Singapore to provide $1b support package amidst rising energy costs

Cash payouts, tax rebates, and grants aim to support households, businesses, and transport workers.

Singapore will roll out close to $1b in additional support measures to help households, businesses and workers manage rising costs linked to the Middle East conflict, Acting Transport Minister and Senior Minister of State for Finance Jeffrey Siow said.

The measures supplement the broad-based support announced in Budget 2026, with targeted relief for transport workers, businesses and households.

“In Singapore, petrol and diesel prices have already risen sharply in tandem with global oil prices, and are likely to remain elevated for some time,” Siow said in Parliament on 7 April.

The government will disburse $200 in cash to active platform workers, private hire car drivers and taxi drivers from the end of the month.

It will also provide temporary assistance to co-fund cost increases for essential bus services for school students, seniors and persons with disabilities.

For businesses facing higher energy and logistics costs, the Corporate Income Tax rebate for the Year of Assessment 2026 will be raised from 40% to 50%. The minimum benefit is also set to increase.

Meanwhile, the Energy Efficiency Grant will be expanded to all sectors, with support extended to 31 March 2028.

Siow said that the government is also engaging firms in the energy and chemicals sector affected by feedstock disruptions to assess targeted support.

For households, the government will give out $500 in CDC vouchers in June instead of January 2027. It will also increase the Cost-of-Living Special Payment by $200 for eligible Singaporeans.

“About 2.4 million Singaporeans will receive this additional payment in cash, which will be disbursed in September,” Siow said.

He added that the government will make further adjustments as needed, working within the Supply Act provisions initially and seeking Parliament’s approval for a supplementary budget later.