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| Source: Singapore Budget website. The 2026 Budget is themed Securing Our Future Together in a Changed World. |
Industry observers had a lot to say post-Budget on how the government, industry and businesses can capitalise on today's trends, many also sharing what their companies are doing:
AI strategy
"AI has rightfully taken centrestage in Budget 2026. As it becomes more deeply rooted in Singapore’s economy, its success must be supported by the right internal foundations. One of the biggest challenges with AI today is that it generates outputs at lightning speed, but without context, those outputs rarely drive real business results. To deliver impact, businesses must unify customer data and business context in one place, empowering humans and AI to work as a high-impact team.
- Megan Hughes, MD & VP, JAPAC, HubSpot
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- Charles Loh, Singapore Consulting Leader, PwC South East Asia Consulting
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"Budget 2026 confirms that Singapore is no longer just AI-curious. It is AI-first. The establishment of the National AI Council and the S$1 billion injection into the Startup SG Equity scheme for early-stage and growth-stage companies signal a clear commitment to securing a strategic advantage in a fractured global economy."
- Niko Walraven, Area VP - APAC, NEAT
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"Prime Minister Lawrence Wong’s Budget 2026 statement reinforces a clear message - Singapore is no longer observing the AI revolution but is institutionalising it. We wholeheartedly welcome this proactive stance to extend access to enterprise AI tools for training, significantly lowering barriers to hands-on experimentation. This fosters innovation and accelerates a skilled workforce capable of leveraging advanced AI, much like how leading organisations drive digital transformation."
- Jornt Moerland, Senior VP APAC, Siemens Data & AI
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- Ajay Kumar Sanganeria, Partner, Head of Tax, KPMG in Singapore
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"Singapore's ambition to be a global trusted AI hub, while accelerating AI across sectors, means AI governance will be a core business requirement. Businesses need to implement AI governance measures, leveraging available guidelines from various Singapore government agencies to remain competitive, compliant, and credible.
"Clear accountability, a risk-based approach, and early governance will be critical for sustainable AI implementation at scale. Good governance empowers AI adoption with confidence, while unclear governance hinders it."
- Edmund Heng, Partner, Technology Risk, KPMG in Singapore
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"AI is revolutionising trade and customs by managing the complexity and scale of global data flows. But speed alone is insufficient — true compliance requires specialists who ensure that decisions are legally sound, strategically aligned, and trusted by regulators. Importantly, AI only delivers reliable insights when data hygiene is strong. This requires a strong foundation of clean, consistent, and well‑structured data."
- Shafiqah Binte Abdul Samat (Ms), Principal Advisor, Trade and Customs, KPMG in Singapore
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"Singapore’s foresight, resilience, and ability to deliver outsized outcomes despite limited resources continue to underscore the nation’s sharp strategic thinking. The Budget 2026 announcements — including the formation of a National AI Council, enhancements to the Productivity Solutions Grant, and the launch of the Champions of AI programme — signal a deliberate shift towards building an intelligent, future‑ready digital economy.
"Crucially, these initiatives recognise that sustainable AI impact will not come from experimentation alone, but from enterprises investing in strong, trusted AI foundations — where data is connected, secure, and governed — enabling organisations to scale innovation with confidence and unlock real business value from enterprise AI."
- Kenneth Poh, Country Manager of Singapore and the Philippines, NetApp
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"For AI to actually move the needle, it has to be accessible. We saw this early on with the Digital Enterprise Blueprint, with Salesforce pledging commitment to equip SMEs with AI capabilities under the Data+AI Boost SME Program. Initiatives such as the new Champions of AI programme, and the expansions of the Enterprise Innovation Scheme and Productivity Solutions Grant, show the importance for mass adoption.
"Value realisation requires businesses to bridge the last mile gap - between pure capabilities and the infrastructure or form that makes it practical, accessible and deployable at scale. In the context of AI, that requires supplementing LLMs with the context, control, observability, and orchestration that enterprise-grade AI demands. That means a broader system that incorporates data, metadata, business logic, guardrails, security protocols, and other elements to ensure AI agents work consistently at scale. This last mile — converting raw intelligence into enterprise-grade AI — is where true business value resides."
