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Singapore Artificial Intelligence

Singapore’s commitment to Artificial Intelligence (AI) and positioning itself as a global AI hub presents significant commercial opportunities for U.S. firms across AI infrastructure, cloud services, data centers, advanced manufacturing, healthcare, financial services, AI testing, and workforce training.

AI now sits at the center of Singapore’s economic strategy, as outlined in the 2026 budget. 

Experts expect AI to drive economic growth toward the upper end of the 2-3 percent annual average. A National AI Council, chaired by the Prime Minister, will be established to lead Singapore’s AI agenda. The Council will set strategy, create sandboxes, and oversee AI initiatives in connectivity, advanced manufacturing, healthcare, and finance.

Singapore has also launched numerous AI-related training programs and support schemes that create opportunities for both local firms and U.S. AI companies partnering with Singapore-based clients. Key initiatives include:


•    The “Champion of AI” Programme which will help companies transform their businesses through AI, including enterprise transformation and workforce training.  
•    The Enterprise Innovation Scheme to help cover AI-related expenses, offering 400% tax deductions for fiscal years 2027 and 2028, up to S$50,000 per year. The Inland Revenue Authority of Singapore (IRAS) will release more details by mid-2026.
•    The Productivity Solutions Grant to support a broader range of digital and AI solutions. 
•    The TechSkill Accelerator to initially provide legal and accountancy professionals with AI training, with plans to expand to other sectors. 
•    The Artificial and Data Analytics (AIDA) grant, part of the Financial Sector Technology and Innovation (FSTI) scheme, to promote AIDA adoption and strengthen the ecosystem by specifically catering to projects that focus on improving decision making and/or generating better insights. 
•    And lastly, a larger AI park will be developed to foster innovation and collaboration.

Over 60 companies, including Google and Microsoft, have already established AI Centres of Excellence. Over S$1 billion (about US$790 million) has been allocated from 2025 to 2030 under the National AI Research (NAIRD) plan, focusing on fundamental and applied AI research and talent development.

Singapore currently has 1.4 GW of data center capacity, with an additional 300 MW planned between 2024 and 2026. In December 2025, Singapore announced a 200 MW call for applications (DC-CFA2) and plans for a new large-scale data park on Jurong Island with a potential capacity of 700 MW. The Johor-Singapore Special Economic Zone (JS-SEZ) agreement is resulting in Johor positioning itself as a hub for hyperscalers and colocation providers, with planned loads exceeding 1,770 MW.

Singapore does not see a need for broad AI legislation, preferring to focus on shaping AI deployment. For example, its Infocomm Media Development Authority (IMDA) launched GPT-Legal, an LLM trained on Singapore’s legal corpus, which it is provided free to local law firms to encourage adoption and standardization. IMDA’s AI Verify Foundation is leading the development of a private sector market for AI testing tools.

U.S. AI companies interested in the Singaporean market should work with their clients/partners to tap on AI grants/schemes available.  For more information contact Commercial Specialist Amelia Yeo.