Monday Wrap: National AI push, equities soar, and CEOs stay upbeat
The Budget includes a $1.5b boost to the Financial Sector Development Fund.
Last week in Singapore Business Review, Prime Minister Lawrence Wong outlined new national artificial intelligence (AI) missions, Singapore equities reached a 10-year high, and CEOs remain positive about the economy despite trade uncertainties.
Singapore’s Budget 2026 places AI at the forefront, alongside enhanced business support measures, including a $1.5b top-up to the ‘Financial Sector Development Fund’ to strengthen capital markets and innovation.
The country ranked amongst Asia-Pacific’s top three equity markets in 2025, posting a 34% return within the FTSE Asia Pacific Index as stronger earnings forecasts and attractive valuations drove the rally.
A report revealed that a majority of CEOs are optimistic about the local economy over the year, despite growing trade tensions and market uncertainties.
However, industry leaders are calling for more support to scale AI responsibly, as 40% of businesses are held back by security concerns, with SMEs needing funding for better data systems and leadership training.
The Economic Development Board expects that investment commitments secured in 2025 will generate 15,700 jobs and add $18b in value over the next five years.
Two-thirds of Singaporeans are satisfied with the government’s performance. However, ‘cost of living’ and ‘housing affordability’ were identified as the weakest-performing areas.
Lastly, Singapore startups recorded strong equity funding in the second half of 2025, with late-stage deals rising to 16 worth $1.99b, up from seven deals totaling $390m in the first half.