Budget 2026 for Founders: $2.5B You Can Access
PM Wong just committed $2.5 billion in direct startup and capital markets funding in a single budget speech. If you're a founder in Singapore, this isn't just news—it's a funding roadmap. Here's every dollar you can access, how to get it, and what the government's spending priorities tell you about where to build.
Budget 2026 Guide Series
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Overview
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The Founder's Cheat Sheet
| Fund / Programme | Amount | What It Does |
|---|---|---|
| Startup SG Equity | $1B expansion | Government co-invests alongside VCs in growth-stage startups |
| SGX Anchor Fund (tranche 2) | $1.5B | Cornerstone investment for SGX IPOs — your exit pathway |
| Financial Sector Dev Fund | $1.5B top-up | Fintech infrastructure, talent, market development |
| Enterprise Innovation Scheme | 400% tax deduction | AI/innovation spending, up to $50k/year qualifying |
| PSG (Productivity Solutions Grant) | Expanded | AI/digital solutions adoption — your customers can use this to buy your product |
| Internationalization grants | Up to 70% | Overseas expansion support for SMEs |
| Double tax deduction | Cap raised to $400k | Overseas business development expenses |
| 40% corporate tax rebate | Min $1,500, max $30k | Direct cash flow relief for all companies |
$1 Billion in Startup SG Equity: Growth Capital
The big headline: Startup SG Equity gets $1 billion more. Previously focused on early-stage co-investment, this expansion explicitly includes growth-stage companies. The government co-invests alongside qualifying VC partners—typically matching up to 70% of the VC's investment.
What this actually means for founders: If your startup is raising a Series A or B from a qualifying VC, the government can effectively double the round through co-investment. The expansion to growth-stage also means later-stage startups (previously too large for SSG Equity) can now access government matching.
Target sectors reading from the budget speech: AI, semiconductors, quantum computing, biomedical, fintech, and clean energy.
$1.5B Anchor Fund: Your Exit Pathway
The SGX Anchor Fund tranche 2 ($1.5 billion) provides cornerstone investment for companies listing on SGX. Combined with the new SGX-NASDAQ dual listing bridge, the government is building a complete pipeline: fund startups → grow them → list them.
What this actually means for founders: IPO exits on SGX are becoming more viable. The Anchor Fund guarantees a floor of institutional demand for your IPO. The NASDAQ bridge means you can simultaneously access US investors—potentially higher valuations and deeper liquidity. This is the government solving the "SGX is too small" problem with real money.
Champions of AI: Tailored AI Transformation
PM Wong announced the Champions of AI programme—tailored support for companies doing deep AI transformation. He cited DBS and Grab as benchmarks: companies that reorganized data, rebuilt systems, and redesigned processes around AI.
What this actually means for founders: If you're building AI-first, the government wants to showcase you. This isn't just grants—it's potentially government endorsement, pilot opportunities, and access to the National AI Council chaired by DPM Gan Kim Yong. Getting into this programme is a credibility multiplier.
AI Park at One-North: Infrastructure
A new AI park at one-north will anchor compute infrastructure, collaboration spaces, and AI company clustering. One-north already houses Fusionopolis, Biopolis, and Launchpad—the AI park adds a dedicated cluster for AI companies.
What this actually means for founders: Co-location with other AI companies, potential access to shared compute resources, and proximity to A*STAR research labs. If you're an AI startup, one-north just became the default address.
400% Tax Deduction for AI Spending
The Enterprise Innovation Scheme now explicitly includes AI expenditure in its 400% tax deduction. For every $1 you spend on qualifying AI tools, training, or R&D, you get $4 in deductions. Cap: $50,000/year in qualifying expenditure.
Math: $50,000 × 400% = $200,000 deduction. At 17% corporate tax rate = $34,000 in tax savings. If you're spending on AI infrastructure anyway, structuring it as qualifying EIS expenditure is free money.
PSG Expansion: Your Customers' Budget
The Productivity Solutions Grant is expanding to cover more AI and digital solutions. This matters for B2B SaaS founders because your customers can use PSG to buy your product. Getting PSG-approved effectively gives you a government-subsidized sales channel.
If you sell AI tools, automation software, analytics platforms, or digital workflow solutions to SMEs—getting on the PSG approved vendor list should be a priority. The government is essentially paying your customers 50-80% of the cost.
Going Regional: 70% Internationalization Support
Internationalization grants increase to 70% for qualifying SMEs (up from 50%). The double tax deduction cap rises from $150,000 to $400,000 for overseas business development.
What this actually means for founders: Expanding to ASEAN, India, or the Middle East just got significantly cheaper. Market research, trade shows, overseas office setup, partnership development—70% of qualifying costs can be covered. For a startup spending $200k on regional expansion, that's $140k in support.
Where to Build: Reading the Government's Investment Map
Budget speeches tell you where the government will spend for the next 3-5 years. Follow the money:
- AI / ML: National AI Council, AI park, Champions programme, 400% deduction — maximum signal
- Semiconductors: Advanced packaging, chip design investment — strong signal
- Quantum computing: Center for Quantum Technologies, first quantum system outside US — emerging signal
- Healthcare / Biotech: One of 4 National AI Missions, $37B RIE 2030 — strong signal
- Fintech: $1.5B Financial Sector Dev Fund, SGX-NASDAQ bridge — strong signal
- Clean energy: Solar target raised to 3GWp, nuclear cooperation, ammonia bunkering — growing signal
- Defence tech: 3% GDP, drones, AI-enabled surveillance — quiet but real signal
If you're starting something new, these sectors will have the most government support, the most GovTech procurement opportunities, and the most grant funding over the next 5 years.
Protecting Founder Wealth
Startup founders often have concentrated risk—all equity in one company. Budget 2026's global uncertainty message is a reminder to diversify personal holdings. Gold provides uncorrelated protection that's tax-efficient in Singapore and liquid when you need it.
Read More Budget 2026 Guides
- Budget 2026: Top 10 Things You Need to Know
- Budget 2026 for Business Owners & SMEs
- Budget 2026 for AI & Deep-Tech Specialists
- Budget 2026 for Investors
- Budget 2026 for High-Income Earners
Frequently Asked Questions
How much startup funding is available in Budget 2026?
Budget 2026 commits $1 billion to Startup SG Equity (growth-stage co-investment), $1.5B to the SGX Anchor Fund (IPO support), and $1.5B to the Financial Sector Development Fund. Combined with tax deductions and grants, over $4B is directed at the startup ecosystem.
What is the Champions of AI programme?
A tailored support programme for companies undertaking deep AI transformation, modelled after success stories like DBS and Grab. It provides customized assistance for organizing data, rebuilding systems, and redesigning processes around AI capabilities.
Can startups access the 400% AI tax deduction?
Yes. The Enterprise Innovation Scheme applies to all Singapore companies, including startups. Qualifying AI expenditure (tools, training, R&D) gets 400% tax deduction up to $50,000/year. At 17% tax rate, that's up to $34,000 in savings annually.
What is the SGX-NASDAQ dual listing bridge?
A new framework allowing Singapore-listed companies to simultaneously list on NASDAQ. This gives Singapore startups access to deeper US capital markets and potentially higher valuations, while maintaining their SGX presence. Combined with the $1.5B Anchor Fund, it creates a viable IPO exit path.
How can startups access internationalization grants?
Enterprise Singapore manages internationalization grants offering up to 70% support for qualifying overseas expansion activities. The double tax deduction cap for international business development rose from $150,000 to $400,000.