Gov’t rolls out $900m package as Middle East conflict persists

SMEs to receive enhanced financing, cash grants, and rental support.

The government will roll out a second support package worth around $900m to help households and businesses manage higher costs arising from the continuing conflict in the Middle East, Second Minister for Finance Jeffrey Siow announced.

For businesses, the government will temporarily enhance the Enterprise Financing Scheme from September 2026 to March 2027, Senior Minister of State for Trade and Industry Low Yen Ling said.

“We will increase the Government’s risk-share from 50% to 70% for the EFS – SME Working Capital Loan and EFS – Project Loan,” Low said at a joint press conference with Siow.

The ‘Project Loan’, which covers overseas projects, will also be expanded to finance domestic projects by local construction companies.

Active small and medium-sized enterprises (SMEs) with at least one local employee will receive a one-off cash grant of $500 per local worker, capped at $2,500 per company. The grant will be disbursed in November.

Eligible sole proprietorships, partnerships and limited liability partnerships with at least one local business owner but no local employees will receive a flat $500 grant, Low added.

The government will also provide rental support for stallholders operating in markets and hawker centres managed by the government or government-appointed operators.

Cooked-food stalls will receive $1,200 each, whilst market stalls will receive $600. The assistance will be disbursed over six months from September to February 2027.

Siow said global energy prices were expected to remain elevated as shipping through the Persian Gulf continued to face disruption, raising costs of petrol, diesel, electricity, and some imported goods.

He added that businesses exposed to supply disruptions and energy costs had faced greater pressure. “SMEs, in particular, feel these cost pressures more acutely.”

The latest package follows a $1b assistance package announced in April. Together, the two packages amount to around $2b, excluding measures introduced under Budget 2026.

Household measures under the second package include an additional $300 in CDC vouchers, enhanced U-Save rebates and higher ComCare Interim Assistance payments.

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