Budget grants won't offset expansion risks, says analysts

KPMG’s Yong Jiahao said geopolitical tensions are raising the cost of going global.

Singapore is lowering financial barriers to overseas expansion, but companies still face capital discipline, talent deployment, and geopolitical risks, according to industry experts.

In his Budget 2026 speech, Prime Minister Lawrence Wong said the government is enhancing grant schemes for companies looking to go abroad.

“The message is clear – businesses are being encouraged to look beyond domestic growth and take a more deliberate approach towards international expansion,” said Yong Jiahao, Partner, Shipping, Tax, IGH & Manufacturing, Tax at KPMG in Singapore

Yong noted that the enhanced support reflects higher risks and costs linked to overseas expansion amidst ongoing geopolitical tensions and evolving trade and customs dynamics.

Meanwhile, improvements to the Market Readiness Assistance grant, higher support levels, and an increased cap under the Double Tax Deduction for Internationalisation scheme are expected to ease near-term pressures, he added.

However, internationalisation alone is not about market access, financing, or tax incentives, said Ben Neumann, Partner, APAC Remote Work Leader and Singapore Leader at Vialto Partners. “It is also fundamentally a workforce strategy decision.”

“Encouraging more Singaporeans to gain overseas experience will be critical, particularly as organisations based in Singapore increasingly require leaders with global exposure and on-the-ground understanding,” Neumann said.

He added that international assignments should not be viewed purely as compliance or cost considerations, but as long-term investments in leadership capability and organisational resilience.

On the other hand, Choco UP CEO and Founder Percy Hung stressed that cross-border growth is not a new ambition but a commercial necessity. “Meaningful scale cannot come from the domestic market alone.”

Still, the CEO cautioned that cost remains a key challenge.

“International growth stretches working capital, lengthens receivables cycles and increases operational risk,” he said, “Startups, therefore, need access to flexible capital that grows alongside revenue.”

Whilst venture capital remains important, Hung added that alternative funding models such as revenue-based financing can help founders scale ‘without immediate equity dilution’.