Singapore Unveils Six-Point AI Masterplan in Budget 2026
Source: The Straits Times
Prime Minister Lawrence Wong declared AI a strategic advantage and launched the National AI Council alongside targeted grants, a new AI park, and free premium tool access for learners.
Prime Minister Lawrence Wong used his Budget 2026 speech to declare AI a strategic advantage for Singapore and rolled out a six-point masterplan spanning governance, infrastructure, enterprise support, and skills — the most coordinated push yet to translate national AI ambition into deployed capability.
The centrepiece is the new National AI Council, chaired by PM Wong himself with Deputy PM Gan Kim Yong and Ministers Josephine Teo and Ong Ye Kung as members. Its mandate goes beyond advisory: the Council will direct regulations, allocate resources, and oversee national AI missions in four priority sectors — advanced manufacturing, connectivity, finance, and healthcare — with a clear focus on moving solutions from development through testing to scaled deployment.
For businesses, the Enhanced Enterprise Innovation Scheme (EIS) gets AI-specific teeth: a new 400% tax deduction on up to $50,000 per year in qualifying AI expenditure for YA 2027 and 2028, plus an expanded partner institution list that now includes a Sectoral AI Centre of Excellence for Manufacturing. The Champions of AI Programme adds tailored support for firms doing comprehensive AI transformation, while the Productivity Solutions Grant widens its catalogue of AI-enabled solutions.
On the infrastructure front, JTC will develop a dedicated AI Park at one-north — a purpose-built district for AI start-ups, researchers, and enterprises to test-bed and scale solutions near existing research clusters. This builds on the Lorong AI co-working initiative and signals a shift from ad-hoc space allocation to intentional ecosystem clustering.
Why it matters for Singapore: The Budget 2026 package moves Singapore from strategy documents to execution machinery. The National AI Council gives AI a permanent seat at the highest decision-making table, the EIS enhancements put real capital behind enterprise adoption, and the AI Park at one-north creates the physical density that made Silicon Valley's AI cluster possible. The six-month free premium AI tool access for MySkillsFuture learners is a pragmatic touch — hands-on tooling beats abstract literacy courses. If the missions in manufacturing, finance, and healthcare deliver shipped products (not just pilots), Singapore will have a replicable playbook for turning national AI strategy into economic value.