Singapore launches AI support measures, tax breaks in 2026 Budget

In an effort to harness the potential of artificial intelligence, Singapore has rolled out a series of initiatives as part of its 2026 Budget. Prime Minister Lawrence Wong announced these measures during his presentation, highlighting the establishment of a 'national AI council' that he will lead. Wong emphasized the importance of AI as a tool that should align with national interests and benefit the populace. Among the new initiatives is the 'Champions of AI' program, designed to assist companies in integrating AI into their operations. This tailored support will include enterprise transformation strategies and workforce training aimed at empowering businesses to lead their industries and motivate others to adopt similar innovations. Furthermore, the government is expanding the Enterprise Innovation Scheme, which now offers a 400% tax deduction on qualifying AI-related expenditures, limited to 50,000 Singapore dollars ($39,654) annually for the years 2027 and 2028. Wong encouraged all Singaporeans to seize the opportunity to learn AI skills, announcing enhancements to the Skillsfuture website to facilitate easier access to AI training resources. In a bid to enhance practical learning, the government will provide six months of complimentary access to premium AI tools for those who enroll in selected AI courses. Wong noted that while basic AI tools are often free, advanced features typically require a subscription, making this initiative particularly beneficial for learners. In addition to AI support, Wong revealed plans for a significant boost to the financial sector, with an injection of 1.5 billion Singapore dollars ($1.18 billion) into the Financial Sector Development Fund. This fund, established in 1999, aims to foster growth within Singapore's financial services sector and enhance its standing as a financial hub. This announcement follows a previous commitment of 5 billion Singapore dollars for equity market development, which has already contributed to a substantial rise in the Straits Times Index. Wong also indicated that the government would consider further measures to simplify listing procedures and create a dual-listing pathway between the SGX and Nasdaq, enhancing opportunities for high-growth companies. These comprehensive initiatives signal Singapore's commitment to embracing AI and strengthening its economic landscape, ensuring that both businesses and individuals are well-equipped for the future.