$1b in extra help for S’poreans amid Middle East conflict

As part of the support measures, active platform workers, private-hire car drivers and taxi drivers will receive $200 in cash from the end of April. This is to cushion the impact on their earnings, which have been hit by the sharp increase in fuel prices.

Mr Siow acknowledged calls from some MPs to reduce fuel or diesel duties across the board, but said this would be “too blunt an approach” and could be regressive.

He added that the Government also wants to preserve price signals to encourage consumers to use energy more efficiently, and that as an open economy, Singapore should allow fuel prices to reflect market realities.

The Government will also temporarily co-fund cost increases for certain essential transport services so they can continue without disruption. These include transport for school students, seniors, and persons with disabilities.

It will also share the cost increases directly arising from fuel price rises for critical government contracts, where any delay or stoppage would significantly affect the public interest.

These include major government infrastructure projects, such as the Cross Island MRT Line and new HDB Build-To-Order projects. The base tier of the Energy Efficiency Grant, which supports businesses in six sectors by co-funding investments in energy-efficient equipment, will be expanded to all sectors and extended until March 31, 2028.

For businesses, the 40 per cent corporate income tax rebate announced in Budget 2026 will be increased to 50 per cent.

The minimum benefit for a company with at least one local employee will rise from $1,500 to $2,000, while the total benefits cap for each company will be raised from $30,000 to $40,000. Eligible companies will receive the enhanced support from the end of April 2026.

In his Budget speech, Prime Minister and Finance Minister Lawrence Wong also announced enhanced U-Save rebates to help households with their utility expenses.

Eligible Singaporean HDB households will receive 1.5 times the regular U-Save amount, or up to $570, in the financial year 2026.

In April 2026, more than one million Singaporean HDB households will get up to $190 worth of U-Save rebates, which will help defray the increase in utility bills from April to June 2026.

Eligible households will also receive up to $190 in U-Save rebates in July 2026, which will help to defray the much sharper increase in utility bills expected from July to September 2026.

Mr Siow, who is also part of the Homefront Crisis Ministerial Committee addressing challenges arising from the Middle East conflict, said in Parliament that the Government has put together a “substantial first response” to the energy crisis caused by the conflict.

“We have drawer plans, and as events develop, we can put them into action and do more if the situation calls for it,” he said.

To fund these measures, the Government will work within the amount approved in the Supply Act in March and seek Parliament’s approval for the supplementary budget later, he added.

“What Singaporeans can count on is a Government that is well prepared, builds sufficient buffers, anticipates problems and thus is ready and able to respond swiftly with solutions,” he said. “We will always make sure that no Singaporean is left to bear his or her burden alone.”