2026 highlights: February

Technology highlights for February 2026 included:

- Anthropic's Claude Opus 4.6 can do better than its predecessor, and also perform work tasks such as running financial analyses, doing research, and using and creating documents, spreadsheets, and presentations. This caused consternation among enterprise software providers as the cost of a Claude subscription is lower than that for enterprise software. 

Source: Anthropic. Claude Sonnet 4.6 was introduced mid-February.

Anthropic also unveiled Claude Sonnet 4.6, which has improved coding skills as well as upgraded skills for computer use, long-context reasoning, agent planning, knowledge work, and design.

The company further announced US$30 B in funding led by Singapore's GIC and US-based Coatue. The investment will fuel the frontier research, product development, and infrastructure expansions, Anthropic said. 

- Citrini Research described a 2028 scenario where the economy is in "a negative feedback loop with no natural brake" as AI capabilities improve, leading to fewer workers needed, so there is less spending overall, which pushes firms to invest more in AI so AI capabilities improve, in a vicious cycle. 

The scenario mentions a late 2025 Anthropic development where "a competent developer working with Claude Code or Codex could now replicate the core functionality of a mid-market SaaS product in weeks. Not perfectly or with every edge case handled, but well enough that the CIO reviewing a US$500 K annual renewal started asking the question 'what if we just built this ourselves?'"

It also suggested that SaaS companies like ServiceNow, which charges by the user, are enabling AI-driven headcount reductions that would ultimately destroy their own revenue bases.

The scenario sparked a tech selloff.

Nigel Green, CEO of financial advisory deVere Group said: “Recent trading patterns show a decisive shift from enthusiasm about AI productivity gains toward scrutiny of who stands to lose pricing power.”

According to Green, this marks a turning point in how markets assess technological disruption. He said: “For more than a year, AI was largely priced as upside. Now markets are assessing displacement risk.

“This transition changes valuation frameworks across industries.”

Green observed that “routine single-jurisdiction tax optimisation and template-based planning can now be delivered faster and at lower cost. The shift is permanent, and firms built primarily around process-driven models face margin compression.”

Green also said that there is increasing automation in many industries. “The core question for investors is whether a company’s value proposition strengthens through AI integration, or weakens because its primary function becomes commoditised,” he pointed out.

“Operators built around narrow, repeatable workflows face greater competitive pressure as automation increases efficiency and transparency.

“Organisations with diversified capabilities, international reach and regulatory depth are structurally more resilient.” 

- Change Your Password Day was on February 1.

"Change Your Password Day highlights a persistent issue organisations continue to face. Stolen credentials remain one of the most effective and reliable ways attackers gain initial access to corporate environments. A single compromised password, particularly one tied to elevated access, can quickly escalate into lateral movement, data exfiltration or ransomware if controls are not in place," said Darren Guccione, CEO & Co-Founder, Keeper Security.

"Addressing this risk requires more than periodic password resets. Organisations need to enforce strong, unique credentials across all users, eliminate shared accounts and tightly control privileged access. Centralised password management, combined with strong authentication and least-privilege access policies, improves both security and operational visibility. 

"When access is properly managed and monitored, credential theft becomes far less damaging, and organisations are better positioned to contain threats before they become full-scale incidents."

- The Hong Kong government unveiled measures to develop Hong Kong into an international innovation and technology (I&T) centre, including around managing digital assets, AI support, and development of physical facilities to accelerate growth.  

- Singapore announced national AI Missions to drive AI-led transformation in key sectors of the economy, overseen by a National AI Council chaired by Singapore PM and Minister for Finance Lawrence Wong. 

“Unsurprisingly, AI was a huge focus in this year’s Budget, with various measures including the national AI Missions and National AI Council designed to transform key sectors and drive Singapore’s AI agenda. In 2026, AI will continue to bolster the growth of Singapore’s economy," said Jess O’Reilly, GM, ASEAN, Workday.

"Workday’s research found that 79% of organisations in Singapore are already rolling out AI agents or have begun operating them, signalling a shift from theoretical to practical implementation and a clear readiness for Singapore businesses to embrace AI as an integral part of their business. This aligns with the recent launch of the Model AI Governance Framework for Agentic AI which provides clear guardrails on risk-bounding and human accountability. 

