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Singapore to boost AI adoption with new programs, tax incentives

Singapore announced plans to support AI adoption among businesses in its 2026 budget, including new programs and tax incentives, according to Prime Minister and Finance Minister Lawrence Wong.

The government will launch the Champions of AI initiative, offering tailored support for enterprise transformation and workforce training.

Additionally, the Enterprise Innovation Scheme will be expanded to cover AI-related expenses, with a cap of S$50,000 per year for assessments in 2027 and 2028.

The Productivity Solutions Grant will also be broadened to include more digital and AI-enabled solutions.

Singapore plans to build a larger AI park at one-north to foster collaboration and translate AI ideas into practical applications, building on the existing Lorong AI co-working space.

The Ministry of Trade and Industry will provide further details during the upcoming Committee of Supply 2026.

🔗 Source: The Business Times

🧠 Food for thought

Implications, context, and why it matters.

Singapore’s AI push follows a multi-year national plan

  • A new National Artificial Intelligence Council, chaired by Prime Minister Lawrence Wong, will run the work across agencies 1.
  • The measures carry out Singapore’s National AI Strategy 2.0, launched in 2023 to steer the country toward a global AI hub 2.
  • The business drive rests on S$1 billion over five years from 2025 to 2030 for public AI research on resource-efficient AI plus responsible AI 3.
  • SkillsFuture website (a national platform for training and lifelong learning) has been redesigned to map AI learning routes more clearly 4. Singaporeans who enroll in selected AI training courses will get six months of free access to premium AI tools 4.

The strategy seeks to make Singapore a trusted base for AI deployment

  • Officials say the edge lies in rolling out AI quickly, responsibly, at scale, rather than training the largest frontier AI models 1.
  • Prime Minister Wong said this approach has drawn firms like Google plus Microsoft, both of which run AI centres of excellence in Singapore 1.
  • Governance tools like the AI Verify Testing Framework (a government-backed approach for testing and documenting the behavior of AI systems) help Singapore build trust for developing, testing, deploying AI responsibly 2.
  • Prime Minister Wong said this standing can pull in talent plus capital, while backing local players like DBS Bank, which uses over 2,000 AI models across more than 430 different kinds of applications across the organisation 5.

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