Singaporean Prime Minister and Finance Minister Lawrence Wong on Thursday unveiled a series of measures in the 2026 financial year budget aimed at boosting artificial intelligence (AI), including business tax deductions, employee training, and free access to advanced AI tools for the public.
“Harnessed well, AI will be a strategic advantage for Singapore. It can help us overcome our structural constraints — our limited natural resources, rapidly ageing population, and tight labor market,” Wong told Parliament.
The government plans to launch new national “AI Missions” to drive AI-led transformation in key sectors of the economy, namely advanced manufacturing, connectivity, finance, and healthcare. A National AI Council will be established, chaired by Wong, to provide strategic direction on these initiatives.
For enterprises, businesses will have the opportunity to claim 400 percent tax deductions on up to 50,000 Singapore dollars of qualifying AI expenses per year for the 2027 and 2028 years of assessment. Tailored support will also be offered to firms seeking to implement AI to enhance their operations.
In response to concerns regarding AI’s impact on jobs, the government will assist workers in acquiring practical AI skills, initially targeting accountancy and legal professionals before expanding to other sectors.
Additionally, the government has partnered with industry to provide AI courses for the public. Wong stated that the course website will be improved to make AI learning pathways clearer and more accessible. Singaporeans who complete selected AI training courses will receive six months of free access to premium AI tools.
“Our advantage does not lie in building the largest frontier models. It lies in deploying AI effectively, responsibly, and at speed,” said Wong.
Singapore has intensified its AI initiatives in recent years, launching its National AI Strategy in 2019, updating it in 2023, and announcing in January an additional 1 billion Singapore dollar investment in AI research and development from 2025 to 2030. This commitment underscores Singapore’s aim to remain at the forefront of the AI landscape.
The 2026 budget also includes initiatives to advance Singapore’s economic strategy, bolster the workforce, expand family support, and ensure safety and sustainability across various sectors.
Singapore’s financial year runs from April 1 to March 31, with public consultations typically starting in December. The finance minister presents the budget in February, introducing the Supply Bill in Parliament, which must be debated, passed, and receive presidential assent before taking effect by March 31.
Earlier this year, a study warned that AI chatbots could pose risks when used for medical advice, highlighting the importance of cautious AI deployment in sensitive areas.
As Singapore looks to harness AI effectively, the government’s new measures and strategies reflect a broader ambition to integrate advanced technologies into its economy, reinforcing its status as a hub for innovation in Southeast Asia.
See also
Vermont’s Tech Chief Mark Combs to Retire; State Seeks Visionary Replacement
South Korea Opens Public Datasets to AI Startups for SME Support Enhancement
Maharashtra Government Invests Rs 22 Lakh in AI Systems for Higher Education Reforms
Albanian Actress Anila Bisha Sues Government Over AI Virtual Minister Image Use
National AI Computing Center Set to Launch on Reclaimed Land in Haenam by 2029
