Live coverage: Singapore Budget 2026 presented by PM Lawrence Wong

Summary

Prime Minister Lawrence Wong presented Budget 2026, opening with Singapore’s stronger-than-expected 5% growth last year and a moderated outlook for 2026: growth projected at 2–4% and inflation at 1–2%. The Budget sets out a refreshed economic strategy focused on harnessing artificial intelligence (AI) as a national strategic advantage, building a resilient and skilled workforce, supporting families, and strengthening security and sustainability.

Key announcements relevant to employers and HR include the creation of a National AI Council (chaired by PM Wong) concentrating on advanced manufacturing, connectivity, finance and healthcare; a Champions of AI programme to support firm-level transformation and workforce training; AI expenditures qualifying for enhanced tax deductions under the enterprise innovation scheme for YA 2027 and 2028 (capped at S$50,000 per year of assessment); and a Lorong AI pilot co-working hub to convene the AI community.

Other measures: stronger efforts by EDB to attract high-growth companies; enhanced support for internationalisation (up to 70% funding for SMEs and 50% for larger firms), an improved Market Readiness Assistance grant, and continued double tax deduction for internationalisation (200% cap S$150,000). For corporates there is a 40% corporate income tax rebate for YA 2026 and a minimum benefit of S$1,500 for every active company that employed at least one local last year (capped at S$30,000 per company).

Key Points

National AI Council to be established and chaired by PM Lawrence Wong to provide strategic direction across four priority sectors.
Champions of AI programme: tailored enterprise transformation support and workforce training for firms scaling AI.
AI expenditures to qualify for enhanced tax deductions under the enterprise innovation scheme for YA 2027 and 2028 (cap: S$50,000 per YA).
Lorong AI: a pilot co-working hub to convene Singapore’s AI community and encourage scaling beyond pilots.
EDB to intensify efforts to attract high-growth companies; support for internationalisation boosted (up to 70% funding for SMEs).
40% corporate income tax rebate for YA 2026 and minimum S$1,500 benefit for active companies employing at least one local (capped at S$30,000).
Macro outlook: 2025 growth was 5%; 2026 projected at 2–4% with inflation 1–2%.

Context and relevance

This Budget signals a clear pivot to making AI central to national economic strategy while protecting jobs and supporting firms to scale. For HR and business leaders, the measures matter because they combine funding and tax incentives with workforce training commitments — a package designed to accelerate digital transformation while cushioning labour-market impacts. SMEs and multinational employers should note enhanced internationalisation support, tax rebates and specific incentives that could influence hiring, training budgets and strategic investment decisions.

Author style

Punchy: This coverage zeroes in on the parts of Budget 2026 that affect jobs, skills and firm competitiveness. If you care about workforce planning, AI adoption or SME growth, the details here are directly actionable — read them closely.

Why should I read this?

Short version: this Budget bets on AI and workforce readiness. If you’re in HR, tech or run an SME, it tells you where funding and tax breaks will land, and what to do next. We’ve read the speech so you don’t have to—skim the key measures and decide what to act on.