The semi-global output regulation problem of multi-variable discrete-time singular linear systems with input saturation is investigated in this paper. A composite nonlinear feedback control law is constructed by using a low gain feedback technique for semi-global stabilisation of discrete-time singular linear systems with input saturation. The sufficient solvability conditions of the semi-global output regulation problem by composite nonlinear feedback control are established. When the composite nonlinear feedback control law is reduced to a linear control law, the solvability conditions are an exact discrete-time counterpart of the semi-global output regulation problem of continuous-time singular linear systems. With the extra control freedom of the nonlinear part in the composite nonlinear feedback control law, the transient performance of the closed-loop system can be improved by carefully choosing the linear feedback gain and the nonlinear feedback gain. The design procedure of the composite nonlinear feedback control law and the improvement of the transient performance are illustrated by a numerical example.