Singapore continues to position itself as a leading hub for
artificial intelligence innovation. In February 2026, Prime
Minister Lawrence Wong
announced the establishment of a National AI Council to
oversee "AI missions" aimed at transforming four core
sectors: advanced manufacturing, connectivity, finance and
healthcare. These sectors combine high-volume workflows with
high-stakes environments demanding strong governance. Further, to
encourage SMEs to accelerate AI adoption, the
Government's
Enterprise Innovation Scheme, originally meant to encourage
businesses to engage in research and development, innovation, and
capability development activities, will be expanded to permit
businesses to claim 400 per cent tax deductions on qualifying AI
expenditures, capped at S$50,000 (US$39,600) annually for 2027 and
2028.