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| Source: Singapore Budget website. Infographic on harnessing AI as a strategic advantage. |
"AI is a powerful tool — but it is still a tool. It must serve our national interests and our people. We will define how AI is developed and used in Singapore. We will set clear rules to ensure it is applied responsibly and safely. And we will ensure that its benefits are shared widely across society," he said.
Eileen Chua, MD, SAP Singapore said: "The next evolution of Singapore’s AI strategy, as unveiled in (last week's) Budget announcement, rightly focuses on execution at scale. Recent SAP research
revealed that many Singapore organisations are already seeing tangible
returns through their AI investments today. Singapore firms have
invested an average of S$18.9 million in AI over the past year,
generating an average return on AI investment of 16%— with expectations
this could rise to 29% within two years.
"This illustrates
that AI is already moving beyond concept into business impact.
Government support that enables clear objectives, regulated sandboxes
and coordinated industry missions will help enterprises accelerate that
transition from early returns to sustained value."
Rob Newell, SVP and GM, APJ, New Relic, commented that the Budget’s national AI push underscores the Singapore government’s continued commitment to accelerating trusted AI adoption. "For Singapore organisations, scaling AI comes at a pivotal moment. As economic uncertainty intensifies and cost discipline becomes paramount, many businesses are confronting the reality that AI tools are expensive to operate and that the costs of building and scaling AI-enabled capabilities can be difficult to predict," he said.
"Success will depend on adopting AI in a way that delivers clear commercial value while maintaining tight control over operational expenditure."
"AI is an irreversible force that unlocks new capabilities and redefines how organisations compete. Singapore’s ambitions in AI are bold and inspiring but realising them will require businesses and individuals to embrace both the opportunities and the risks of AI, and to act decisively.
"By using AI to enhance human intelligence and productivity, while staying anchored in the core values of trust, creativity and empathy, organisations can create enduring value and cement Singapore’s global leadership in innovation," said David Nguyen, FPT Software Senior VP, FPT Asia Pacific CEO, FPT Corporation.
AI Missions
Wong announced national AI Missions to drive AI-led transformation in key sectors of the economy, overseen by a National AI Council that he will chair. The Missions are focused on advanced manufacturing, connectivity, finance, and healthcare, and anchored in clear objectives as well as tangible outcomes.
"Delivering this will require us to work differently. We will review regulations and create sandboxes, so that companies can test AI innovations safely and responsibly. Within the government, we will better align our R&D, regulatory, and investment promotion efforts — so that agencies act in concert and pull in the same direction," Wong said.
“The launch of Singapore’s National AI Council marks an important
step in accelerating AI adoption while ensuring it is deployed safely
and responsibly. As organisations increasingly embed AI into operations,
identity security must evolve alongside it," said Eric Kong, GVP, ASEAN
at SailPoint.
"Machine identities, including AI agents, applications, and automated systems, now outnumber human users across most enterprises,
significantly expanding the attack surface and the need for stronger
governance. Static, human-centric identity frameworks are no longer
sufficient to manage autonomous systems operating at machine speed.
"This is why identity security must shift towards an adaptive model
that continuously evaluates and governs access across every human,
machine, and AI interaction. As Singapore advances its national AI
strategy, establishing identity security as a foundational control layer
will be critical to enabling trusted AI adoption while maintaining
accountability, compliance, and cyber resilience.”
"The establishment of the National AI Council strengthens coordination across technological innovation, industry expertise, and public sector regulation, ensuring Singapore’s AI transformation is implemented cohesively and responsibly. In addition, expanding access to AI tools and training further lowers barriers to practical capability building," said Megan Hughes, MD & VP JAPAC, HubSpot.
"When coordination and capability come together, AI can move beyond experimentation and into everyday workflows. By handing off repeatable work to AI agents, human teams can reclaim the bandwidth to focus on higher value tasks like strategic oversight, creativity, and customer relationships. This is how Singapore builds a growth engine where technology multiplies, rather than replaces, human ingenuity."
