Budget 2026: Singapore to inject S$1 billion into startup SG Equity to boost growth-stage firms

SINGAPORE: The Singapore government will inject S$1 billion (US$792 million) into the Startup SG Equity scheme to strengthen the nation’s enterprise ecosystem, Prime Minister Lawrence Wong announced during his Budget speech on 12 February.

The enhanced funding aims to support not only promising early-stage technology startups but also growth-stage companies, which often require significantly larger and longer-term capital to scale.

Under Startup SG Equity, the government co-invests alongside private investors to catalyse funding for Singapore-based tech startups with intellectual property and global market potential. Previously, the scheme focused mainly on early-stage funding.

Mr Wong, who is also Singapore’s Finance Minister, acknowledged that while enterprise funding has steadily improved over the years, many firms still face difficulties once they reach the growth stage.

“Globally, growth-stage capital has tightened,” he said. “As a result, many firms, especially those in deep tech, find it harder to raise the larger and longer-term funding needed to scale.”

New Workgroup to Strengthen Growth Capital Ecosystem

Beyond the S$1 billion (US$792 million) injection, the government will adopt what Mr Wong described as a “more systemic approach” to strengthening Singapore’s growth capital ecosystem.

A new workgroup will be formed, led by National Development Minister Chee Hong Tat, who is also Deputy Chairman of the Monetary Authority of Singapore (MAS).

The group will collaborate closely with industry stakeholders to develop strategies aimed at positioning Singapore as a leading global centre for growth capital.

S$1.5 Billion More for Anchor Fund

In addition, the government will inject a second tranche of S$1.5 billion (US$1.19 billion) into the Anchor Fund.

The Anchor Fund, first established in 2021, was designed 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.

Top-Up for Equity Market Development Programme

The broader equities market will also receive a boost.

MAS had previously allocated close to S$4 billion (US$3.17 billion) to nine asset managers under the Equity Market Development Programme, launched last year to strengthen Singapore’s fund management industry and increase investor participation in local equities.

To build on this momentum, the programme will receive an additional S$1.5 billion (US$1.19 billion) top-up.

Authorities will also implement recommendations from the Equities Market Review Group, including streamlining listing requirements to make it easier for high-growth companies to go public.

Attracting Future Industry Leaders

The Economic Development Board (EDB) will expand its role beyond attracting multinational corporations.

Going forward, EDB will intensify efforts to attract high-growth companies with the potential to become future industry leaders.

“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,” Mr Wong said.

Strengthening Jobs and Career Opportunities

Mr Wong emphasised that Singapore’s comprehensive approach — from nurturing homegrown startups and catalysing private capital to attracting promising global firms — is designed to strengthen the overall enterprise ecosystem.

Importantly, he added, the initiatives aim to create more opportunities for Singaporeans.

“This will create more opportunities for Singaporeans to secure good jobs and grow their careers,” he said.