Singapore launches AI support measures, tax breaks in 2026 Budget

Singapore has unveiled a comprehensive set of measures to promote artificial intelligence adoption in its 2026 Budget, with initiatives spanning tax incentives, business support programs, and workforce training. Prime Minister Lawrence Wong announced the launch of a national AI council, which he will chair, aimed at guiding the responsible development and use of AI to benefit society.

A centerpiece of the Budget is the “Champions of AI” program, designed to support companies seeking to transform their businesses using AI. The program will offer tailored guidance, including enterprise transformation and workforce training. Companies participating in the program are expected to set benchmarks for their industries, inspiring broader AI adoption.

Singapore is also expanding its Enterprise Innovation Scheme, which provides businesses with a 400% tax deduction on qualifying expenditures. The expansion will include AI-related expenditures, capped at SG$50,000 ($39,654) per year for 2027 and 2028.

To equip citizens with AI skills, the government will revamp its Skillsfuture website to provide clearer learning pathways. Singaporeans taking selected AI courses will also receive six months of free access to premium AI tools, enabling practical application of their newly acquired knowledge.

Separately, the government announced a SG$1.5 billion ($1.18 billion) injection into the stock market via the Financial Sector Development Fund, following a SG$5 billion boost in 2025 under the Equity Market Development Program. Additional measures will streamline listing rules and establish a dual-listing bridge connecting SGX and Nasdaq, aiming to enhance Singapore’s public equities market.

Wong emphasized that while AI is a powerful tool, it must serve national interests and citizens’ needs, highlighting Singapore’s commitment to balancing innovation with responsible oversight.