Adeline Liew, Country Business Leader, Singapore, Alcatel-Lucent Enterprise also commented on the National AI Council. "As Singapore accelerates its ambition to lead in the global AI economy, Budget 2026 marks a decisive shift from aspiration to execution. The establishment of the National AI Council, chaired by Lawrence Wong, reinforces that AI-led transformation is now a national priority central to economic competitiveness and public sector modernisation," she said.
"As national investment in AI continues to expand, competitive advantage will increasingly favour organisations that have built a resilient and scalable digital foundation. Achieving the ambitions set by the National AI Council will require not only innovation at the application layer, but also modernisation at the infrastructure layer," Liew added.
Champions of AI
Wong also introduced the Champions of AI programme, which will provide tailored support for firms which want to use AI to transform their business. "For AI to truly transform our economy, companies must also adopt it comprehensively. Many firms say they are using AI. But end-to-end transformation with AI is very demanding. It requires organising data, rebuilding systems, redesigning processes and jobs, and retraining workers. Even the major global companies are grappling with this. But those that succeed will gain a decisive competitive advantage," he explained.
"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."
Chua said the Champions of AI and national AI Missions programmes are particularly significant, and align with SAP's ongoing efforts to enhance sector-specific implementation of AI applications in the real world. "Successful end-to-end AI transformation demands clean data foundations, modern cloud architectures, redesigned workflows and workforce enablement. Organisations that align these elements will not only improve productivity, but fundamentally increase resilience and responsiveness," she said.
Manik Bhandari, Co-Chair of the SGTech AI, Cloud & Data Chapter, said that SGTech views Champions of AI as catalysts for meaningful, enterprise‑level AI adoption across Singapore. "Its emphasis on awareness-building and foundational capability is valuable, but true transformation requires organisations to move from understanding AI to deploying it in practical and measurable ways. For this to happen, the programme must be supported by sustained structures that guide implementation, track progress, and help enterprises overcome real‑world deployment challenges," he said.
"AI Champions must be empowered to drive genuine internal transformation. This means the mandate, influence and capability to redesign workflows, identify high‑value use cases, and champion practical, scalable AI solutions within their organisations."
"AI adoption in Singapore isn’t being slowed by a lack of ambition, but by structural hurdles like the lack of a reliable data foundation. Digitalising businesses will be encouraged by the Champions of AI programme, which offers the tailored support needed to close operational gaps like data integration. We’ve seen the importance of this reflected in HubSpot’s 2025 Singapore State of Business Growth Report, where local organisations with fully-integrated systems are 10x more likely to report outperforming their peers. A unified data foundation provides the context that AI needs to deliver outcomes that leaders can stand behind," said Hughes.
"Looking ahead, competitive advantage in Singapore's next decade will be defined not just by speed, but by how effectively organisations embed AI into core operations. Leadership alignment and the ability to establish hybrid human-AI teams will matter more than technology selection."
Enhanced Enterprise Innovation Scheme
The government will support all enterprises in reaping the benefits of AI, Wong said. "We will build on the Enterprise Innovation Scheme, which provides businesses with 400% tax deductions on qualifying expenditures in activities like R&D, innovation, and capability development.
"For businesses, the enhancement of the Enterprise Innovation Scheme to include tax deductions on AI expenditure is the exact booster we hoped for. It provides the financial runway for companies to move past tech bloat and fragmented setups towards proper AI orchestration," said Niko Walraven, Area VP - APAC, Neat.
"Long-term success also hinges on people. The new six-month complimentary access to premium AI tools for trainees who take up select AI courses is a practical answer to the risks of AI being a disruptor if talent development doesn't keep pace. This will provide students with relevant hands-on experience that equips them with the skills to enter the workforce as practitioners of AI, not just observers," said Haresh Khoobchandani, VP, APAC & Japan, Autodesk.
