Singapore is accelerating its artificial intelligence strategy with sweeping measures aimed at reshaping businesses, upgrading worker skills, and strengthening financial markets.
Presenting the national Budget on Thursday, Prime Minister Lawrence Wong announced a national AI council, new tax incentives, workforce programmes, and expanded access to AI tools.
The initiatives reflect a coordinated effort to embed artificial intelligence across industries while aligning it with national priorities.
Alongside these technology measures, Singapore also introduced capital market reforms and funding injections to boost its stock market and reinforce its position as a global financial centre.
National AI council and governance rules
Singapore will establish a national AI council chaired by Prime Minister Lawrence Wong to guide the country’s artificial intelligence direction.
The council will oversee how AI is developed and deployed, ensuring it aligns with national priorities and societal interests.
The government also plans to introduce clearer governance standards to define how companies develop and use artificial intelligence, while ensuring safety, accountability, and responsible implementation across sectors.
The move reflects Singapore’s effort to maintain oversight as AI adoption accelerates globally, particularly as the technology expands into industries such as finance, healthcare, and logistics.
Tax breaks and business AI transformation
To accelerate adoption among businesses, Singapore will launch a Champions of AI programme designed to help companies integrate artificial intelligence into operations.
Support will be tailored to individual firms and include enterprise transformation and workforce training.
The government will also expand its Enterprise Innovation Scheme, which provides a 400% tax deduction on qualifying business expenditures.
Under the updated rules, companies can claim deductions for AI-related spending, with qualifying expenses capped at 50,000 Singapore dollars per year in 2027 and 2028.
These incentives aim to reduce adoption costs and encourage companies to integrate artificial intelligence into core operations.
Workforce training and free AI tools access
Singapore is also targeting workforce readiness by expanding its Skillsfuture initiative.
The government will redesign the Skillsfuture website to make artificial intelligence learning pathways easier to access and navigate.
The platform provides credits to Singaporeans aged 25 and above to enrol in training programmes.
To support deeper learning, Singapore will offer six months of free access to premium AI tools for individuals enrolled in selected training courses.
While many basic AI tools remain free, advanced models typically require paid subscriptions.
This measure is designed to ensure workers can apply and experiment with artificial intelligence tools, strengthening skills and preparing them for AI-driven workplaces.
Stock market funding and listing reforms
Beyond AI, Singapore announced additional financial market support, including a 1.5 billion Singapore dollar injection into the Financial Sector Development Fund.
Established in 1999, the fund provides grants to strengthen the country’s financial services ecosystem.
This follows the government’s earlier 5 billion Singapore dollar equity market development programme launched in 2025.
The initiative has already allocated 4 billion Singapore dollars to nine asset managers, with the remaining funds expected to be deployed in the second quarter of 2026.
The programme has helped support the Straits Times Index, which rose 22.67% in 2025, marking its strongest annual performance since 2009.
Singapore is also working on reforms, including simplifying listing requirements and building a dual-listing bridge between the Singapore Exchange and Nasdaq to help high-growth companies raise capital and expand internationally.
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