- The FY2026 budget had a greater emphasis on AI. With its constraints (natural resources, ageing population, and tight labour market), AI is Singapore's critical strategic advantage. Growing AI use will benefit IT service providers and the data centre ecosystem. The defence sector will benefit from the expected rise in security-related expenditure in the coming years.
- - Read this at SGinvestors.io -
- Last year’s budget focus was on the multiple handouts to households and extra spending on infrastructure. The FY2026 budget made a strategic pivot on AI. It comes from S$37bn in research spending, tax deductions, and AI-related grants, AI transformation across 4 key sectors, the National AI Council, and more AI workforce training.
- - Read this at SGinvestors.io -
Sector snippets
Construction.
- In the marine and process sectors, levies for basic-skilled workers will be raised by S$100 and S$150, respectively (current: S$400-800 / month).
- Full-time foreign workers must be paid at least S$1,800 a month (current: S$1,600). Changes will be implemented from 2028.
Defence.
- Read more at SGinvestors.io.
