Budget 2026: SMEs and Trade Chambers Seek Cost Relief and Industry Support

Budget 2026: SMEs and Trade Chambers Seek Cost Relief and Industry Support

As the Singaporean government prepares to unveil its Budget 2026, trade chambers and small and medium-sized enterprises (SMEs) are calling for cost relief, industry support, and innovative solutions to address the challenges faced by the business community. This paper examines the key highlights of the Budget 2026 wish lists submitted by trade bodies, with a focus on the proposals put forth by the Singapore Business Federation (SBF) and the Association of Small and Medium Enterprises (ASME).

Introduction

Every year, Singapore’s trade bodies submit their wish lists to the Finance Ministry, outlining their proposals for the upcoming Budget. This year, the wish lists reveal a common theme: the need for cost relief, industry support, and innovative solutions to address the challenges faced by SMEs and the broader business community. With the Singaporean economy facing intense competition, rising costs, and a rapidly changing business landscape, the government is under pressure to deliver a Budget that supports the growth and development of local businesses.

Trade Chambers’ Proposals

The SBF, in collaboration with consultancy firm PwC Singapore, has proposed the creation of a digital intellectual property (IP) collateral registry, which would allow businesses with strong IPs to access financing without traditional forms of collateral. This initiative aims to support the growth of innovative businesses and encourage the development of new technologies. The SBF and PwC Singapore have also called for the government to widen its risk-sharing schemes to cover IP-backed loans with higher ratios of 70 per cent to 80 per cent.

In addition to the IP financing hub proposal, the SBF has also recommended measures to support economy-wide digitization, sustainability, and internationalization. These proposals include incentives for businesses to adopt digital technologies, invest in sustainable practices, and expand into overseas markets.

ASME’s Proposals

The ASME has put the needs of micro-enterprises and small firms at the heart of its Budget wish list. With these businesses making up 94 per cent of enterprises and employing 45 per cent of the workforce, the ASME has called for tailored help to cope with rising costs and foreign competition. The association has proposed measures such as streamlined licensing fees, roll-back of stamp duties on property purchases, and an extension of progressive wages subsidies to 2028.

The ASME has also emphasized the need for more funding and empowerment for business associations, which play a critical role in supporting the growth and development of SMEs. The association has called for the government to provide more resources and support to business associations, enabling them to provide better services and support to their members.

Industry-Specific Proposals

In addition to the proposals put forth by the SBF and ASME, other trade bodies have submitted industry-specific wish lists. For example, the Singapore Retailers Association (SRA) has called for the expansion of climate and CDC vouchers to benefit more merchants, the lowering of the Dependency Ratio Ceiling for retailers to hire more foreigners, and an extension of progressive wages subsidies to 2028.

The SRA has also emphasized the need for rent control, with landlords increasingly raising rents and putting pressure on retailers to maintain their profit margins. The association has called for the government to introduce measures to control rent increases and provide support to retailers who are struggling to cope with rising costs.

Conclusion

The Budget 2026 wish lists submitted by trade chambers and SMEs reveal a common theme: the need for cost relief, industry support, and innovative solutions to address the challenges faced by the business community. The proposals put forth by the SBF, ASME, and other trade bodies offer a range of solutions to support the growth and development of local businesses, from IP financing hubs to tailored support for micro-enterprises and small firms.

As the government prepares to unveil its Budget 2026, it is essential that policymakers take into account the needs and concerns of the business community. By providing cost relief, industry support, and innovative solutions, the government can help support the growth and development of local businesses, driving economic growth and prosperity for all Singaporeans.

Recommendations

Based on the analysis of the Budget 2026 wish lists, this paper recommends the following:

Establish an IP financing hub: The government should establish a digital IP collateral registry and use IP as financing collateral, allowing businesses with strong IPs to access financing without traditional forms of collateral.
Fine-tune help for SMEs: The government should provide tailored support to micro-enterprises and small firms, including streamlined licensing fees, roll-back of stamp duties on property purchases, and an extension of progressive wages subsidies to 2028.
Introduce rent control: The government should introduce measures to control rent increases and provide support to retailers who are struggling to cope with rising costs.
Empower business associations: The government should provide more resources and support to business associations, enabling them to provide better services and support to their members.

By implementing these recommendations, the government can help support the growth and development of local businesses, driving economic growth and prosperity for all Singaporeans.