Navigating Rising Costs with Business Accounts and SME Loans in 2026

The ripple effects of the Middle East conflict on global energy supply have made 2026 one of the more challenging years for Singapore SMEs. Rising electricity, fuel, and import costs are increasing operating expenses, and smaller businesses are feeling the pressure the most.

Government support is one part of the response. A banking partner that helps you manage costs, access capital, and transact efficiently is the other.

What the Government's Support Package Covers

On 29 July 2026, Second Minister for Finance Jeffrey Siow and Senior Minister of State for Trade and Industry Low Yen Ling announced a second support package of approximately S$900 million for Singaporeans and businesses. Combined with the S$1 billion package announced in April, total government support in response to the Middle East situation now amounts to around S$2 billion.

Three measures apply directly to your business:

1. Enhanced Enterprise Financing Scheme (EFS)

From September 2026 to March 2027, the government's risk-share on the EFS-SME Working Capital Loan and EFS-Project Loan increases from 50% to 70%, improving access to financing for eligible local enterprises. The Project Loan is also being expanded to cover domestic projects by local construction companies.

2. SME Cash Grant

Qualifying SMEs receive S$500 for each local employee on their payroll, up to a maximum of S$2,500 per company. Sole proprietorships, partnerships, and limited liability partnerships (LLPs) with at least one local business owner but no local employees also qualify for a flat S$500. Disbursement is in November 2026.

3. Rental Support for Hawker and Market Stallholders

Stallholders in government-managed hawker centres and markets will receive staggered payments between September 2026 and February 2027: S$1,200 per cooked food stall and S$600 per market stall.

Choosing the Right SME Bank in Singapore

Each business has its own unique set of needs. But across our work with business owners, four banking requirements come up consistently, and we recommend making sure your bank can deliver on all of them. Your SME bank should help you:

1. Lower Your Local and International Banking Costs

For all businesses, recurring costs matter, especially when margins are tight. The DBS Business Multi-Currency Account (BMCA) keeps everyday banking costs low: businesses in their first three years enjoy unlimited free FAST and GIRO transfers, while established businesses receive 50 free FAST and 50 free GIRO transactions monthly. With this account, you can also hold and transact in up to 13 major currencies. Additionally, you get the DBS BAC+ Debit Card, which has benefits like zero FX charges, unlimited 1% cashback on B2B transactions, and complimentary corporate liability insurance of up to US$1.65 million.

Exclusive Promo

This National Day, open a new BMCA account by 30 September 2026 and earn S$398 in cash rewards, plus up to S$265 in savings per FX and overseas transfer: 

• S$138 cash for your new account
• S$80 cash when you activate and spend a minimum of S$1,000 on your BAC+ debit card
• Up to S$180 cashback with a minimum spend of S$1,000 per month for the first three months on your BAC+ debit card
• S$15 flat fee for every overseas payment during the offer period
• Up to S$250 in FX savings per transaction on DBS IDEAL during the offer period

T&Cs apply.

2. Access SME Working Capital Loans Quickly

For Singapore SMEs navigating rising energy and import costs, maintaining steady cash flow has never been more important. As a DBS account holder, you can access up to S$50,000 through DBS Quick Finance with no documentation required, covering unexpected costs or short-term gaps without delay.

For larger needs, the DBS SME Working Capital Loan and DBS Business Term Loan offer up to S$500,000. You can also take up a DBS Business Loan alongside your EFS loan to access additional capital when needed. With fixed-rate financing, your monthly repayments stay predictable, helping you plan ahead even as operating costs fluctuate.

Exclusive Promo

This National Day, earn up to S$1,891 in cashback with every approved DBS Business Loan: 

• S$610 per S$120,000 approved (up to S$1,830), credited to your DBS commercial credit card
• S$61 bonus cashback for spending S$6,100 on a new DBS Commercial Card within 60 days

T&Cs apply.

3. Manage Your FX Risk

In a period of exchange rate uncertainty, managing your FX exposure early protects your margins. DBS SecureFX lets you lock in preferred exchange rates up to one month ahead across five key currency pairs: USD/SGD, EUR/SGD, EUR/USD, GBP/SGD, and JPY/SGD. For longer-term planning, DBS FX Online lets you book transactions across over 40 currency pairs up to a year in advance.

4. Grow Your Business Network

As a DBS customer, you gain access to DBS BusinessClass, a platform connecting you to nearly 17,000 business owners and leaders across the region. Alongside networking, it offers insights, resources, and expert support to help you build capabilities over time. For businesses navigating a challenging period, the practical knowledge exchange this network provides can be as valuable as any product feature.

Start Banking Smarter with DBS SME

Government support and the right banking partner work together. Whether you're planning to take out an EFS loan, putting your SME cash grant to work, or looking to reduce your everyday banking costs, your bank should be positioned to help you act on each of these.

If your current banking partner doesn’t measure up, it may be worth considering a switch to DBS.

Open a Business Account with DBS 

Apply for a DBS Business Loan

References:

https://www.mas.gov.sg/publications/macroeconomic-review/2026/volume-xxv-issue-2-apr-2026
https://www.mof.gov.sg/news-resources/newsroom/press-conference-on-second-support-package-in-response-to-the-continuing-middle-east-situation/
https://www.moneysmart.sg/personal-loan/how-inflation-can-benefit-borrowers-ms
https://www.dbs.com.sg/sme/businessclass/articles/choosing-the-right-sme-bank