Kenneth Lai, VP, ASEAN, Cloudflare said: "Prime Minister Lawrence Wong’s point that fear cannot be Singapore’s response to emerging technology is an important one, and the way forward is to make AI adoption practical, affordable, and secure. The launch of Singapore’s national AI Missions and the expansion of the Enterprise Innovation Scheme are a meaningful step towards strengthening Singapore’s digital economy, especially for SMEs that want to adopt AI but are held back by cost, complexity, and security risk.
"We respect the government’s efforts to accelerate the national AI ambition and strengthen support for the wider ecosystem, and we stand ready to collaborate in any way possible so Singapore can be a trusted testbed for new AI-enabled innovation, built and deployed safely and securely."
Lai added that the next growth milestone won’t just be about ‘having AI’, but about "building with it while keeping innovation safe". "This means having a secure, resilient foundation that lets businesses move fast with confidence by giving them end-to-end visibility into how AI is used, clear guardrails to prevent misuse and data leakage, and the ability to protect AI-enabled applications and APIs from an expanding threat landscape," he said.
Bhandari commented that the expanded Enterprise Innovation Scheme gives small and medium sized enterprises (SMEs) a helpful starting point with its S$50,000 cap to test AI tools or run small pilots.
"However, AI adoption is more than buying a tool or conducting R&D. In many cases, the first S$50,000 should go into planning, which includes understanding business needs, mapping workflows, checking data readiness, and identifying where AI can add real value. Integration and customisation often cost much more than this amount, and without proper planning, SMEs risk running pilots that never scale or fit into daily operations," he warned.
"This is why financial support needs to be paired with clear guidance, helping SMEs avoid one-off projects and build solutions that can grow with the business. As companies advance, they will also need to invest in data, infrastructure, workflow redesign, cybersecurity, and workforce training. Programmes like the AI Champions initiative support this shift by helping organisations use AI to improve roles, workflows, and overall performance."
Productivity Solutions Grant expansion
"We will also strengthen our existing support schemes. The Productivity Solutions Grant (or PSG) already helps companies to adopt digital solutions. Increasingly, these solutions will be AI-enabled," Wong added.
"We will expand the PSG to support a wider range of digital and AI-enabled solutions, so that every firm, regardless of size, can access tools that help them work smarter and compete more effectively."
"We particularly welcome the expansion of the Productivity Solutions Grant to include a wider range of AI-enabled solutions. This is a game-changer for SMEs because it simplifies the path to adopting zero-touch infrastructure. A recent Neat study highlighted that such technology reduces meeting friction and saves 4.5 hours per employee weekly that is typically lost to sub-par tech," added Walraven.
"The introduction of the Champions of AI programme and the expansion of the Productivity Solutions Grant are particularly timely. While many organisations are experimenting with AI, few have undertaken a full end-to-end transformation. True AI impact requires more than deploying tools - it means reorganising data, modernising legacy systems, redesigning jobs and retraining workers," observed Love Srivastava, Regional Head, Singapore and Greater China, Confluent.
Shilu Pushpan, Country Manager, Singapore, BlueVoyant said that as supply chains grow more complex, periodic assessments and traditional monitoring are no longer sufficient to contain the risks.
"Organisations require continuous visibility into vendor risk, underpinned by senior leadership engagement that drives accountability and action. The Singapore government’s support for AI adoption, including the Productivity Solutions Grant, will also serve as a key enabler," he said.
Hub
To provide a focal point for AI activities, AI founders, practitioners, researchers, and innovators will have a shared space to help catalyse more collaboration and interaction. "We have started a pilot initiative called Lorong AI — it’s a dedicated co-working space that serves as a convening hub for our AI community," Wong said.
"We will build on this pilot, and establish a larger AI park at one-north. This will be a new cluster to catalyse ideas, forge collaborations, and translate AI initiatives into practical solutions for businesses and public services.
