Prime Minister Lawrence Wong announced the creation of a new inter-ministerial National AI Council during his Budget 2026 speech on February 12, 2026, emphasizing artificial intelligence as a critical tool to address structural challenges and secure economic advantages in an uncertain global landscape.
Prime Minister Lawrence Wong delivers Budget 2026. Source: sg.news.yahoo.com
Council Leadership and Objectives
Chaired by Wong himself, the National AI Council includes Deputy Prime Minister Gan Kim Yong along with several key ministers, such as Josephine Teo for digital development and information, Ong Ye Kung for health, and others, ensuring coordinated efforts across government agencies. The council will provide strategic direction for Singapore’s overall AI agenda, while overseeing regulations, resource allocation, and the acceleration of innovative AI solutions that deliver tangible outcomes.
This high-level body represents a national push to harness AI effectively, building on earlier strategies like the National AI Strategy 2.0 from 2023, and responding to recommendations from recent economic reviews that highlight AI’s role in boosting productivity amid constraints such as limited labor and resources.
Targeted National AI Missions
Under the council’s guidance, Singapore will launch a series of national AI missions focused on transforming four priority sectors: advanced manufacturing, connectivity and logistics, finance, and healthcare.
These missions, designed with clear objectives and measurable results, will drive innovation in areas like building globally competitive factories, automating port and airport operations to enhance efficiency, and scaling AI applications that strengthen Singapore’s position as a regional hub.
Government efforts will align research and development, regulatory frameworks through sandboxes for safe testing, and investment promotion to support rapid deployment and scaling of these technologies across the economy.
Support Measures for Businesses
To encourage widespread adoption, the Enterprise Innovation Scheme will expand to cover AI expenditures, offering businesses 400 percent tax deductions on qualifying costs, capped at S$50,000 per year for assessments in 2027 and 2028. A new Champions of AI program will provide tailored assistance, including enterprise transformation plans and workforce training, for companies committed to comprehensive AI integration.
Additionally, the Productivity Solutions Grant will broaden to include more AI-enabled tools, helping firms, especially smaller ones, automate operations and improve competitiveness.
Training and Infrastructure Investments
Workers and students will gain enhanced access to AI skills development, with the TechSkills Accelerator expanding to non-tech fields starting in accountancy and legal professions, while the SkillsFuture portal gets redesigned for clearer AI learning pathways. Participants in selected AI courses will receive six months of complimentary access to premium AI tools, promoting hands-on practice, and higher education institutions will strengthen AI literacy programs to foster responsible use.
On the infrastructure side, a larger AI park will develop at one-north to foster collaborations among start-ups, researchers, and businesses, building on the existing Lorong AI co-working pilot and positioning the district as a vibrant hub for translating ideas into practical solutions.
Strategic Importance for Singapore
These interconnected initiatives underscore Singapore’s commitment to positioning AI as a decisive strategic advantage, enabling the nation to overcome limitations, drive growth in high-potential sectors, and maintain global relevance through innovation and skilled talent development.
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