I.
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Livelihood Benefits: Cash, Subsidies, and Vouchers to Ease Living Costs
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Direct Cash Handouts – Up to S$400
In September 2026, Singapore citizens aged 21 and above will receive a one-time Special Living Expense Grant, with three tiers based on income and property value:
（1） Assessable Income < S22,000 + Annual Value (AV) of Property 15,000: S$400
（2） Middle-income households (S22,000 – S100,000): S200 – S300
（3） Covers approximately 2.4 million people; no property ownership limit (maximum 1 property owned).
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Family-Specific Benefits: Vouchers, Utilities Rebates, and Childcare Support
（1）S$500 Neighbourhood Vouchers: Distributed in January 2027 to all Singaporean households, valid until end-2027. Usable at supermarkets, hawker centers, and neighborhood merchants (50% restricted to supermarkets, 50% for local businesses).
（2）U-Save Utilities Rebates – Up to S570: HDB households receive S330 – S$570 in four installments starting April 2026.
（3）Enhanced Childcare Subsidies: In July 2026, children aged 12 and below get S500 Child LifeSG Vouchers (usable via LifeSG app for QR code payments online/offline). From 2027, the monthly household income ceiling for preschool subsidies rises to S15,000 (benefiting 60,000 households), and the income threshold for student care subsidies increases to S$6,500.
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Targeted Support for Seniors and Low-Income Households
（1） Citizens aged 50 and above with insufficient CPF Basic Retirement Sum (BRS) receive up to S$1,500 CPF top-up (higher subsidies for lower balances).
（2） Enhanced ComLink+ Scheme: Low-income households get an extra S500 quarterly; families with two children receive **up to S10,000 annually** (cash + CPF), with a maximum S$550 quarterly grant for employed individuals.
（3） S$400 million injected into the Long-Term Care Support Fund to boost CareShield Life payouts and premium subsidies.
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II.
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Employment and Labor Market: Higher Salary Thresholds + Wage Subsidies
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Increased Foreign Work Pass Eligibility Criteria
（1）From January 2027, EP minimum monthly salary rises from S5,600 to S6,000 (S$6,600 for financial services).
（2）S Pass minimum monthly salary increases from S3,300 to S3,600 (S$4,000 for financial services).
（3）Existing pass holders must meet new thresholds upon renewal in 2028; foreign worker levies for maritime/processing sectors rise to S600 – S800.
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Higher Local Minimum Wage + Wage Subsidy Extension
（1） From July 2026, the local full-time minimum wage increases from S1,600 to S1,800.
（2） Progressive Wage Credit Scheme (PWCS) extended to 2028: Government co-funds 30% of wage increments in 2026 (up from 20%), 30% in 2027, and 20% in 2028. The minimum qualifying increment rises from S100 to S200 to ease employer costs.
Major Reforms to Work Pass System (2026-2028 Rollout)
(1)
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Key Pass Salary Threshold Adjustments
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Pass Type
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Target Group
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2026 Standard
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2027 New Standard (New Applications)
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2028 New Standard (Renewals)
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Financial Services Requirement
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EP
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Professionals
/Managers
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S$5,600
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S$6,000
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S$6,000
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S6,600 (up from S6,200)
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S Pass
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Mid-Skilled
/Technical
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S$3,300
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S$3,600
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S$3,600
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S4,000 (up from S3,800)
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Note
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Higher salary required for older applicants
(experience-matched)
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1-year transition period for employers
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Higher salary benchmarks due to industry
standards
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(2)
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Simplified and Increased Foreign Worker Levies
Maritime/Processing Sectors: From 2028, unskilled foreign worker levies rise to S600 – S800 (S$800 for non-Northeast Asian workers in processing).
Manufacturing/Services: Merged from 3-tier to 2-tier levy structure; lower rates for companies with compliant foreign worker ratios (≤50% for manufacturing, ≤25% for services):
a. Manufacturing: S300/month (skilled), S470/month (unskilled)
b. Services: S400/month (skilled), S600/month (unskilled)
Policy Objective: Optimize foreign labor structure to complement (not compete with) local workers.
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(3)
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Full Cessation of Performing Artiste Work Permits
From June 1, 2026, new applications for "Performing Artiste Work Permits" are terminated; existing permit holders may work until expiration.
Alternatives: Entertainment venues must hire foreign artistes via EP/S Pass or engage service providers; short-term performances only allowed for government-approved events.
Background: The permit was abused as an "illegal employment channel" – 32 unlicensed artistes were caught in 2025 enforcement actions; the reform strengthens regulation.
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(4)
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Raised Age Limits: Work Pass Holders Can Work Until 63
Maximum age for new applicants unified to 61 (up from 58 for Malaysians, 50 for other nationalities).
Existing holders may renew until 63; 26-year maximum work duration cap lifted for sectors like construction (applies to all skill levels R1/R2).
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III.
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Enterprise Support: Tax Cuts + Financing + Global Expansion – S$37 Billion for Innovation
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Direct Tax Relief and Cash Grants for Enterprises
(1) 2026 Assessment Year: All enterprises employing local workers get 40% Corporate Income Tax Rebate, with a minimum S1,500 cash grant and maximum S30,000 cap.
(2) Expanded Double Tax Deduction for Overseas Expansion: Tax relief ceiling for overseas business expenses increased from S150,000 to S400,000.
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Boost for SMEs: Global Expansion and Financing
(1) SME overseas expansion grant rate raised to 70% (50% for non-SMEs), with S$100,000 per market cap extended to 2029.
(2) Enhanced Enterprise Financing Scheme (EFS) for trade and fixed asset loans; S1 billion to expand "Start-Up & Invest" Program for startups; S1.5 billion special fund to attract companies to list in Singapore.
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S$37 Billion for R&D and AI Transformation
(1) Research, Innovation and Enterprise (RIE) 2030 Plan: Additional S$37 billion for R&D in electronics semiconductors, biomedical sciences, aerospace, etc.
(2) AI Strategy Upgrade: Establish National AI Council (chaired by Lawrence Wong) and AI Park at one-north; enterprises get 400% tax deduction for AI R&D (up to S$50,000 annually in 2027-2028); Productivity Solutions Grant (PSG) covers more AI solutions.
(3) National AI Literacy: Singaporeans receive free 6-month access to AI tools; universities strengthen AI courses; working adults get AI skills training support (e.g., accountants using AI for data processing to focus on high-value tasks).
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IV.
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Economy and Society: Sound Fiscal Surplus + Culture & Sustainability
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Fiscal Position and Economic Outlook
(1) 2025 Fiscal Year: Surplus revised up to S15.1 billion (1.9% of GDP, from initial S6.8 billion); 2026 projected surplus S$8.5 billion (1% of GDP). Spending prioritizes defense, infrastructure, and tech transformation (e.g., Changi Airport Terminal 5).
(2) Strengthen cooperation with emerging markets in Latin America, Africa, and the Middle East; deepen regional integration (e.g., Johor-Singapore Special Economic Zone); target 2%-3% annual economic growth over the next decade.
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Social and Sustainable Development
(1) 20% immediate increase in tobacco tax to strengthen anti-smoking efforts.
(2) Increased funding for Malay Cultural Centre, Chinese Cultural Centre, etc., to preserve multicultural heritage.
(3) Fiscal discipline recognized by Moody's; S$6.5 billion capital market reform plan endorsed by JPMorgan and Morgan Stanley, expected to drive Straits Times Index toward 6,000 points.
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KNOWLEDGE