"As businesses race to scale AI, talent alone is not enough. AI is only
as powerful as the data behind it. Many businesses today face what we
call the 'AI context gap', where models lack access to real-time,
trusted data needed to generate accurate, relevant outcomes. Closing
this gap is critical for enterprises seeking to scale AI projects into
measurable business value. This means modernising siloed systems so data
can flow seamlessly across the organisation, supported by strong
governance and trust," said Srivastava.
"Singapore’s commitment to strengthening
AI literacy, supporting workforce transitions, and building innovation
hubs such as the new AI park at one-north creates the right conditions
for this shift. By investing in both people and modern data
infrastructure, Singapore is positioning its businesses to innovate
faster, respond more dynamically to market changes, compete globally and
translate AI ambitions into sustained growth and long-term resilience."
Voo Poh Jee, Partner, Audit Innovation, KPMG in Singapore said that the expanded AI park will succeed only if it moves "beyond the 'what' and focus(es) on the 'how'—embedding it more deeply into Singapore’s innovation ecosystem".
"This means going beyond AI experimentation to shape a future where AI-powered design, creativity and problem-solving becomes second nature across industries," Voo said.
"One way forward are initiatives that surface real, complex challenges from corporates and public agencies, turning the park into a live marketplace where youths, startups and creators can respond through apprenticeship-style sprints."
"By designing for intentional interactions between diverse groups, we can transform the park into a national engine for applied innovation—one that accelerates capability building and unlocks new economic and societal value," he added.
Work
Wong observed that AI is changing the very nature of work. "We will help Singaporeans acquire new skills, adapt to new roles, and use AI as a tool to be more productive and effective at work. Where jobs are impacted, we will manage the transitions carefully, and work closely with NTUC and our unions to help workers move into new areas and opportunities," he said.
"Our commitment is clear: every Singaporean who is willing to adapt and learn will continue to secure a good job and make a good living here in Singapore."
AI literacy classes will be provided for students across all institutes of higher learning (IHLs). The goal will be to teach students how to use AI wisely, rather than as a shortcut, while equipping them with "rigorous thinking and deep disciplinary skills".
"At the workplace, we will help workers use AI to take over routine tasks, so that they can focus their time and energy on higher-value activities — work that requires judgment, creativity, and human insight, and that cannot be replaced by machines," Wong said.
The government will help workers build practical AI capabilities, beginning with the accountancy and legal professions, Wong disclosed.
Revamped SkillsFuture website
The SkillsFuture website will also be redesigned so that users can find AI-related courses that match what their work needs.
Bee Kheng Tay, President of Cisco ASEAN, said: "Budget 2026’s
push to create an AI-ready workforce – by working with institutes of
higher learning on AI literacy courses and redesigning the SkillsFuture website
to make AI learning pathways clearer and easier to access – is
recognition that the true value of AI will be realised not by technology
alone, but by equipping people to work alongside it.
"We are encouraged by this approach, as we envision a future workplace shaped by what we call Connected Intelligence – where people, data, and AI agents collaborate seamlessly."
“We
are in the age of AI where the skills required to succeed are
completely different than it was just a few years ago. Demand for
AI-related skills has risen across industries and today nearly a quarter
of work tasks can be significantly supported by AI using current
technologies. The implication of this shift is clear: Continuous
upskilling and stronger competency in AI-related skills is essential for
Singaporeans as roles continue to evolve and work is reshaped by
technology," said Jess O’Reilly, GM, ASEAN, Workday.
"The Budget 2026’s
increased emphasis on increasing AI literacy comes at a critical time
in Singapore’s AI journey, as it recognises that building digital
capabilities is fundamentally about building human capabilities. The
redesigned SkillsFuture website alongside free access to premium
AI tools for workers are welcome initiatives.
"Both initiatives will empower workers to build practical capabilities and move up the value chain in their roles, taking on more complex and analytical tasks that will boost job satisfaction. The government’s further investment in AI training will support Singapore workers to build future-ready digital and AI skills to stay adaptable and resilient in a rapidly digitalised economy."
