Singapore Bets Big on AI in 2026 Budget, Finance Named Key Sector for Transformation
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Artificial intelligence (AI) took center stage in Singapore's 2026 Budget, with the government announcing a comprehensive national strategy to harness AI as a competitive advantage and accelerate transformation across key sectors, including finance.
Delivering the Budget statement, Prime Minister and Minister for Finance Lawrence Wong unveiled a new set of national "AI Missions" focused on four priority sectors: advanced manufacturing, connectivity, finance, and healthcare. The initiative aims to align research and development, regulatory frameworks, and investment promotion efforts to drive innovation and industry adoption.
As part of the strategy, the government will review existing regulations and introduce regulatory sandboxes to facilitate the testing and deployment of AI solutions. A new National AI Council will also be established, chaired by Prime Minister Wong, to provide strategic direction and oversee implementation across agencies.
The Budget includes measures to accelerate AI adoption among businesses. AI-related expenditures will be recognized as qualifying activities for tax incentives, encouraging companies to integrate AI into their operations and transformation efforts.
In addition to supporting enterprises, the government emphasized workforce readiness. New initiatives will help Singaporeans build AI-related skills, including a refreshed website outlining AI learning pathways. The government also encouraged individuals to proactively leverage widely available AI tools to enhance their digital capabilities.
"Singapore will not be passive in the face of rapid changes around us," Wong said. "We will adapt. We will compete. We will continue to move forward with confidence. By harnessing AI as a strategic advantage, we will shape our own future and secure our place in this changed world."
The AI-focused measures underscore Singapore's commitment to strengthening its position as a leading digital economy and global financial hub amid rapid technological change.
