-term care fund), defence (3% GDP+), financial services (SGX-NASDAQ bridge), and green economy (carbon tax trajectory pushing clean energy).
Is Singapore's fiscal position still strong for long-term investors?
Yes. Singapore posted a $15.1B surplus in FY2025 (expected $8.5B in FY2026), maintains AAA credit rating, and has substantial reserves. The declining surplus trajectory warrants monitoring, but Singapore remains one of the strongest fiscal positions globally.