Singapore launches AI support measures, tax breaks in 2026 Budget

Singapore launched a slew of schemes to harness artificial intelligence, including tax breaks for companies and support for workers to learn AI skills.

Presenting the country’s Budget on Thursday, Prime Minister Lawrence Wong announced that Singapore will launch a “national AI council,” which he will chair.

“AI is a powerful tool — but it is still a tool. It must serve our national interests and our people,” he said.

Singapore will also define clear rules for how AI is developed and used to ensure it benefits society safely and responsibly, Wong added.

In terms of measures, Singapore will launch a new “Champions of AI” program to support firms who want to use AI to transform their business. Support will be tailored to each company, and will include enterprise transformation and workforce training.

“As these companies succeed, they will set benchmarks for their industries and inspire others to follow,” Wong said.

The country will also expand its Enterprise Innovation Scheme, which provides businesses with a 400% tax deduction on qualifying expenditures. Such expenditures will be expanded to include AI expenditures, capped at 50,000 Singapore dollars ($39,654) per year for 2027 and 2028.

Wong said that “every Singaporean can take the initiative to learn and pick up AI-related skills,” adding that the country will redesign its Skillsfuture website to make AI learning pathways clearer and easier to access, so that Singaporeans can quickly find courses that match their work needs and proficiency levels.

The Skillsfuture website provides learning opportunities and training support for Singaporeans, who are given credits to sign up for Skillsfuture courses when they turn 25.

But Wong noted that while most AI tools are free at the basic level, access to more advanced models require a paid subscription.

Singapore will then provide Singaporeans who take up selected AI training courses six months of free access to premium AI tools. “This will allow them to practise, experiment, and apply what they have learnt,” he pointed out.

While artificial intelligence is becoming a key driver of Singapore’s digital economy, adoption alone does not guarantee productivity gains, according to Jessica Zhang, senior vice president for APAC at business services provider ADP.

Without job redesign and practical training, the transition to AI risks widening skills gaps and undermining long-term talent development, Zhang added.

As such, she thinks the main challenge will be equipping workers with the skills to work effectively…