"As PM Wong shared, ensuring the safe and responsible use of AI will be critical as Singapore cements its position as a trusted hub for companies and researchers to deploy AI. The framework ensures that as organisations embrace AI agents, they do so with a 'human-in-the-loop' approach." 

"Singapore’s Budget 2026 marks a decisive step in advancing the nation’s AI ambitions. The launch of new national AI Missions - alongside the establishment of a National AI Council chaired by Prime Minister Lawrence Wong - signals a coordinated effort to move with greater speed and scale in harnessing AI’s potential," said Love Srivastava, Regional Head, Singapore and Greater China, Confluent. 

Kwek So Cheer, Digital Solutions Partner, PwC Singapore, said that the National AI Council's focus on advanced manufacturing, connectivity & logistics, finance, and healthcare turn will lead to the transformation of adjacent sectors. "Thus, businesses not directly in these priority sectors can expect to be pulled along in this transformation journey," he said. 

A Champions of AI programme is to provide tailored support for firms which want to use AI to transform their business.

"Singapore's Budget 2026 marks a decisive shift from AI experimentation towards nationwide transformation. The Champions of AI programme and expanded tax incentives make it clear: we're no longer asking if AI works—we're asking how to make it work systematically across every sector," said Andrew McCarthy, GM of ANZ, SEA, and India, Notion. 

"The Singapore government’s newly announced national AI Missions and Champions of AI programme - on top of the S$1 billion investment in public AI research over the next five years - underscores a bold vision to establish the nation as a global AI hub. To fully realise this ambition, it is essential to recognise that AI is only as powerful as the infrastructure that supports it," said Bee Kheng Tay, President of Cisco ASEAN.

"Recent data from Cisco’s AI Readiness Index reveal that while 83% of organisations in Singapore plan to deploy AI agents in the next year, more than one in three (38%) say their current networks are not equipped to scale for complexity or data volume required by AI. This underscores the challenge of 'AI infrastructure debt', where gaps in compute, networking, and security create bottlenecks that hinder innovation and impact for enterprises."

"As Singapore advances its AI investments, it is critical to focus on strengthening digital infrastructure, ensuring networks can handle complex data flows, implementing cybersecurity frameworks, and effective governance structures," Tay added.

Singapore will further expand the existing Productivity Solutions Grant to support more digital and AI-enabled solutions. 

"Expanding the Productivity Solutions Grant to include a wider range of AI and AI-enabled tools will help defray the costs relating to adopting AI. This expanded list will need to be refreshed regularly, given how fast technology advances now," observed Kwek. 

"While much of the public discourse focuses on AI models and applications, a more immediate challenge for enterprises lies beneath the surface: infrastructure readiness. Budget 2026’s enhancements to the Productivity Solutions Grant for AI-enabled solutions and the introduction of the Champions of AI programme recognise that digital transformation is not solely about deploying intelligent software. It requires organisations to re-architect data flows, redesign workflows, and modernise the foundational systems that connect people, processes, and technology," said Adeline Liew, Country Business Leader, Singapore, Alcatel-Lucent Enterprise. 

"PM Wong framed AI as a strategic advantage for Singapore. However, we are faced with a critical challenge. Our research shows 70% of Singaporean workers find AI tools lack company context, while the same (72%) spend time editing generic AI outputs. The issue isn't AI capability—it's increasing busywork due to fragmented systems. The priority now is giving AI the context to produce work teams can actually use," McCarthy added.

"As the Productivity Solutions Grant expands to support AI-enabled solutions, the real opportunity lies in consolidating institutional knowledge within a connected workspace. When AI draws from a unified source of truth rather than 80+ siloed tools, it stops producing generic outputs and starts delivering work grounded in your company's specific processes, memory, and goals.

"Budget 2026 provides the incentives. Now businesses must use them strategically: consolidate fragmented systems into unified workspaces where AI has the context to actually finish work. Singapore has solved the 'why'; connected AI-native platforms like Notion help organisations solve the 'how'."

An existing Enterprise Innovation Scheme (EIS) will be enhanced.

