Minister Jeffrey Siow Unveils Emergency Co-Funding and Tax Rebates to Shield Singapore Businesses From Middle East Conflict

Acting Minister Jeffrey Siow announces tax rebate hikes and transport co-funding to help Singaporean businesses survive rising costs from the Iran conflict.

By: AXL Media

Published: Apr 8, 2026, 8:54 AM EDT

Source: Information for this report was sourced from Channel News Asia

Emergency Subsidies for Critical Public Transit

The Singapore government has initiated a temporary co-funding program for essential bus services to mitigate the impact of the Middle East conflict on local commuters. Acting Minister for Transport Jeffrey Siow announced on Tuesday that these subsidies will specifically target services for school students, senior citizens, and persons with disabilities. By cushioning the blow of rising fuel costs, the government intends to maintain these vital transit links without disruption, ensuring that the most vulnerable segments of the population remain insulated from the immediate volatility of global energy markets.

Enhanced Fiscal Relief for Struggling Enterprises

In a direct response to the surge in operating costs for small- and medium-sized enterprises (SMEs), the Ministry of Finance is boosting the corporate income tax rebate for the 2026 Year of Assessment. Minister Siow confirmed that the rebate will increase from 40 per cent to 50 per cent, with the total benefit cap per company rising to S$40,000. For firms employing at least one local worker, the minimum benefit has also been adjusted upward to S$2,000. These enhancements are scheduled for rapid disbursement, with funds expected to reach businesses as early as late April to provide immediate liquidity.

Expanding Energy Efficiency Grants Across All Sectors

To foster long-term resilience against volatile energy prices, the government is extending the Energy Efficiency Grant to all economic sectors. Previously limited to six designated industries including manufacturing and retail, the grant will now allow any business to apply for subsidies to purchase energy-saving equipment through March 2028. Minister Siow emphasized that investing in efficient technology is the most effective way for businesses to lower their structural operating costs and reduce their exposure to external geopolitical shocks that affect fuel and electricity pricing.