Budget 2026: S$1 billion boost for promising tech startups and growth-stage companies

SINGAPORE: The government will inject S$1 billion (US$792 million) into the Startup SG Equity scheme to support not just promising tech startups, but also growth-stage companies, Prime Minister Lawrence Wong announced on Thursday (Feb 12).

The move aims to strengthen Singapore’s enterprise ecosystem at a time when firms - particularly those in deep tech - are facing tighter funding conditions globally.

Under Under Startup SG Equity, the government provides initial capital to catalyse private funding for promising Singapore-based tech startups with intellectual property and global market potential.

The scheme has so far focused mainly on early-stage funding.

It will now be expanded in scope to support firms at the growth stage, which often require larger and longer-term funding to scale.

Mr Wong, who is also the finance minister, said in his Budget speech that enterprise funding is a key part of Singapore’s enterprise ecosystem, one that has been strengthened steadily over many years.

“But many firms continue to face challenges at the growth stage,” said Mr Wong.

“This is not unique to Singapore. Globally, growth-stage capital has tightened. As a result, many firms, especially those in deep tech, find it harder to raise the larger and longer-term funding needed to scale.”

Beyond the S$1 billion, the government will adopt a “more systemic approach” to strengthening Singapore’s growth capital ecosystem.

A new workgroup led by National Development Chee Hong Tat will be set up. Mr Chee, who is also deputy chairman of the Monetary Authority of Singapore (MAS), will work closely with the industry to develop strategies to position Singapore as a leading centre for growth capital, Mr Wong said.

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The government will also inject a second S$1.5 billion tranche into the Anchor Fund, which was first established in 2021 to attract and anchor high-quality public listings in Singapore.

Like the initial tranche, the new funding will be structured as a co-investment between the government and Temasek.

“When enterprises are ready to list, we want to see Singapore as their listing venue of choice,” Mr Wong said.

The broader equities market will also be strengthened.

MAS had earlier allocated close to S$4 billion to nine asset managers under the Equity Market Development Programme, which was set up last year to develop Singapore’s fund management industry and increase investor participation in Singapore equities.

To build on the momentum, the programme will be expanded with a S$1.5 billion top-up, said Mr Wong.

In addition, authorities will implement recommendations of the Equities Market Review Group, including streamlining listing rules and requirements to make it easier for high-growth companies to go public.

The Economic Development Board, meanwhile, will have a role to play beyond its focus on multinational enterprises in its investment promotion efforts.

“Going forward, it will step up efforts to attract high-growth companies with the potential to become future industry leaders,” said Mr Wong.

“By anchoring such companies early, we can build new engines of growth and capture greater value for our economy as these enterprises grow and expand from Singapore.”

The prime minister said that Singapore’s comprehensive approach - from nurturing homegrown startups to catalysing private capital and attracting promising global companies - will strengthen the enterprise ecosystem.

“Importantly, this will create more opportunities for Singaporeans to secure good jobs and grow their careers,” he added.