Lai commented: "The government’s partnership with institutes of higher learning to strengthen AI literacy for students and working adults, alongside the redesign of the SkillsFuture website to make AI learning pathways clearer and easier to access, comes at a critical time. These efforts will help people build practical skills and adopt AI with confidence, to do more without having the fear of being left behind.
"At the same time, it is important to keep in mind that AI systems are also increasingly crawling, analysing and using information at a massive scale, reshaping how content is accessed, used, and valued. That means the challenge is no longer just about learning new tools, but adapting to new ways of working alongside AI.
"To make this shift sustainable, businesses must go beyond technical training to build an understanding of data quality, privacy, and responsible use, so AI is deployed in ways that are transparent, ethical, and secure. Aligning upskilling efforts with strong data and governance practices will be key to ensuring AI adoption strengthens long-term economic resilience and innovation."
Access to premium AI tools
"Learning must go beyond theory. It must translate into hands-on applications. While most AI tools are free at the basic level, access to more advanced models requires a paid subscription. To further encourage learning, we will 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," Wong added.
"While the six‑month subscription offers a strong start for
experimentation and exploration, ongoing guidance and support beyond
this period will be critical to ensure that adoption is sustained,
embedded, and delivering long‑term impact," Bhandari said.
"SGTech believes
there is a significant opportunity for this programme to enhance
workforce value and shape the future of work in Singapore. Effective
adoption can free employees to focus on higher‑value tasks, create new
leadership pathways for AI advocates, and broaden opportunities for
fresh graduates, fractional or flexible workers, and senior employees to
contribute meaningfully."
"The challenge ahead lies in equipping workers with the skills to work effectively alongside AI, rather than simply introducing new tools. Targeted upskilling that strengthens critical thinking, data literacy, and communication capabilities is likely to deliver greater impact than broad-based training alone. This approach supports younger workers who may miss early learning opportunities due to automation, enables older workers to adapt to digitalisation, and helps sustain workforce resilience as job roles continue to change," said Jessica Zhang, Senior VP, APAC, ADP.
"The government's move to pair AI training with six months of premium tool access represents a strategically significant step in accelerating the nation’s transition into an AI‑enabled economy. By giving Singaporeans hands‑on exposure to advanced models—tools that usually require paid subscriptions—they can practise, experiment and truly apply what they learn, becoming AI‑fluent rather than AI‑dependent. This is exactly the kind of practical capability building that will strengthen employability and position Singapore as a global testbed for responsible and efficient AI integration,” commented Parul Munshi, Workforce Asia Pacific Leader and Workforce Transformation Partner, PwC South East Asia Consulting.Risk
Wong touched on cybersecurity as part of a larger conversation on defence. "The threat landscape continues to evolve — with attacks becoming more frequent, more coordinated, and more sophisticated," he observed of the digital environment.
"We will therefore continue to strengthen our cybersecurity posture — by deepening capabilities, improving coordination across agencies, and better safeguarding our most critical systems."
The government is also taking a more wholistic approach to defence. "It is also no longer sufficient to defend government systems alone. Many private sector companies play a critical role in delivering essential services, and their systems are likewise vulnerable. The attackers often exploit smaller or less-protected companies as weak links to gain access to larger systems, and cause widespread disruption. Yet many companies lack the resources or the expertise to deal with these advanced cyberthreats," Wong said.
"So we will therefore deepen partnerships with industry, especially owners of critical information systems, to improve our preparedness and strengthen our collective cyberdefence."
Pushpan elaborated on suppliers being the 'weak links to gain access to larger systems'. "Nearly two-thirds of organisations identify AI as best suited to
monitoring supplier risk at scale, given the volume and velocity of
signals generated across third-party environments. To realise this
potential, Singapore organisations must adopt a more resilient model of
cyberdefence, one that prioritises shared responsibility and continuous
visibility," said Pushpan.
"By moving from passive monitoring to active,
collaborative remediation of security issues with suppliers,
organisations can better identify and help fix risks, and contain impact
when incidents occur."
