Singapore’s Lawrence Wong Unveils 2026 Budget: AI and Financial Market Growth Take Center Stage

Singapore bets big on AI and finance in its latest national blueprint.

Deputy Prime Minister Lawrence Wong just dropped the 2026 budget—and it's a clear signal. The city-state is doubling down on artificial intelligence and turbocharging its financial markets. Forget incremental change; this is a strategic pivot.

The AI Playbook

Massive public funding is being funneled into AI infrastructure and talent development. The goal? To cement Singapore's position as a global node for AI research and commercial deployment. Think next-gen data centers, compute resources, and grants for startups pushing the boundaries of machine learning.

Financial Markets: Open for (More) Business

The budget outlines sweeping measures to deepen capital markets, streamline regulations for digital assets, and attract more high-value financial activity. It's a direct play for a larger slice of the global finance pie—with a keen eye on the burgeoning digital economy. Traditional banks might want to check their rearview mirrors.

The Bottom Line

This isn't just a spending plan; it's a declaration of intent. Singapore is leveraging its fiscal muscle to build the economic engines of the next decade. For crypto and fintech, the regulatory environment just got a lot more interesting—and potentially lucrative. Of course, all this public investment assumes the private sector will follow the government's lead without the usual bureaucratic tango. A bold bet, indeed.

A smaller but steady surplus

Even with a lower surplus, the government says it is on solid ground. The projected surplus works out to roughly 1% of the country’s GDP, enough to fund targeted programmes without drawing on the country’s reserves. Singapore has only drawn on those reserves twice before: once during the 2008 global financial crisis and again during the COVID-19 pandemic.

With trade tensions and rapid technological change shaking up industries, Wong said the 2026 budget is focused on making Singapore more competitive over the long run.

A large part of that plan centres on getting more companies and workers to use AI. Wong announced the creation of a “national AI council” that he will personally chair. “AI is a powerful tool, but it is still a tool. It must serve our national interests and our people,” he said. The council will oversee four focus areas: advanced manufacturing, connectivity, finance, and healthcare, with the aim of pushing Singapore toward becoming a leading AI hub.

To help businesses make the shift, the government is launching a “Champions of AI” programme. It will offer tailored support to companies looking to use AI to change how they operate, covering both business transformation and staff training. Wong said companies that succeed under the programme WOULD set standards for their industries and push others to follow.

Firms can also benefit from an expansion of the Enterprise Innovation Scheme, which already gives businesses a 400% tax deduction on qualifying costs. AI spending will now count under the scheme, though there is a cap of SG$50,000 (about $39,654) per year for 2027 and 2028.

On the worker side, Wong said every Singaporean can take steps to learn AI skills. The government will redesign its SkillsFuture website to make it easier for people to find AI courses that match their job needs and skill level. SkillsFuture gives Singaporeans credits to sign up for courses starting at age 25. Wong also acknowledged that while basic AI tools are free, more advanced features often come with a price tag. To help with that, people who complete selected AI training courses will get six months of free access to premium AI tools. “This will allow them to practice, experiment, and apply what they have learnt,” he said.

Boosting the stock market

On the financial markets side, the government announced it would add SG$1.5 billion (about $1.18 billion) to the Financial Sector Development Fund. Set up in 1999, the fund hands out grants to build Singapore up as a global financial centre.

The new injection follows a SG$5 billion Equity Market Development Programme announced in 2025. That programme has helped the Straits Times Index climb 22.67% last year, its best annual performance since 2009. Of the original SG$5 billion, SG$4 billion has already been placed with nine asset managers, with the rest due to follow in the second quarter of 2026.

The government also plans to make it easier for fast-growing companies to list on the stock exchange and to set up a dual-listing LINK between the Singapore Exchange and Nasdaq.

“These measures will enhance the depth and vibrancy of our public equities market and provide more pathways for enterprises to grow and scale from Singapore,” Wong said.

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