Singapore's unwavering commitment to technological leadership took center stage at the Committee of Supply (“COS”) 2026 debates, amid Parliament's budget deliberations. Minister for Digital Development and Information, Josephine Teo, unveiled a suite of groundbreaking initiatives aimed at accelerating artificial intelligence (“AI”) adoption while embedding robust safeguards.
These measures, which form part of the broader National AI Strategy 2.0 refresh, address mounting concerns over AI risks such as bias, misinformation, and cybersecurity threats. For businesses, policymakers, and citizens, this signals a balanced pathway forward: harnessing AI's transformative potential without compromising trust or safety.
National AI Impact Programme
The flagship National AI Impact Programme (“NAIIP”), announced at COS 2026, aims to supercharge AI integration by supporting 10,000 enterprises and training 100,000 workers over three years.[1] Building on the National AI Strategy 2.0, it focuses on making non-tech professionals "AI Bilingual" through enhanced TechSkills Accelerator (TeSA) initiatives, particularly in sectors like accountancy and legal. For enterprises, NAIIP boosts the proportion of AI-enabled solutions under IMDA pre-approvals from 30% to 50%, with grants aiding SMEs, while the Digital Leaders Accelerator Bootcamp (DLAB) equips business leaders to sustain digital transformation.
The NAIIP includes the following components:
- Digital Leaders Accelerator Bootcamp (“DLAB”)
Designed to build business leaders’ capabilities in implementing AI solutions, the DLAB will provide practical training through industry partnerships, including hands-on project development. Further details are expected to be released by IMDA in due course.
- Expanded range of AI solutions supported by grants
IMDA, in collaboration with Enterprise Singapore, has curated pre-approved, market-tested digital solutions. Grant support under schemes such as the Productivity Solutions Grant (“PSG”) will continue to reduce adoption barriers for small and medium-sized enterprises (“SMEs”).
- Enhanced TechSkills Accelerator (“TeSA”) programme
The TeSA initiative will be expanded to equip non-technical professionals with practical AI capabilities, enabling them to integrate AI into domain-specific workflows and improve productivity.
- Sector-specific AI fluency programmes
In partnership with professional bodies such as the Institute of Singapore Chartered Accountants, the Singapore Academy of Law, and the Singapore Corporate Counsel Association, IMDA intends to develop targeted training programmes. These are expected to identify key AI competencies and corresponding training needs, with an anticipated rollout in the first half of 2026.
Model Governance Framework for Agentic AI
A notable development is the introduction of the Model AI Governance Framework for Agentic AI, which provides guidance on the governance of autonomous AI systems capable of reasoning, planning, and acting with a degree of independence.
The framework is structured around four core pillars:
- organizational governance,
- technical safeguards,
- human oversight, and
- end-user enablement.
Why is this important? Because agentic AI has the permission to interact with the systems it exists in and make changes and take decisions. For example, agentic AI used to automate repetitive tasks related to customer service gets access to customer databases. Here, it may make changes to customer information or take decisions like making a payment, which may result in unauthorized or erroneours actions. This is where the above framework allows organisations to establish necessary and meaningful human control and oversight.
Voluntary yet influential, the framework aligns with Singapore's balanced regulatory approach, setting guardrails for innovation without stifling it. COS speeches underscored its role in safe deployment, urging enterprises to adopt it for trustworthy AI scaling.
Enhanced grants
AI tools currently constitute approximately 30% of the digital solutions available on IMDA’s “SMEs Go Digital” platform. The Government has indicated its intention to expand the range of AI-enabled solutions eligible for grant support to better address diverse business needs.
This is expected to facilitate greater access to pre-approved AI tools and support SMEs in adopting such technologies in a cost-effective and scalable manner.
AI “Nutrition Labels” and Transparency Measures
To boost user trust, Digital Development Minister Josephine Teo announced the study of “nutrition labels” for AI applications, akin to food or medicine labels disclosing capabilities, intended uses, and limitations. These labels, tied to the Smart Nation 2.0 and Online Safety Assessment, aim to empower consumers, enhance child protections, and curb misuse like deepfakes or scams.
This initiative complements broader online safety efforts under the Online Safety (Relief and Accountability) Act (“OSRA”), which establishes the Online Safety Commission by June 2026 to tackle harms including AI-enabled harassment and doxxing. By mandating clear disclosures, Singapore seeks to facilitate informed adoption, reducing risks in high-stakes areas like social media and chatbots.
Champions of AI and Infrastructure Boosts
'Champions of AI' programme intends to transform leading companies via AI, alongside AI Missions for sector-specific leadership and the 'Kampong AI' park in One-North. These create ecosystems for testing and scaling AI safely, with factsheets detailing support for R&D and deployment. Tax breaks and Productivity Solutions Grant enhancements further de-risk adoption for SMEs.
Conclusion: A Calibrated Approach to AI Governance
The initiatives introduced at COS 2026 reflect a coordinated effort to integrate AI adoption with governance and risk management. By combining financial incentives, capability-building, and regulatory guidance, Singapore continues to position itself as a jurisdiction that supports innovation while maintaining appropriate safeguards.
For businesses, these developments underscore the importance of not only adopting AI solutions, but doing so in a manner that is aligned with emerging governance frameworks and regulatory expectations.
National AI Impact Programme: Empowering Enterprises and Workers to Transform with AI, https://www.mddi.gov.sg/newsroom/national-ai-impact-programme--empowering-enterprises-and-workers-to-transform-with-ai/ ↑