On 12 February 2026, Budget 2026 was delivered by Prime Minister and Minister for Finance, Mr Lawrence Wong. This was the government’s first Budget in its new term and comes at the start of the post-SG60 phase.
Budget 2026 is designed to refresh the strategies that have given Singapore an important and tangible competitive advantage over the years, and strengthen our social compact. This involves supporting Singaporean workers of all ages, revising Foreign worker policies and protecting security and sustainability.
Here are the key points for Enterprises on these topics, with expert commentary from business leaders.
Building practical AI capabilities in Singapore’s workforce
PM Wong reaffirmed his support for Singaporeans who are willing to adapt and learn. To prepare the future workforce and those already working the government will focus on helping them build practical AI capabilities. The SkillsFuture website will be redesigned to make AI learning pathways clearer and easier to access — so that Singaporeans can quickly find courses relevant to their work needs and proficiency levels.
Six months of free access to premium AI tools will also be provided to Singaporeans who take up selected AI training courses to encourage them to practise, experiment, and apply what they have learnt.
Ministers of the MDDI, MOE, MOM, and MTI will provide more details at the Committee of Supply.
Karen Ng, Regional Head of Expansion – Enterprise – North and South Asia, Deel, commented that “It’s encouraging to see the government putting more emphasis on helping both businesses and workers make a smoother transition into an AI‑enabled economy.
“For employers, the next step is not just adopting new tools, but redesigning roles so junior staff spend less time on repetitive work and more on problem‑solving, collaboration and learning that builds future leaders.
“For mid‑career workers, the real unlock will be support that links AI training to specific role changes, internal mobility and clearer progression, rather than treating “upskilling” as an abstract requirement.
“When policy support and company practices move in tandem, Singapore can strengthen its leadership pipeline while enabling workers at every career stage to transition into higher-value, AI-complementary roles.
Haresh Khoobchandani, Vice President, APAC & Japan, Autodesk supported the measures, saying that “The new six-month complimentary access to premium AI tools for trainees who take up select AI courses is a practical answer to the risks of AI being a disruptor if talent development doesn’t keep pace.
“This will provide students with relevant hands-on experience that equips them with the skills to enter the workforce as practitioners of AI, not just observers.”
Andrew McCarthy, GM of ANZ, SEA and India, Notion, pointed out that while PM Wong framed AI as a strategic advantage for Singapore, the country is still “faced with a critical challenge.
“[Notion] research shows 70% of Singaporean workers find AI tools lack company context, while the same (72%) spend time editing generic AI outputs. The issue isn’t AI capability—it’s increasing busywork due to fragmented systems. The priority now is giving AI the context to produce work teams can actually use.
“As the Productivity Solutions Grant expands to support AI-enabled solutions, the real opportunity lies in consolidating institutional knowledge within a connected workspace.
“Budget 2026 provides the incentives. Now businesses must use them strategically: consolidate fragmented systems into unified workspaces where AI has the context to actually finish work.”
Building a resilient and skilled workforce
Reaffirming that “Singaporeans, and especially [its] workers, are at the centre of everything we do,” PM Wong emphasised the governments continued efforts to ensure that “fruits of growth are shared widely and fairly”, at least among Singaporeans.
“Every Singaporean, regardless of where they start in life, should have a fair chance to pursue their aspirations and realise their full potential,” he said.
To strengthen support for lower-wage workers, the government will uplift lower wage workers by:
- raising the LQS for full-time local employees from $1,600 to $1,800.
- enhancing Progressive Wage Credit Scheme (or PWCS) help businesses defray some of the cos, raising the PWCS co-funding support for this year, from 20% to 30%.
- the PWCS will also be extended for two more years, to 2028. From next year, the minimum wage increase to qualify for PWCS support will be raised from $100 to $200.
- enhance the basic tier of the Workfare Skills Support scheme increase the hourly allowance for workers who upgrade their skills.
It will also strengthen assurance for Mid-Career workers and Seniors by:
- enhancing the Level-Up programme by extending the Mid-Career Training Allowance to include those who take up part-time training and expanding its coverage to include more industry-relevant courses.
- helping senior workers to plan ahead for later-stage careers, supporting them in refreshing their skills, and equipping employers to design age-friendly jobs and multi-generational workplaces.
- extending the Senior Employment Credit to end-2027, to support employers who continue to employ senior workers.
The government will update Foreign Worker policies by:
- raising the Employment Pass (or EP) minimum qualifying salary for new applicants from $5,600 to $6,000 from January 2027, and $6,200 to $6,600 for the financial services sector which has higher salary norms. This is justified as maintaining the quality of the EP holders, as local wages rise.
- raising the qualifying salaries for S Pass holders: from January 2027, the minimum qualifying salary for new S Pass applicants will be raised from $3,300 to $3,600, and $3,800 to $4,000 in the financial services sector.
- adjusting Work permit levies from 2028, raising those for basic-skilled workers in the Marine and Process sectors by $100 and $150, respectively
- and simplify the current tiered levy structure in the Manufacturing and Services sectors, also from 2028.
PM Wong also announced that SkillsFuture Singapore and Workforce Singapore will be merged into a new statutory board jointly overseen by MOE and MOM. “This goes beyond making an organisational change,” said PM Wong.
“It is about continually strengthening our system of lifelong learning and career support, so Singaporeans can continue to adapt, grow and realise their full potential. In a world where change is constant, we must remain a society that never stops learning — and never stops striving to do better.”
Niko Walraven, Area VP – APAC, Neat, welcomed this merger, saying that “, by merging SkillsFuture and Workforce Singapore into a new statutory board to focus on future-ready skills such as practical AI capabilities, the government is directly integrating Singapore’s skills and jobs ecosystem.
“Equipping workers with these skills ensures that hybrid work doesn’t lead to proximity bias, but rather to a more inclusive, equitable, and human-centric workspace where every voice at the table is heard clearly.”
Protecting Security and Sustainability
Singapore’s cybersecurity capabilities are to be strengthened. This goes beyond defending government systems: in recognition of private sector companies’ critical role in delivering essential services, PM Wong said that deepening partnerships with industry are planned, “specially owners of critical information systems.” This will improve Singapore’s preparedness and strengthen its collective cyber defence.
PM Wong also acknowledged the growing impact of climate change, already felt as “higher temperatures, heavier rainfall, and more frequent extreme weather events.”
For businesses, the government will extend the Energy Efficiency Grant and support for green loans under the Enterprise Financing Scheme, to help firms invest in energy-efficient and sustainable solutions.