- Paul Carvouni, Senior VP & GM, Salesforce ASEAN
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"Across sectors such as advanced manufacturing, logistics, healthcare, and customer service, AI systems depend on fast, resilient, and secure networks to operate effectively. The performance of AI applications is directly tied to the reliability of the infrastructure supporting them. Without robust connectivity and secure, high-performance networks, AI investments risk under-delivering on productivity gains and service improvements.
"To unlock the full economic potential of Singapore’s AI investments, infrastructure must be viewed as a strategic enabler rather than a back-office utility. AI readiness should be treated as a core business capability—embedded into enterprise architecture, security frameworks, and operational strategy. This includes networks designed to handle high-volume data traffic intelligently, ensure real-time responsiveness, and safeguard digital assets."
- Adeline Liew, Country Business Leader, Singapore, Alcatel-Lucent Enterprise
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"Singapore’s Budget 2026 reinforces the push to safely and responsibly accelerate AI adoption, strengthen digital trade, and anchor trust as a national competitive advantage. With new national AI missions spanning sectors as well as regulatory sandboxes to help companies test AI safely and efficiently, this direction reflects the reality on the ground: AI is no longer experimental, but increasingly embedded into how organisations operate.
"Recent data shows that AI and machine-learning transactions in Singapore have surged by 200% year-on-year, driven not only by standalone tools, but by AI capabilities built directly into everyday enterprise platforms and workflows.
"Prime Minister Lawrence Wong’s address rightly focuses on accelerating adoption, including the call for companies to adopt AI comprehensively, but speed must also be matched with safety guardrails. Many Singaporean organisations have long struggled with the lack of visibility into their data and systems – and the speed of AI adoption is only amplifying this challenge. Without stronger visibility, governance, and modern security controls, even as AI delivers productivity gains it will undoubtedly introduce systemic risk.
"Trust must sit alongside speed. In a highly connected economy like Singapore’s, where many companies act as regional command centres and digital intermediaries, cyber incidents rarely remain isolated; they cascade quickly across operations, partners, and markets. As support for enterprises to adopt AI strengthens, making cyber resilience operational will be critical. Practical support for AI governance, data protection, and security architectures designed for machine-speed environments will allow Singapore leverage AI to strengthen its position as a trusted hub."
- Sanjay Yadave, VP & MD, Greater Asia, Zscaler
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"Businesses need to be strategic about how they achieve results while managing costs. One of the most effective ways to control AI spending is to focus on the areas where it delivers the most value, using large language models (LLM) efficiently rather than broadly. By prioritising high-impact use cases and refining their approach over time, companies can get the benefits of AI without overspending.
"By simplifying how AI features are designed and used, organisations can reduce costs while also improving speed and reliability. Rather than defaulting to the newest or most advanced models, businesses should choose solutions that are fit for purpose. In many cases, proven and more affordable options can deliver the same customer value at a much lower cost when applied thoughtfully.
"A disciplined approach to production is equally important. While cutting-edge models may be essential during prototyping to validate feasibility and customer impact, they are rarely cost-effective at scale. Once the value of an AI initiative is clear, organisations should shift their focus to reducing costs by simplifying how the technology is used and selecting more cost-effective solutions that still deliver strong results.
"By continually testing, refining and scaling what works, companies can strike the right balance between innovation and affordability, ensuring their AI investments deliver lasting value without placing unnecessary pressure on budgets. An intelligent observability practice offers IT teams end-to-end visibility into their AI-integrated workflows, providing real-time insight to troubleshoot, compare, and optimise approaches. This allows companies to make adjustments when necessary to manage costs, improve performance, and reduce common issues that can cause costly hiccups."
- Rob Newell, SVP and GM, APJ, New Relic
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“In his Budget 2026 speech, Prime Minister Wong underscored Singapore’s ambitions to lead in AI and quantum technologies, including hosting next-generation quantum systems and strengthening cybersecurity capabilities. As AI systems scale across industries, this will redefine what it means to build and maintain intelligent trust in a connected world. Organisations will face growing expectations to ensure their AI systems are not only powerful, but verifiable, transparent and integrity-driven — with trusted identities, supply chain integrity and data provenance built in from the start."- James Cook, APAC Head at DigiCert
AI strategy: cybersecurity
"Embracing AI can help cybersecurity teams do more with less by streamlining their operations and freeing up analysts from the noise of modern cyber operations. It aligns with Singapore’s broader ambition to overcome structural constraints such as a tight labour market and ageing workforce. However, business leaders should not make the mistake of trusting AI-driven systems blindly.
