Cash grants, enhanced loan scheme part of new S$900m package to help firms manage cashflow pressures

The April tranche of support measures included bringing forward the 2027 disbursal of Community Development Council (CDC) vouchers to June 2026, as well as enhancing corporate income tax rebates and the Cost-of-Living special payment announced in Budget 2026.

With the second package, the total government support amounts to around S$2 billion, adding on to other measures provided in this year’s government budget.

“For funding, we are expecting at the moment for the ministries and agencies to work within what has already been approved under the Supply Act,” said Mr Siow, adding that a supplementary budget will be sought if needed.

He added that the priority for the April support package was to respond to the situation as quickly as possible to help businesses adjust to the sudden shock.

For the second package, there is an opportunity to be more focused and targeted on companies that are being affected by supply chain disruptions and energy costs, and on smaller companies that have less buffer.

“I think the key is for the government to be responsive to feedback and responsive to changes in the global environment, and we want to be able to do so if there is a need,” he said.

SUPPORT MEASURES FOR BUSINESSES

Senior Minister of State for Trade and Industry Low Yen Ling, who was also at the press conference, said the government understands that businesses are concerned about higher operating costs and cashflow.

“We aim to help them better maintain their costs in the near term, while at the same time giving them the support they need to make business adjustments for the long term,” she said.