Weak data foundations could stall Singapore's 'Global AI Hub' vision: analysts

Enhancements include higher MRA grants and expanded DTDi tax deductions.

Budget 2026 signals Singapore’s ambition to become an AI-powered economy, but industry experts call for the need for “strong foundations” to help companies effectively scale their adoption.

Prime Minister Lawrence Wong laid out in his 2026 budget speech the government’s initiative to enhance AI adoption amongst sectors. This includes the creation of a National AI Council that will oversee plans to launch a set of AI missions across advanced manufacturing, connectivity, finance and healthcare.

“Crucially, these initiatives recognise that sustainable AI impact will not come from experimentation alone, but from enterprises investing in strong, trusted AI foundations — where data is connected, secure, and governed — enabling organisations to scale innovation with confidence and unlock real business value from enterprise AI,” said Kenneth Poh, country manager of Singapore and the Philippines, NetApp.

Whilst the Prime Minister’s leadership of the council shows the government’s commitment to making AI central to the economy, adoption alone is not enough, said Kunal Jha, regional director for Asia at Netskope.

“Instilling excellent AI governance standards is an essential component of driving responsible adoption because bad governance can negate the benefits of AI,” he said.

Raen Lim, APJ managing director at Qualtrics, added that AI adoption hinges on public trust, noting that whilst 68% of consumers see AI positively, only 40% trust organisations to use it responsibly.

“If Singapore wants to be a ‘trusted AI hub’, the next step is to treat trust like national infrastructure, which requires measurable governance,” Lim said.

Meanwhile, effective cross-border financial infrastructure is emerging as a critical enabler for Singapore businesses seeking to expand overseas, particularly in light of Budget 2026’s new internationalisation measures.

“Budget 2026 reinforces Singapore’s ambition to scale globally competitive, innovation-driven businesses,” said Nagesh Devata, SVP of APAC at Payoneer. “As companies expand across markets, they need financial infrastructure that matches their complexity.”

The budget introduced enhancements to the Market Readiness Assistance (MRA) Grant, expanded support under the Double Tax Deduction for Internationalisation (DTDi) Scheme, increased grant support for internationalisation, and the launch of the Champions of AI Programme.

Small and medium-sized enterprises (SMEs) can now receive up to 70% support for internationalisation initiatives, whilst non-SMEs can receive up to 50%, Prime Minister Lawrence Wong said in his Budget 2026 speech.

The “Double Tax Deduction for Internationalisation” scheme will now allow qualifying activities to claim automatic 200% tax deductions, with the deduction cap increased from $150,000 to $400,000.

Businesses looking to take advantage of these measures need the right cross-border financial infrastructure in place, Payoneer said.