"AI can analyse vast datasets in seconds and flag discrepancies, but it struggles to identify intent. To make the most of the grants and transformation initiatives announced in Budget 2026, enterprises should ensure they let AI carry manual workloads without replacing humans at the helm."
- Lee Anstiss, Regional Director, Southeast Asia and Korea, Infoblox
AI strategy: funding
"Many SMEs will welcome the move away from pre‑fixed solution bundles, as the added flexibility better reflects sector‑specific realities and varying levels of SME maturity. From an SME’s perspective, the enhanced Productivity Solutions Grant represents a meaningful upgrade in both intent and impact. However, this flexibility also raises expectations—SMEs must now make smarter, more deliberate choices. Ultimately, the enhancements send a strong signal of commitment, but they will favour SMEs that are focused, disciplined, and strategic in their transformation approach."- David Toh, Entrepreneurial and Private Business Leader, PwC Singapore
AI strategy: healthcare
"The AI mission has significant implications for critical sectors such as healthcare. Wider AI deployment can streamline administrative workflows, reduce admin costs and free up frontline professionals to focus on patient care.
"However, technology alone is insufficient – meaningful transformation will require a shift in leadership mindset and organisational culture. Driving this cultural change is crucial for unlocking the full potential of AI within the healthcare system, and Singapore’s leadership must champion a future-forward approach to ensure hospitals and healthcare professionals gain the confidence and capability to undertake AI-driven transformations at scale."
AI strategy: manufacturing
"The establishment of the National AI Council and the launch of targeted national AI missions to transform key economic sectors, including advanced manufacturing, signal a decisive shift toward the sectoral support our industries need.
"For instance, design & make industries like construction and manufacturing don’t just need general chatbots. They need high-level coordination, strategic direction, and support that these new initiatives promise."
- Haresh Khoobchandani, VP, APAC & Japan, Autodesk
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"One practical way manufacturers are responding is by relying more heavily on digitalisation to reduce risk before committing capital. Using technologies such as the comprehensive digital twin, companies can design, simulate, and validate products and production systems virtually before changes are made on the factory floor. This helps reduce costly rework, limit dependence on physical prototypes, and improve resource efficiency at a time when costs remain elevated.
"Digital twins also allow manufacturers to test different scenarios across production and supply chains, giving them greater visibility into potential bottlenecks and vulnerabilities. This provides forward-looking insights that are especially valuable when global trade conditions and demand patterns remain volatile.
"As Budget 2026 places emphasis on productivity and business resilience, manufacturers will need to focus on approaches that deliver tangible cost and risk reductions. Software-driven methods that connect design, manufacturing, and operations can help companies respond more confidently to uncertainty, while building the operational resilience needed to remain competitive over the longer term."
- Alex Teo, VP & MD of Southeast Asia, Siemens Digital Industries Software
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"The establishment of the National AI Council and the launch of Singapore’s national AI Missions mark a significant step in accelerating AI adoption, especially in advanced manufacturing. A coordinated national approach provides enterprises with greater clarity and confidence to scale AI responsibly.
"Through Zebra’s collaboration with partners such as the Singapore Manufacturing Federation, we see growing momentum among manufacturers adopting AI in practical, results driven ways that strengthen competitiveness and resilience.
"The priority now is moving from experimentation to implementation. This is the era of intelligent operations. The greatest impact comes from embedding AI at the connected frontline, from automation and machine vision to predictive maintenance and real time visibility. Zebra remains committed to supporting Singapore’s AI ambitions by enabling smarter decisions, higher productivity and innovation for the connected frontline."
- Christanto Suryadarma, Head of Partnerships for APAC, Zebra Technologies
Explore
Read the post about the Budget Statement
A post with more reactions on the Budget is at https://www.techtradeasia.com/2026/02/singapores-fy2026-budget-reactions-on.html
Check out KPMG's strategic paper on the Budget announcements, Gain clarity in uncertainty: The KPMG Clarity Brief, at https://kpmg.com/sg/en/campaigns/kpmg-singapore-budget.html
Hashtags: #SGBudget2026, #SingaporeBudget, #Budget2026
*SME stands for small and medium-sized enterprise.
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