"The expansion of the EIS to include further deductions for qualifying AI expenses should encourage businesses to seriously evaluate AI adoption in their operations, if they have not already started. S$50,000 is a meaningful amount, particularly to smaller businesses, to help kickstart their AI journey," noted Tan Tay Lek, Tax Partner, PwC Singapore.

"To harness the potential of AI, the Singapore government is supporting local businesses to defray costs of adopting AI by offering 400% tax deductions on qualifying AI expenditure capped at S$50,000 through the Enterprise Innovation Scheme. While this is done to further the national AI agenda by getting local enterprises to explore the deployment of AI in their businesses, more clarity is needed on what constitutes 'qualifying AI expenditure' to avoid abuse in making tax deduction claims," noted Lennon Lee, Tax Leader, PwC Singapore.

The Singapore government will also help workers build practical AI capabilities via the TechSkills Accelerator (TeSA), beginning with the accountancy and legal professions. 

Said Koren Wines, MD, Xero Asia: "Years of proactive government support have made Singaporean SMEs some of the most digitally savvy and equipped in the world. But when every business has access to the same tools, the differentiator becomes how innovatively they use it to achieve real results. Human ingenuity becomes the ultimate competitive edge.

"The government clearly recognises this. The Champions of AI programme and the expansion of the Enterprise Innovation Scheme – offering 400% tax deductions on AI expenditure – are designed to de-risk experimentation. Furthermore, expanding TeSA to provide AI training for non-tech roles acknowledges that AI mastery is now a core requirement for every professional, regardless of their industry."

"As Singapore navigates global uncertainty and rapid technological change, the concept of job security is being redefined. It is no longer only about preserving roles, but about sustaining employability - ensuring workers have the skills, visibility and support needed to adapt as business needs evolve. In this context, workforce resilience is central to long-term economic stability," said Jessica Zhang, Senior VP, APAC, ADP.

"For employers, this calls for a shift from reactive responses to more forward-looking workforce planning. Greater visibility into workforce costs, skills distribution, and employment patterns enables organisations to anticipate change earlier, redeploy talent where possible, and support reskilling before disruption takes hold. Workforce and payroll data therefore play an increasingly important role in informing decisions that are both practical and equitable.

"As Budget priorities continue to emphasise productivity, skills development, and inclusive growth, workforce resilience will be shaped by trust, transparency, and long-term workforce capability. In a modern economy, job security is not achieved by resisting change, but by equipping workers to move through it with greater confidence."  

"Budget 2026’s support for AI upskilling – including free access to premium tools for a selected period– reinforces Singapore’s push towards adaptability and future readiness," said Eugenia Tay, Personal Tax & Global Mobility Services, Tax, KPMG in Singapore.

"By lowering the expense of reskilling, these measures enable enterprises to boost productivity, accelerate innovation and redesign roles for long-term competitiveness. Ultimately, a future-ready workforce will enable enterprises to capture opportunities in an increasingly AI-driven economy, and build Singapore’s key strategic advantage for sustainable growth."

The SkillsFuture website will be redesigned to prioritise AI learning, while those taking selected AI training will be eligible for a six-month subscription to advanced AI tools.

"Singapore’s timely push to make AI upskilling accessible can translate learning into on-the-job productivity by pairing clearer SkillsFuture pathways with six months of premium tool access, strengthening the nation’s talent pool and SME capabilities. To optimise impact, Singapore should set measurable outcomes, enable mentorship and build communities of practice, and provide targeted SME support, underpinned by data, IP, and responsible AI guardrails," said Ding Suk Peng, Workforce Tax Leader, PwC Singapore.

- Nxera, Singtel Group’s regional data centre arm, opened DC Tuas, Singapore's largest, most power-dense, most energy-efficient and multi-tenanted data centre.  

Singtel’s Digital InfraCo also launched a Centre of Excellence (CoE) for Applied AI with NVIDIA. 

Investment firm KKR and Singtel further announced that they will jointly acquire the remaining 82% stake in ST Telemedia Global Data Centres from ST Telemedia for S$6.6 B. When the acquisition is complete, KKR and Singtel will own stakes of 75% and 25% respectively in the company.

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*SaaS refers to software-as-a-service. SME stands for small and medium sized enterprise.