Singapore Budget 2026 Modestly Expansionary

Singapore's FY2026 budget is modestly expansionary, focusing on equity market rejuvenation, AI adoption, and household support. UBS remains 'Attractive' on Singapore equities and expects further SGD strength and MAS policy tightening.

Key Takeaways

• 1.Singapore's FY2026 budget is modestly expansionary, reflected by a shift in the primary balance from a surplus to a 0.3% deficit of GDP.
• 2.UBS expects the Monetary Authority of Singapore (MAS) to tighten monetary policy, targeting a USDSGD of 1.24 by year-end 2026.
• 3.The budget aims to rejuvenate the equity market via increased MAS seed funding and the potential use of CPF funds for equity investments.

Table of Contents

• Singapore Budget 2026: Modestly expansionary, with cross-asset impact
• SGD credit to be supported by subdued rates and stable fundamentals
• Positive impact on equities; more measures to support equity capital market ecosystem
• Strengthening the equity capital market ecosystem
• Corporate tax rebates
• Vouchers to support consumption
• Leveraging AI to lift long term profitability
• Absence of property-related measures
• Equity market positioning
• Selection of SGD bonds
• Valuations

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