Singapore is doubling down on artificial intelligence and capital markets to bolster its economic future, unveiling a suite of initiatives aimed at cementing its position as a regional powerhouse. Prime Minister Lawrence Wong announced a series of measures designed to accelerate AI adoption, foster innovation, and deepen the country’s financial ecosystem.
Central to these efforts is the establishment of a “national AI council,” which Wong will personally chair. This body is tasked with guiding the responsible development and deployment of AI technologies, ensuring they align with Singapore’s national interests and benefit its citizens. “AI is a powerful tool — but it is still a tool. It must serve our national interests and our people,” Wong stated. The council will also focus on defining clear ethical guidelines and regulatory frameworks to promote safe and beneficial AI integration across society.
To drive corporate AI adoption, Singapore is launching the “Champions of AI” program. This initiative will provide tailored support to companies seeking to leverage AI for business transformation, encompassing enterprise strategy and workforce upskilling. The aim is to cultivate AI leaders who can inspire broader industry adoption.
Further incentivizing AI investment, Singapore is enhancing its Enterprise Innovation Scheme. This program offers a significant tax deduction of 400% on qualifying expenditures, which will now include AI-related investments, up to a cap of S$50,000 per year for 2027 and 2028.
Recognizing the critical role of human capital, Singapore is also revamping its SkillsFuture digital platform. This will create clearer and more accessible AI learning pathways, enabling citizens to quickly identify and enroll in courses aligned with their career needs and skill levels. In a move to democratize access to advanced AI tools, individuals completing selected AI training courses will receive six months of complimentary access to premium AI platforms. This practical exposure is intended to accelerate learning and application.
However, experts caution that technology adoption alone is insufficient. Jessica Zhang, senior vice president for APAC at business services provider ADP, emphasizes the importance of integrating AI with job redesign and practical training. “Without job redesign and practical training, the transition to AI risks widening skills gaps and undermining long-term talent development,” she noted. Zhang believes the primary challenge lies in equipping the workforce with the skills to collaborate effectively with AI, rather than merely introducing new tools. “Accessible learning pathways, regular exposure to AI, and targeted upskilling that strengthens critical thinking, data literacy, and communication capabilities are likely to deliver greater impact than broad-based training alone,” she added.
In parallel to its AI push, Singapore is injecting an additional S$1.5 billion into its Financial Sector Development Fund (FSDF). This capital infusion aims to further develop the nation’s fund management industry and bolster its stock market. The FSDF, established in 1999, provides grants to financial sector firms to promote Singapore as a global financial hub.
This latest investment follows a S$5 billion injection announced in 2025 under the Equity Market Development Program (EMDP), which has been credited with contributing to the robust performance of the Straits Times Index (STI) in 2025, which saw a gain of 22.67%. The remaining EMDP funds are slated for deployment in the second quarter of 2026.
The government is also exploring measures to streamline listing rules and requirements, making it easier for high-growth companies to go public on the Singapore Exchange (SGX). Discussions are also underway for a potential dual-listing bridge connecting the SGX and Nasdaq, a move intended to enhance market depth and provide more avenues for enterprise growth. Klenn Yeo, Private Tax leader at Deloitte Singapore, anticipates that the additional S$1.5 billion will “turbo-charge liquidity in Singapore’s equities market” and expects Southeast Asia’s high-growth companies to increasingly consider Singapore for their listing.
Looking at its fiscal outlook, Singapore projects a surplus of S$8.5 billion for the 2026 financial year, a decrease from the S$15.1 billion surplus recorded in FY2025. Wong attributed the higher FY2025 surplus to stronger-than-anticipated economic performance, increased corporate tax collections, and robust revenue from asset-related collections, such as vehicle and property taxes.
Chua Hak Bin, regional co-head of research at Maybank Investment Banking Group, described the fiscal surplus as “prudent,” suggesting the administration’s desire to maintain financial flexibility in its first year of the electoral term. Singapore’s constitution mandates a balanced budget over each government’s term and requires presidential approval for accessing past reserves. The nation has historically drawn on its reserves only during significant economic downturns, such as the 2008 global financial crisis and the Covid-19 pandemic. Chua anticipates that the actual FY2026 surplus will likely exceed projections, given Singapore’s typically conservative revenue forecasting.
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