Prime Minister (PM) and Minister for Finance Lawrence Wong delivered Singapore’s FY2026 Budget Statement on 12 February 2026.
Speaking in Parliament, he foresees that challenging times lay ahead given the strain on the global order as countries increasingly pursue independent agendas and show less commitment to collective agreements.
Listen to a roundup of Budget 2026 on our podcast episode here!
Last year, there were fears that new US tariffs would trigger a global slump. Although this did not occur, PM said that Singapore may not be so fortunate in 2026.
Nevertheless, he emphasised that “every Singaporean who is willing to adapt and learn will continue to secure a good job and earn a good living.”
“To succeed in this new reality, we must prepare both our future workforce, and those already working today.”
Here’s a closer look at what was mentioned in the Budget Statement that matters to Singaporean workers and jobseekers.
AI literacy to be prioritised at the workplace
The government will help workers to navigate the transition to an AI-enabled economy by providing training, tools, and new opportunities. They will also help workers use AI to focus on high-quality tasks in their careers.
PM Wong cited accountants as examples of this AI-enabled shift, noting how they can now use AI to automate large parts of data consolidation, preparation, and book-keeping.
“This allows them to move up the value chain — spending more time on client advisory, forensic work, and complex analysis, where professional expertise and trust matter most,” he said.
The goal is to build up practical AI capabilities across sectors, starting with the accountancy and legal professions, before progressively expanding to other fields, he added.
Institutes of Higher Learning (IHLs) also have an important role in strengthening AI literacy for students and working adults.
PM Wong added that beyond sectors, individual workers should also take the initiative to pick up AI-related skills.
He acknowledged that it is not always easy to sift through related courses and identify which ones are worth pursuing in regard to one’s career.
To address this challenge, he announced plans to redesign the SkillsFuture website to make AI learning pathways clearer and easier to access so that Singaporeans can find the right courses for their work needs and proficiency levels.
In addition, those who sign up for selected courses will also get six months of free access to premium AI tools to apply what they learn.
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Increasing Progressive Wage Model (PWM) support for lower-waged local workers
PM Wong highlighted the importance of preventing economic and social inequality from becoming entrenched in Singapore, a trend observed in many other advanced economies.
“That is why the government has and will continue to lean against these trends, and strive to ensure that the fruits of growth are shared widely and fairly,” he said.
“Every Singaporean, regardless of where they start in life, should have a fair chance to pursue their aspirations and realise their full potential.”
“In this Budget, we will continue to strengthen support for lower-wage workers.”
To achieve this, PM Wong announced that the Local Qualifying Salary (LQS) for full-time local employees will be raised from S$1,600 to S$1,800.
This salary threshold applies to firms that hire foreign workers and forms part of broader efforts to strengthen support for lower-wage workers.
In addition, it was announced that training support for PWM will be enhanced.
PM Wong said: “The PWM goes beyond a simple flat minimum wage and instead links pay increases to skills, productivity, and career progression — and it is delivering results.”
The government will raise co-funding under the Progressive Wage Credit Scheme (PWCS) from 20% to 30% and extend the scheme by two years to 2028, he added.
From 2027, firms will also need to raise the minimum wage increase from S$100 to S$200 to qualify for PWCS support.
Supporting Singaporean workers in their lifelong learning journey
PM Wong noted that in 2025, additional support under the Workfare Skills Support (WSS) was given to workers who take up long-form training courses.
He said: “We will go further to enhance the basic tier of the scheme, and increase the hourly allowance for workers who upgrade their skills.”
“We will also do more to support lifelong learning for all Singaporeans through SkillsFuture.”
In addition, he noted that Singapore’s training landscape has transformed since the launch of SkillsFuture more than a decade ago, with lifelong learning now a core part of the system.
Today, all autonomous universities, polytechnics and Institutes of Technical Education (ITEs) have made lifelong learning a part of their mission.
PM Wong cited Singapore’s two largest universities — the National University of Singapore (NUS) and Nanyang Technological University (NTU) — on how they “offer flexible pathways for alumni and adult learners to take modular courses, earn stackable credits, and progressively build these into recognised qualifications.”
In 2025, more than 600,000 individuals took up training with SkillsFuture support, offered by IHLs and private training providers.
While SkillsFuture Singapore (SSG) and the Ministry of Education (MOE) have been focused on skills, while Workforce Singapore (WSG) and the Ministry of Manpower (MOM), have been engaging employers and helping job seekers find jobs.
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In an era of faster technological change and more frequent job transitions, PM Wong said that stronger alignment is needed, and our systems must work more seamlessly together.
As such, taking “a decisive step forward”, SSG and WSG would be merged into a new statutory board, to be jointly overseen by MOE and MOM.
This new agency will be a one-stop shop for skills training, career guidance, and job matching services, said PM Wong.
For workers and jobseekers, this translates to more seamless support across career planning, upskilling, job matching, and career transitions.
For employers, the support received will be more integrated, covering workforce planning, job redesign, hiring, and workforce development.
PM Wong shared that the Ministers for Education and Manpower will elaborate on this at the upcoming Committee of Supply in Parliament in March.
More help for mid-career, senior, and disabled workers
Senior workers
Senior workers will receive continued support to stay active in the workforce, with the Senior Employment Credit now extended to end-2027, said PM Wong.
Under this scheme, the government provides wage offsets to help employers that employ eligible Singaporean senior workers.
Another initiative for senior workers will see the government implement the next stage of planned CPF contribution rate increases in 2027. The government will also continue to provide employers with the CPF Transition Offset (CTO) to cover half of the increased employer contributions for next year.
Mid-career workers
More than 60,000 Singaporeans aged 40 and above have benefitted from the SkillsFuture Level-Up Programme (SLUP) since its launch in 2024, said PM Wong.
The programme, which supports mid-career workers, will be extended to reach more Singaporeans.
In addition, from March, the Mid-Career Training Allowance will be extended to part-time learners, and coverage will be expanded to include more industry-relevant courses.
Persons with disabilities
The government is reviewing how it can provide more meaningful support for persons with disabilities, PM Wong announced, with Minister of State Goh Pei Ling leading a task force on this matter.
PM Wong concluded that the aim of Singapore’s FY2026 Budget is to “support Singaporeans today, prepare our society for tomorrow, and enable us to navigate this changed world with confidence”.
“Together we will secure a stronger, fairer, and brighter future for all.”
To learn more about what Budget 2026 has for Singapore employers, click here.
Image Credits: MDDI
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