Singapore’s Prime Minister on Thursday spoke about the adoption of artificial intelligence (AI) as a “decisive factor for success” while acknowledging the displacement of jobs by AI during his speech on Budget 2026: Securing Our Future Together in a Changed World.
AI raises productivity and will be “a strategic advantage for Singapore” that helps overcome structural constraints, limited natural resources, rapidly ageing population, and tight labour market, said PM Lawerence Wong.
Companies and researchers come to view Singapore as a trusted hub in deploying AI effectively, responsibly, and speedily.
PM Wong said “more than 60 firms, including Google and Microsoft, have set up AI Centres of Excellence” which “have created a growing number of good jobs for Singaporeans — in AI research, engineering, and deployment.”
He laid out four key sectors: advanced manufacturing, connectivity, finance, and healthcare that will lead AI transformation.
The aim is to build best-in-class factories, automate connectivity and logistics to move goods efficiently.
PM Wong urged companies to adopt AI, while acknowledging the demands of end-to-end transformation, but emphasising that such transformation will help companies “gain a decisive competitive advantage.”
A few companies like DBS and Grab in Singapore are already moving decisively on AI transformation.
A new ‘Champions of AI’ programme with customised support for each company will be launched to help companies’ transition into AI.
Small-medium enterprises (SMEs) will receive 400% tax deductions on R&D, innovation, and capability development, capped at $50,000 per year for 2027 and 2028.
The Expand The Productivity Solutions Grant (PSG) will be enhanced to provide a wide range of AI solutions.
PM Wong shared how a SME benefitted from PSG.
HarriAnns, a three-generation nonya kueh maker, adopted an AI-enabled restaurant management system under PSG to serve customers faster and grow its revenues through automation of orders, billing, and streamlining operations.
Addressing fears that AI will take the jobs of workers who perform routine tasks, PM Wong assures the government “will put in place strong support to help our workers adapt and progress.”
“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,” he added.
PM Wong said one of the key advantages of AI is that it allows workers to focus on “higher-value activities” that cannot be replaced by machines such as judgement, creativity and human insight.
He cited the accountancy profession where automation of data consolation and book-keeping enables workers to move up to value-added roles such as client advisory, forensic work and complex analysis.
AI literacy for students across all our Institutes of Higher Learning (or IHLs) will also be strengthened to equip them with AI skills.
The SkillsFuture website will be redesigned to facilitate ease of finding AI courses that suit the needs and proficiency level of workers.
