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Overview 2 May 2026 3 min read

Middle East Support Measures 2026: Enhanced CIT Rebate & EEG Expansion for Singapore Businesses

On 7 April 2026, Singapore's Ministry of Finance announced approximately S$1 billion in additional support measures in response to the Middle East situation. This overview covers the key measures for businesses: the enhanced CIT rebate (50%, S$2,000 cash grant, S$40,000 cap) and the EEG Base Tier expansion to all sectors with a deadline extension to 31 March 2028, while MTI prepares details for newly eligible sectors.

Verified 2 May 2026

What Happened

Rising energy costs and supply chain disruptions linked to the Middle East situation have put pressure on Singapore businesses. On 7 April 2026, the Ministry of Finance announced approximately S$1 billion in additional support measures, building on top of Budget 2026.

These measures focus on two areas most businesses care about: lower taxes (enhanced CIT rebate) and cheaper energy-efficient equipment (expanded EEG).

Enhanced CIT Rebate

The Corporate Income Tax rebate for Year of Assessment 2026 has been increased beyond what was announced in Budget 2026.

Budget 2026Enhanced (7 Apr 2026)
Rebate rate40%50%
Cash grantS$1,500S$2,000
Total benefits capS$30,000S$40,000

You do not need to apply. The enhanced rebate and cash grant will be automatically disbursed from end-April 2026. Make sure your company’s PayNow Corporate is set up to receive the cash grant promptly.

For full details on how the CIT rebate and cash grant work, see our Budget 2026 CIT Rebate Guide.

Enhanced EEG Base Tier

The Energy Efficiency Grant (EEG) Base Tier has been expanded and extended:

  • All sectors now eligible — previously limited to 6 sectors (Construction, Data Centres, Food Services, Maritime, Manufacturing, Retail)
  • Extended to 31 March 2028 — previously 31 March 2027
  • Cap unchanged — still up to S$30,000 for Base Tier

Important: Pre-approved equipment lists currently only exist for the original 6 sectors. If your business is in a newly eligible sector, you will need to wait for MTI to publish the equipment lists and details later in 2026. Businesses in the original 6 sectors can apply now.

For step-by-step application guidance, see our EEG Quick-Start Checklist.

Other Business Measures

The 7 April 2026 package also includes:

  • Government procurement cost-sharing — the government will share the cost of fuel price increases on critical government contracts, helping affected contractors
  • Essential transport services — temporary co-funding for school bus, senior activity centre, and disability transport services to offset higher fuel costs

What Should You Do

  1. CIT rebate: Nothing required — the enhanced rebate and cash grant are automatically disbursed. Ensure your PayNow Corporate is set up so you receive the cash grant without delay.
  2. EEG (original 6 sectors): If your business is in Construction, Data Centres, Food Services, Maritime, Manufacturing, or Retail, you can apply now via the Business Grants Portal.
  3. EEG (newly eligible sectors): Wait for MTI to publish pre-approved equipment lists for your sector. Check back for updates.
  4. Stay updated: Visit singaporebudget.gov.sg/enhanced-support for the latest information.

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