On Feb. 12, 2026, Prime Minister Lawrence Wong used Singapore’s Budget speech to set a clear priority for the city-state’s next phase: accelerate the adoption of artificial intelligence while shoring up defence capabilities.
Wong devoted a large portion of his address to how AI can be adopted across the economy, signalling that the technology is being treated as a strategic national priority rather than a niche experiment. At the same time he emphasised the need to strengthen Singapore’s defence posture as leaders confront what he described as years ahead “beset by uncertainties.”
The Budget also projects a healthy fiscal position, with a forecast surplus for the coming fiscal year roughly equivalent to 1% of GDP. That buffer, Wong implied, gives the government room to invest in new capabilities while managing risks from a shifting global environment.
Taken together, the speech framed Budget 2026 as a balancing act: harnessing the promise of AI to boost productivity and future-readiness, while maintaining the resources and resilience needed to navigate geopolitical and economic uncertainty. For businesses, workers and policymakers in Singapore, the message was plain—prepare for a future where technology and national security are deeply intertwined.









