Nearly $1b in extra help for S’poreans amid rising costs, Govt to do more if needed: Jeffrey Siow
Chin Soo Fang
The Straits Times
April 7, 2026
Singaporeans will get $500 in CDC vouchers half a year early – in June 2026 – to help them manage cost increases expected to result from the Middle East conflict.
These vouchers were supposed to have been disbursed in January 2027 and will be valid until December that year.
The Cost-of-Living Special Payment will also go up by $200 for all eligible Singaporeans – that is, those with an assessable income of up to $100,000 and who do not own more than one property.
About 2.4 million Singaporeans will now get between $400 and $600 in cash in September 2026.
Announcing these and other support measures in Parliament on April 7, Acting Transport Minister Jeffrey Siow noted that petrol and diesel prices have risen sharply as global oil prices soared, and are likely to remain elevated for some time.
Singapore will also have to brace itself for the full impact of the Middle East conflict on the prices of goods such as electricity and imported food, said Mr Siow, who is also Senior Minister of State for Finance.
“We cannot predict how exactly events will unfold, or when the conflict will end,” he added. “What we do know is that Singaporeans are already feeling some of the effects on the ground...The Government is not waiting to act.”
Nearly $1 billion has been set aside to help those most affected by price increases, as well as to provide broader support for households and businesses. This is on top of the $155 billion previously committed in Budget 2026, which was Singapore’s largest budget on record, Mr Siow said.
The United States and Israel had launched coordinated airstrikes on Iran 16 days after Singapore’s Feb 12 Budget, triggering a broader regional conflict. In response, Iran disrupted traffic through the Strait of Hormuz - a key route for about a fifth of global oil and liquefied natural gas flows - contributing to surging oil prices and market volatility.
As part of support measures, active platform workers, private hire car drivers and taxi drivers will get $200 in cash from the end of April.
This is to cushion the impact on their earnings, which have been hit by the sharp increase in fuel prices.
Mr Siow acknowledged calls from some MPs to reduce fuel or diesel duties across the board, but said this would be “too blunt an approach” and could be regressive.
He added that the Government also wants to preserve the price signals for consumers to use energy more efficiently, and that as an open economy, fuel prices should reflect market realities.
The Government will also temporarily co-fund cost increases for certain essential transport services so they can continue without disruption. These include transport for school students, seniors, and persons with disabilities.
It will also share the cost increases directly arising from fuel price increases for critical Government contracts, where any delay or stoppages would significantly affect the public interest.
These includes major government infrastructure projects, such as the Cross Island MRT Line, or new HDB Build-To-Order projects.
The basic tier for the Energy Efficiency Grant, which supports businesses in six sectors by co-funding investments in energy-efficient equipment, will be expanded to all sectors and extended to March 31 in 2028.
For businesses, the 40% corporate income tax rebate announced at Budget 2026 will be increased to 50%.
The minimum benefit that a company with at least one local employee will receive will be raised from $1,500 to $2,000, while the total benefits cap for each company will be raised from $30,000 to $40,000. Eligible companies will receive the enhanced support from end-April 2026.
In his Budget speech, Prime Minister and Finance Minister Lawrence Wong had also announced enhanced U-Save rebates to help households with their utilities expenses. Eligible Singaporean HDB households will receive 1.5 times the regular amount of U-Save rebates, or up to $570, in Financial Year 2026.
In April 2026, more than 1 million Singaporean HDB households will get up to $190 worth of U-Save rebates which will help to defray the increase in utility bills from April to June 2026. Eligible households will also receive up to $190 worth of U-Save rebates in July 2026. These rebates will help to defray the much sharper increase in households’ utility bills expected from July to September 2026.
Mr Siow, who is also part of the Homefront Crisis Management Committee to address challenges arising from the Middle East conflict, said in Parliament that the Government has put together a “substantial first response” to the energy crisis caused by the conflict.
“We have drawer plans, and as events develop, we can put them into action and do more if the situation calls for it,” he said.
To fund these measures, the Government will work within the amount approved in the Supply Act last month, and seek Parliament’s approval for the supplementary budget later, he added.
“What Singaporeans can count on is a Government that is well-prepared, builds sufficient buffers, anticipates problems and thus is ready and able to respond swiftly with solutions,” he said. “We will always make sure that no Singaporean is left to bear his or her burden alone.”
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