APAC financial hubs reset for growth: Key budget 2026 takeaways from Singapore and Hong Kong

By Sridhar Nagarajan, Regional CEO, APAC

Singapore and Hong Kong have unveiled Budgets that clearly signal their shared ambition: accelerate growth, fuel innovation, and sharpen global competitiveness while building more resilient, future-ready economies.

To navigate these developments, IQ-EQ has prepared detailed Budget highlight documents capturing the most important tax, regulatory and business measures in both jurisdictions.

Below is a consolidated view of the themes shaping the regional landscape in 2026.

Singapore Budget 2026: Pro-growth with a strong social foundation

AI as a national growth catalyst

AI sits at the heart of Singapore’s economic strategy.

A major shift: AI expenditure will be a qualifying activity under the Enterprise Innovation Scheme (EIS) in Year of Assessments (YAs) 2027 and 2028, enabling 400% tax deductions or allowances on up to S$50,000 per YA. This is a clear signal that embedding AI across the enterprise ecosystem is now a national priority.

Fuel for global expansion

Singapore has doubled down on its position as a springboard to global markets.

Enhancements to the Double Tax Deduction for Internationalisation (DTDi) now cover five additional activities without prior approval, including overseas business development initiatives and production of corporate brochures for overseas distribution.

These changes lower barriers for companies scaling across borders.

Sustainability and digitalisation

Singapore continues to push toward a greener, digital-first economy through measures that encourage:

• Sustainability-linked investments
• Enterprise digital transformation
• Workforce upskilling and capability building

Together, these strengthen long-term competitiveness while advancing climate and productivity goals.

Business cost relief and a “we first” society

To balance economic growth with social resilience, the Budget introduces targeted business relief, including:

• 40% Corporate Income Tax rebate for YA 2026 (capped at S$30,000)
• A guaranteed cash grant of S$1,500 benefit for companies hiring at least one local employee in 2025

Click below for our full summary of the Singapore Budget 2026 highlights:

Singapore Budget 2026 Highlights

Hong Kong Budget 2026/27: Strengthening tax competitiveness and market depth

Individual tax relief

The Hong Kong Budget introduces higher personal allowances and a one-off salaries tax reduction capped at HK$3,000, improving after-tax income for employees, executives and business owners while supporting domestic consumption.

Global minimum tax (Pillar 2) rollout

Hong Kong is advancing its implementation of global minimum tax rules for multinational groups with revenue at or above EUR 750 million, with top-up taxes likely from 2027/28.

Now is the moment for groups to evaluate tax structures, effective tax rates, and compliance readiness.

Funds and family office ecosystem enhancements

To strengthen its wealth and asset management platform, Hong Kong expands:

• Qualifying investment scopes to include digital assets, precious metals, and commodities
• Fund definitions, improving structuring flexibility and tax efficiency

These are timely enhancements for a fast-growing family office sector.

Capital markets reform

Hong Kong is pushing ahead with capital markets reform to reinforce its status as a global listing and trading centre, including:

• Streamlined IPO processes
• Consultation on further listing rule changes
• Exploration of T+1 settlement
• Transition toward a paperless securities market

This suite of measures aims to boost liquidity, competitiveness and operational efficiency.

Innovation and digital economy development

The Budget strengthens Hong Kong’s digital future with measures covering:

• Stablecoin licensing regime implemented; first batch of licences expected in March 2026
• Tax deductions for IP activities
• Support for patent valuation and related innovation initiatives

These developments provide clearer regulatory pathways and strengthen intangible asset strategy planning.

Click below for our full summary of the Hong Kong Budget 2026 highlights:

Hong Kong Budget 2026 Highlights

Key regional takeaways

Across both hubs, several strategic priorities align:

• Innovation as a core growth driver
• Strengthening global competitiveness
• Deepening the wealth and asset management ecosystem
• Building resilience, inclusive economies

Together, Singapore and Hong Kong are setting the pace for APAC’s next phase of financial and economic expansion.

How we can help

If you’d like to understand how these developments may impact your business, investment structures or expansion plans, our team is ready to help you translate policy changes into actionable strategies.

Get in touch today by contacting our Singapore or Hong Kong teams, or by reaching out directly to any of our key contacts listed below.