Budget 2026: AI can be ‘strategic advantage’ for Singapore if harnessed well
Clear rules must be set to ensure the technology is applied responsibly and safely, and benefits shared widely
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[SINGAPORE] Singapore’s advantage in artificial intelligence (AI) does not lie in building the largest frontier models, but in deploying the technology effectively, responsibly and at speed, said Finance Minister and Prime Minister Lawrence Wong during his Budget speech on Thursday (Feb 12).
“Singapore can be a trusted hub where companies and researchers come together to develop, test and deploy impactful AI solutions – and do so faster and more coherently than many larger countries,” said PM Wong.
This is already happening, he noted. At present, more than 60 companies, including Google and Microsoft, have set up AI Centres of Excellence in Singapore.
As a result, these investments have created a “growing number of good jobs for Singaporeans” in AI research, engineering and deployment, he said.
If harnessed well, AI will be a “strategic advantage for Singapore”, allowing the Republic to overcome structural constraints such as limited natural resources, a rapidly ageing population and a tight labour market.
“We must act with clarity and resolve,” he added. “AI is a powerful tool – but it is still a tool. It must serve our national interests and our people.”
This means setting clear rules to ensure AI is applied responsibly and safely, and that its benefits are “shared widely across society”.
This is particularly important as AI is advancing at a remarkable pace, bringing with it “deep concerns” alongside its promise to raise productivity, unlock new discoveries, and “transform lives in ways we are only beginning to understand”.
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“Workers worry that AI will displace jobs. Societies worry about misinformation, bias and the ethical use of powerful technologies,” he said.
“These anxieties are real – and we must confront them squarely.”
But fear cannot be Singapore’s response, he cautioned. “If we allow uncertainty to paralyse us, we will fall behind in a world that is moving rapidly ahead.”
For more of BT’s Budget 2026 coverage, go to bt.sg/budget26
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