Singapore’s $154.7b Budget 2026 Puts AI, Workforce and Families at Core

Singapore has unveiled a record $154.7 billion Budget aimed at strengthening competitiveness, supporting families, and positioning the nation as a leader in artificial intelligence (AI). Prime Minister and Finance Minister Lawrence Wong announced the measures on Feb 12, describing the Budget as the first step in refreshing national strategies to navigate global uncertainty.

A central focus is AI, with the establishment of a National AI Council to drive adoption across businesses, education, and the workforce. Enterprises will receive enhanced support to expand overseas, while students and workers will be encouraged to build AI literacy and skills through SkillsFuture and other programmes. Wong stressed that Singapore must deploy AI responsibly and decisively to maintain its edge.

AI and Workforce

The Budget also expands social support. Families will benefit from $500 Child LifeSG Credits per child, higher subsidies for preschool and student care, and a Central Provident Fund top-up of up to $1,500 for older Singaporeans with insufficient retirement savings. Additional measures include CDC vouchers, U-Save rebates, and a Cost-of-Living Special Payment to ease household pressures.

For workers, schemes to raise wages for lower-income employees and allowances for mid-career training will be strengthened. Foreign worker policies will be tightened, with higher qualifying salaries and levies to ensure Singaporeans remain central to the workforce.

Despite projecting slower growth of 2–4 per cent in 2026, Singapore expects a fiscal surplus of $8.5 billion. Wong emphasized that sound public finances allow decisive investments in key sectors such as semiconductors, aerospace, and biomedical sciences.

He concluded by urging Singaporeans to build a “we first” society, reinforcing bonds through giving, volunteering, and collective responsibility. The Budget, he said, is designed to secure good jobs, strengthen social cohesion, and prepare the nation for long-term resilience.

Business News