By Alimat Aliyeva

Singapore’s 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 incentives, employee training programs, and free public access to advanced AI tools, AzerNEWS reports, citing foreign media.

“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 will launch a set of national “AI Missions” to drive AI-led transformation across key sectors, including advanced manufacturing, connectivity, finance, and healthcare. Wong will also chair a new National AI Council, tasked with providing strategic direction for the country’s AI initiatives.

For businesses, companies will be able to claim 400% tax deductions on up to 50,000 Singapore dollars of qualifying AI expenses per year for the 2027 and 2028 assessment years. Tailored support will also be provided to firms seeking to use AI to transform operations comprehensively.

To address concerns about AI and employment, the government will help workers acquire practical AI skills, starting with professionals in accountancy and law and gradually expanding to other sectors. Partnerships with industry will offer AI courses for the public, and the course website will be upgraded to make AI learning pathways clearer and easier to navigate. Singaporeans who complete selected AI training programs will also 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,” Wong said.

Singapore has intensified its AI efforts in recent years, launching the 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.

The 2026 budget also includes measures to advance Singapore’s economic strategy, strengthen the workforce, expand family support, and ensure sustainability and public safety.

Singapore’s financial year runs from April 1 to March 31. Public consultations usually begin in December, followed by the finance minister presenting the budget and Supply Bill in Parliament in February. The bill must be debated, passed, and receive presidential assent before taking effect by March 31.

Analysts say Singapore’s approach emphasizes practical AI deployment rather than purely chasing cutting-edge research, positioning the city-state as a global hub for applied AI solutions in both business and public services.