Innovation
Singapore is always on the hunt for the next big thing as well. "Singapore must be a place where frontier technologies are developed, tested, and commercialised. That is why we will invest S$37 billion under the Research, Innovation, and Enterprise, or RIE2030 plan. This reflects our sustained commitment to research and innovation, amounting to around 1% of GDP each year," Wong said.
"PM Wong’s vision for Singapore as a frontier technology launchpad, backed by a S$37 billion investment, is a critical inflection point. This commitment cements Singapore's status as a global testbed. We see this as a tremendous opportunity to collaborate, leveraging tech and domain expertise to translate research into enterprise-grade reality, ensuring Made in Singapore technology signifies innovation and reliability," said Jornt Moerland, Senior VP APAC, Siemens Data & AI.
"(The Budget's) focus on fostering leadership in innovation with the S$37 B announced for research, innovation and enterprise, spend reaffirms the nation’s ambition to remain a leader in critical industries, not only shaping innovation and accelerating value creation, but also driving competitiveness and creating lasting economic impact for future generations," stated Peter Liddell, Principal Advisor, Head of Healthcare and Life Sciences, and Global Leader, Operations Centre of Excellence, KPMG in Singapore.
"The S$37 billion commitment under the Research, Innovation and Enterprise 2030 plan underscores Singapore’s ambition to remain a competitive and future-ready innovation hub," added Lee Bo Han, Partner, R&D and Incentives Advisory, KPMG in Singapore.
"It strengthens the end-to-end innovation timeline – from research to commercialisation and real-world deployment. With expanded support for collaboration, test-bedding and capability development, businesses are better positioned to translate scientific advances into differentiated products and solutions. Importantly, the continued commitment gives companies the confidence to invest in next-generation technologies and build durable competitive advantages."
Quantum advantage
Decades-old investments are now bearing fruit. Wong shared that the Centre for Quantum Technologies at NUS in 2007, when quantum research was largely theoretical. "But we invested patiently in building foundational capabilities, believing that these would one day translate into transformative applications," he said.
"That foresight is paying off. Today, quantum computing is moving rapidly from theory to reality, with far-reaching implications across many fields. The major technology players are investing heavily in capabilities to build commercial-scale quantum computers. And Singapore is attracting some of the best."
Quantum computer company Quantinuum has established operations in Singapore and will be hosting its latest quantum computer in the city-state, a first for a country outside of the US, Wong shared.
"This will give our researchers and companies, including a few homegrown startups, direct access to cutting-edge quantum compute and opportunities to work on meaningful projects," he said.
"We are also attracting top global talent and partnerships. Nobel Laureate Professor John Martinis, a pioneer in superconducting systems, co-founded a quantum computing startup, which is collaborating with our researchers at A*STAR and NUS. They are developing novel components to advance the performance of quantum computers, using state-of-the-art semiconductor processes.
"They chose Singapore because of the unique combination of our strengths — in advanced manufacturing, semiconductors, and frontier quantum research."
"These examples show how we can build leadership in key growth areas, and shape where innovation and value creation take place. In doing so, we strengthen Singapore’s strategic resilience and relevance, while creating more jobs and better opportunities for Singaporeans," Wong concluded.
"Singapore’s continued early bet on frontier technologies, exemplified by hosting the latest quantum computer by Quantinuum and collaborations with global experts in quantum research, demonstrates a strategic commitment to technological leadership. This quantum initiative not only enhances Singapore’s innovation ecosystem, but also complements its AI ambitions by laying the groundwork for next-generation AI research and computational capabilities," said Anthony Dias, AI Hub Leader, PwC Singapore.
James Cook, APAC Head at DigiCert, noted that Singapore’s early and deliberate bet on quantum technology reinforces that planning for post-quantum cryptography can no longer be deferred. "While large-scale quantum disruption may still be some way off, building cryptographic agility today will be essential to safeguarding long-term digital resilience,” he said.
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