SINGAPORE, Feb. 12 (Xinhua) -- 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 deductions, employee training, and free access to advanced AI tools for the public.
"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 new set of national "AI Missions" to drive AI-led transformation in key sectors of the economy, namely advanced manufacturing, connectivity, finance, and healthcare, and establish a National AI Council, chaired by Wong, to provide strategic direction.
For enterprises, businesses will be able to claim 400 percent tax deductions on up to 50,000 Singapore dollars of qualifying AI expenses per year for the 2027 and 2028 years of assessment. Tailored support will also be offered to firms seeking to use AI to comprehensively transform their operations.
To address concerns over AI and jobs, the government will help workers acquire practical AI skills, starting with accountancy and legal professionals and gradually expanding to other sectors.
The government has partnered with industry to offer AI courses for the public. Wong said the course website will be improved to make AI learning pathways clearer and easier to access. Singaporeans who take selected AI training courses 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," said Wong.
Singapore has stepped up its AI efforts in recent years, launching its 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 covers initiatives to advance Singapore's economic strategy, strengthen the workforce, expand family support, and ensure safety and sustainability.
Singapore's financial year runs from April 1 to March 31, with public consultations typically beginning in December. In February, the finance minister presents the budget and introduces the Supply Bill in Parliament, which must be debated, passed, and receive presidential assent before taking effect by March 31. ■