Singapore’s economic roadmap for the year ahead has been laid out, with a strong emphasis on artificial intelligence, workforce resilience and targeted financial support for households. In delivering the first Budget of the new term, Prime Minister and Finance Minister Lawrence Wong positioned the S$154.69 billion plan as a strategic response to a rapidly shifting global order and intensifying economic competition.
He stressed that Singapore cannot afford complacency in a world marked by geopolitical uncertainty and structural challenges such as an ageing population and tighter labour market conditions. The Government’s ambition is to sustain growth at the upper end of the 2 to 3 per cent range over the coming decade, ensuring that expansion translates into quality jobs and rising incomes for Singaporeans.
Artificial intelligence sits at the heart of this transformation strategy. A new national AI council, chaired by the Prime Minister, will coordinate efforts across sectors. Dedicated AI missions will target advanced manufacturing, digital connectivity, financial services and healthcare — industries seen as critical to long-term competitiveness in areas such as fintech innovation, smart automation and data-driven medical technology.
Expanded business grants, including enhancements to the Enterprise Innovation Scheme and Productivity Support Grant, will now cover AI-related projects. Workers keen to upskill can expect a revamped SkillsFuture platform with improved access to AI training programmes, alongside six months of complimentary premium AI tools for selected courses.
Financial Support For Households And Families
While long-term transformation is a key pillar, the Budget also addresses immediate cost-of-living pressures. Eligible Singaporeans will receive between S$200 and S$400 in cash payouts later this year. In addition, households can expect up to S$570 in U-Save rebates to offset utilities bills, easing monthly expenses amid inflation concerns.
Further support arrives in the form of S$500 in CDC vouchers for all Singaporean households in early 2027. Families with children aged 12 and below will receive S$500 in Child LifeSG credits, while income thresholds for preschool and student care subsidies will be revised to widen eligibility.
Retirement adequacy has also been given attention. A new life-cycle investment option will allow CPF members to potentially grow their savings more effectively. Those aged 50 and above who fall below the Basic Retirement Sum will receive CPF top-ups of up to S$1,500.
Workforce Reforms And Business Growth Measures
To streamline career development support, SkillsFuture and Workforce Singapore will merge into a single agency operating under both the Ministry of Education and the Ministry of Manpower. The consolidated body aims to function as a one-stop hub for skills training, career advisory services and job placement assistance.
Employment policies will be adjusted to strengthen support for lower-wage workers. The Local Qualifying Salary will rise to S$1,800, while minimum salary thresholds for new Employment Pass and S Pass applicants will also increase, reinforcing workforce standards.
On the enterprise front, small and medium-sized enterprises expanding overseas will receive up to 70 per cent funding support for eligible internationalisation costs, while larger firms may qualify for up to 50 per cent assistance. The Market Readiness Assistance grant will be enhanced to help companies deepen their presence in established overseas markets.
Under the Research, Innovation and Enterprise 2030 strategy, S$37 billion will be committed to research and development. An additional S$1 billion will strengthen Startup SG Equity, expanding support to growth-stage companies within Singapore’s technology startup ecosystem.
Tax And Security Updates
A 20 per cent rise in tobacco excise duties took effect immediately, reinforcing public health objectives. Meanwhile, the Preferential Additional Registration Fee rebate for eligible vehicles will be reduced to reflect the growing adoption of electric vehicles.
Defence spending will remain at approximately 3 per cent of GDP, with flexibility to increase if security conditions warrant.
In closing, the Prime Minister underscored that national progress depends on collective effort. The Budget, he said, seeks to support citizens in the present while preparing Singapore for a more competitive and uncertain future