Trade bodies press for subsidies, staffing and rent safeguards before Budget
Singapore’s main business groups have delivered a familiar yet urgent wishlist ahead of the Feb 12 Budget. They call for cost relief, access to more workers – including foreign hires – and checks on sharp rent hikes by landlords. Their papers also push longer-horizon moves such as an “IP financing hub” to help firms borrow against patents and other intangible assets, plus targeted schemes for seniors and foreign-talent integration. The submissions closed on Jan 12 under the Finance Ministry’s consultation.
What companies want this year
Across sectors, towkays asked for subsidies to defray operating costs, better manpower access, and measures to temper rent escalation in malls and industrial sites. Trade bodies also bundled proposals on decarbonisation incentives, overseas expansion support, and consolidation pathways for weaker firms so capital and talent can move to stronger players. These asks echo past cycles but reflect tighter margins and fast tech shifts.
SBF and ASME outline a bigger playbook
The Singapore Business Federation and Association of Small & Medium Enterprises (ASME) proposed developing Singapore into an IP financing hub, alongside AI adoption grants and tailored SME assistance. They also back incentives to hire senior workers and measures to better integrate complementary foreign talent. Media briefings and papers list a central digital IP registry, enhancements to the PSG, and tools to help firms scale abroad. In short, the push mixes near-term relief with moves to lift productivity and growth.
Retailers’ pain points and the rent debate
The Singapore Retailers Association highlights costs, manpower shortages and competitive pressure from overseas and online rivals. Retail groups seek sustained support and clearer guardrails on rent increases, arguing smaller chains lack bargaining power. Their messages, including remarks by SRA president Ernie Koh, underline a split focus: immediate relief for the next two to three years, and strategic upgrades for the longer term. (“Rent control” here refers to policy tools that slow or cap landlord increases; business groups are asking for safeguards rather than permanent hard caps.)
Manpower: seniors, skills and foreign hires
Employer bodies want incentives to retain and hire senior workers, plus smoother access to skilled foreign staff to plug gaps while locals upskill. The Singapore National Employers Federation has urged measures to manage manpower costs while lifting productivity. In parallel, SBF–PwC proposals include “fractional work” options and training support to spread AI and digital tools across SMEs. The thrust is to protect competitiveness without freezing labour market renewal.
Overseas push and industry consolidation
Given the home market’s size, trade chambers want stronger help for firms to enter regional markets and for orderly consolidation where needed. That includes export development, financing, and guidance for mergers so assets and workers shift to better-performing businesses. An IP financing hub and carbon-market tools are pitched as backbone enablers for innovation-led growth beyond Singapore.
What happens next
Budget Day falls on Feb 12. Businesses will watch for cost relief, manpower levers, and any move on rent safeguards. They will also track whether the Government backs the IP financing hub and AI booster ideas. Trade leaders say apex chambers set the longer-term direction while industry associations push for immediate fixes – a division of labour that shapes every Budget season.
In sum, the 2026 wishlist marries short-term cushioning with structural bets: lower costs now, better skills and hiring flexibility soon, and deeper capital tools for innovation. Whether the final package delivers on both tracks will determine how fast SMEs adapt to technological change and tougher regional competition.
