Prime Minister and Finance Minister Lawrence Wong will deliver Singapore’s 2026 Budget on Thursday (Feb 12).
This will be his second Budget as the country’s prime minister.
In last year’s speech, Mr Wong set out a raft of measures to tackle immediate challenges for Singapore, while building the foundation for longer-term resilience.
Watch the Budget speech live on CNA from 3.30pm and follow our blog for all the announcements.
How did Singapore’s economy fare last year?
Singapore’s GDP ended 2025 on a solid footing, expanding 5 per cent for the full year and beating the Ministry of Trade and Industry’s advance estimate of 4.8 per cent.
It’s the first time since 2010 and 2011 that Singapore has sustained annual growth above 5 per cent for two straight years.
Growth was especially strong in the fourth quarter, with GDP rising 6.9 year-on-year, up from 4.6 per cent in Q3.
So what drove this stronger-than-expected performance?
Support for workers to feature in Budget
Support for workers will be part of this year’s Budget, Mr Wong said in a video message yesterday, adding that he will outline more details in his statement.
Despite Singapore’s strong economic performance last year and a healthy labour market, many Singaporeans remain concerned about jobs, he said, citing rapid technological change and an uncertain external environment.
The government will step up efforts to help workers navigate career shifts, upgrade their capabilities and access jobs that offer stronger wage growth.What to expect this year?
Experts are predicting largely familiar themes, such as support for families, funds to boost productivity and upgrade workers’ skill, and continued plans to build up Singapore’s competitiveness.
But they also forecast some shifts, notably with regard to handouts, which – brace yourselves – may not be as generous as those in previous years.
“As inflation pressures ease, policy may shift toward more targeted assistance for households facing greater financial strain, alongside structural measures that support income growth and productivity,” said Assistant Professor Chua Yeow Hwee, an economist from Nanyang Technological University.
Timing is also key. Last year’s Budget came ahead of the General Election. This is the first Budget for the new government term, and analysts expect a degree of fiscal caution.
Maybank economists Chua Hak Bin and Brian Lee said the government is likely to be prudent in the first year of the new electoral term, “preserving some dry powder to draw upon”.
Analysts also noted that this year’s measures may not match the scale of handouts seen during milestone years like SG50 and SG60.
CNA
