'No longer experimental phase': Firms react to Singapore's AI push in Budget 2026

Singapore plans to tap into the potential of artificial intelligence (AI) by encouraging its timely adoption, several firms told AsiaOne on Friday (Feb 13).

It comes after Prime Minister Lawrence Wong announced a slew of initiatives in his Budget 2026 speech on Thursday (Feb 12) — part of a nationwide push for businesses, workers and students to harness AI as a strategic advantage.

PM Wong, who unveiled a record $154.7 billion budget, said: "AI will change how we work. The pace of change can be unsettling, especially when livelihoods are at stake. 

"We will press ahead with AI because we must. At the same time, we will put in place strong support to help our workers adapt and progress, because we will take care of our own."

Adeline Liew, country business leader of Alcatel-Lucent Enterprise in Singapore, said that the immediate challenge for businesses is ensuring that there are resources in place to adopt AI in their operations.

"The performance is directly tied to the reliability of the infrastructure that supports them. Without robust connectivity, secure and high-performance networks, investments into AI risk underdelivering on gains to productivity and service improvements," she said.

Under the expanded Enterprise Innovation Scheme, businesses will receive annual tax deductions of 400 per cent on qualifying AI expenses — capped at $50,000 per year — for the year of assessment 2027 and 2028.

The Productivity Solutions Grant, which supports businesses to adopt IT solutions, will also be expanded to include a wider range of AI-enabled solutions.

Andrew Kay, director of systems engineering at cybersecurity firm Illumio, said that making AI accessible across industries and ensuring the workforce is ready for it is a "smart move". 

"Ready is not just about training or regulation, it also means making sure you are in a position to secure your own AI infrastructure from attacks and unauthorised use," he said.

PM Wong announced that the TechSkills Accelerator — which helps mid-career workers transition into tech roles as well as ensure existing tech workers remain relevant — will be expanded to support AI skills training in non-tech occupations.

The scheme will start with accountancy and legal professions before being progressively expanded to other sectors.

Singaporeans who take up selected AI training courses listed on the MySkillsFuture portal will also receive six months of free access to premium versions of AI tools.

On these support for workers to build AI literacy, Paul Carvouni, senior vice-president and general manager of Salesforce Asean, said that it shows that the Government is committed to keeping people at the heart of progress.

"Singapore possess the inherent talent advantage required to capture the AI opportunity. Those who best augment their skills will be the one who secure career longevity," he added.

Overall, Carvouni said that this year’s Budget shows that Singapore is moving beyond the “experimental phase” with AI.

"Budget 2026 gives us the vision and tools to turn technological potential into national progress and business impact. The winners will be those who view AI as a force multiplier for people," he added.

A day after PM Wong’s Budget speech, the National Trades Union Congress (NTUC) announced a new initiative where its members to receive up to 50 per cent off subscription costs for eligible artificial intelligence tools that can support tasks like content creation and writing.

AI-Ready SG will be rolled out in the first half of the year and piloted for two years. The subsidy will complement training pathways, which NTUC said will help workers build their AI-related skills based on their existing skill level, job and sector.

AI will also be used in a new career mentorship programme to pair professionals, managers and executives with mentors who align with their career goals. 

For more on Budget 2026, visit our microsite.

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chingshijie@asiaone.com