Singapore Budget 2026: WSG-SSG Merger, Free AI Tools & What It Means for You

Published: February 16, 2026
by | Career Development, SkillsFuture

header banner for singapore budget 2026 with human elements

 

Singapore Budget 2026 marks a defining moment for the nation’s training and workforce landscape.

Prime Minister Lawrence Wong announced a historic restructuring of Singapore’s skills and employment ecosystem, alongside bold new investments in AI adoption, mid-career support, and enterprise transformation.

At @ASK Training, we’ve distilled the announcements into the updates that actually matter to working professionals, lifelong learners, and employers.

Here is your clear, practical guide to Budget 2026.

1. WSG and SSG to Merge: Strengthening the Jobs-Skills Link

The announcement:

Workforce Singapore (WSG) and SkillsFuture Singapore (SSG) will be merged into a single new statutory board, jointly overseen by the Ministry of Manpower (MOM) and the Ministry of Education (MOE).

What is changing:

Currently, SSG accredits courses and administers SkillsFuture credits. WSG manages career conversion programmes, hiring incentives, and job matching. The merger brings both functions under one agency.

What this means:

  • Training and employment will become more integrated. The same agency that helps fund your course may also help connect you to jobs that need those skills.
  • Course relevance will increasingly be measured by employment outcomes and wage progression.
  • No immediate disruption—both agencies continue current operations until the new board is ready.

What to watch for:

  • How course accreditation criteria may shift.
  • How funding applications and claims processes may be streamlined.

2. SkillsFuture Level-Up Programme: Expanded Support for Mid-Career Learners

The announcement:

More than 60,000 Singaporeans aged 40 and above have benefited from the SkillsFuture Level-Up Programme since its launch in 2024. The programme will now be widened.

Key changes from March 2026:

  • Mid-Career Training Allowance extended to part-time learners: Working adults who cannot commit to full-time training can now receive financial support while studying part-time
  • Coverage expanded to include more industry-relevant courses: Additional training programmes will qualify for mid-career subsidies

What this means:

If you are 40 or above, the barrier of taking time off work to train has been significantly lowered. You can upskill on your own schedule and still receive financial support.

What to watch for:

The expanded list of eligible courses. New allowance rates for part-time learners.

3. National AI Push: Training Support for Individuals

The announcement:

Several measures to help Singaporeans build AI skills.

What is changing:

1. Six months of free premium AI tools

  • Learners who enrol in selected AI courses will receive six months of complimentary access to premium AI tools.
  • The rationale: Learning should translate into practice. Since advanced AI models typically require paid subscriptions, this removes the cost barrier to hands-on application.

2. Redesigned SkillsFuture website

  • The government acknowledged it is “not always easy to sift through courses and identify which is most relevant.”
  • The SkillsFuture portal will be redesigned to show clearer AI learning pathways, matched to your industry and proficiency level.

 3. AI literacy across all levels

  • Institutes of Higher Learning will strengthen AI programmes for both students and working adults.

What this means:

AI competency is becoming a baseline skill, not a specialisation. If you have been unsure where to start, clearer course guidance is coming.

If cost of software has been a barrier to practising, that barrier is being removed.

What to watch for:

  • The list of AI courses eligible for six months of free tools.
  • The redesigned SkillsFuture AI pathways.

4. Enterprise Support for AI Training and Adoption

The announcement:

A new Champions of AI programme will support companies that commit to comprehensive transformation using AI.

What is changing:

Participating firms will receive tailored support for enterprise transformation and workforce training. These companies are expected to set benchmarks for their sectors.

What this means:

Companies investing in serious, organisation-wide AI upskilling can access dedicated funding and support. This creates demand for structured, outcomes-focused training programmes.

What to watch for:

  • Application details
  • Eligibility criteria
  • Sector priorities

5. National AI Missions: Four Priority Sectors

Consolidation of Schemes:

  • The new grant combines existing schemes under Workforce Singapore and SkillsFuture Singapore into a single, streamlined funding source.
  • This simplifies the application process for companies and reduces administrative burdens.

Funding Support:

  • Companies can receive up to 70% funding support for job redesign activities, such as restructuring roles to incorporate new technologies or workflows.

Why It Matters for You:

As a learner, this could translate to more opportunities for on-the-job training and career advancement within your current organisation or in new roles.

6. Enterprise Innovation Scheme: Tax Deductions for AI Expenditure

The announcement:

The Enterprise Innovation Scheme will be expanded.

What is changing:

Businesses can claim 400% tax deductions on qualifying AI-related costs (e.g., tools, innovation projects with Sector AI Centres, SkillsFuture-eligible training), capped at S$50,000 per Year of Assessment for YA 2027 and 2028.

What this means:

Companies investing in AI tools and training can claim significantly higher tax deductions. This reduces the effective cost of workforce upskilling.

What to watch for:

  • IRAS guidance on qualifying AI expenditures (expected mid-2026).
  • Alignment with course eligibility lists.

7. Productivity Solutions Grant: Wider Coverage for AI Solutions

The announcement:

The Productivity Solutions Grant (PSG) will be enhanced.

What is changing:

The grant will support a wider range of digital and AI-enabled solutions.

What this means:

More types of AI tools and training programmes will qualify for PSG funding. Companies, especially SMEs, can offset more of their technology adoption and training costs.

What to watch for:

  • The expanded list of supported solutions
  • Updated grant quantum and application processes

8. Workforce Skills Support: Higher Training Allowances

The announcement:

The basic tier of Workfare Skills Support will be enhanced.

What is changing:

Higher hourly training allowances for eligible lower-wage workers.

What this means:

If you are a lower-wage worker, you will receive greater financial support to offset the cost of time spent on training. This makes upskilling more accessible without sacrificing income.

What to watch for:

  • The new hourly allowance rates
  • Effective date of implementation

9. Senior Employment Credit: Extended Support for Senior Workers

The announcement:

The basic tier of Workfare Skills Support will be enhanced.

What is changing:

Higher hourly training allowances for eligible lower-wage workers.

What this means:

If you are a lower-wage worker, you will receive greater financial support to offset the cost of time spent on training. This makes upskilling more accessible without sacrificing income.

What to watch for:

  • The new hourly allowance rates
  • Effective date of implementation

10. Lifelong Learning: Now a Core Institutional Mission

The announcement:

All autonomous universities, polytechnics, and ITEs have made lifelong learning part of their core mission.

What is changing:

NUS and NTU now offer modular courses for alumni and adult learners. Recognised qualifications can be earned through stackable, bite-sized modules.

What this means:

You do not need to commit to a full degree programme to earn recognised credentials. Training can be accumulated incrementally, around your work and life.

The distinction between “mainstream education” and “continuing education” is blurring.

What to watch for:

  • More modular course offerings from established institutions.
  • Potential articulation pathways between private training providers and Institutes of Higher Learning.

Wrapping Up

Budget 2026 signals a clear and sustained commitment to workforce development.

This year’s announcements go beyond incremental updates—they restructure how skills and jobs connect, expand access to mid-career training, and place AI competency within everyone’s reach.

The message is consistent: training is no longer a one-time event, but a continuous journey—and the system is being rebuilt to support you at every stage.

How @ASK Training Supports Your Journey

@ASK Training is here to help you navigate these changes and make the most of the opportunities ahead.

For Individual Learners:

We offer a wide range of full and individual courses across Digital Marketing, Information Technology (IT), Microsoft Office, AI and Data Analytics, and more—designed for working professionals, career switchers, and lifelong learners.

For Corporations:

As a SkillsFuture Singapore-appointed Continuing Education Training Centre (CETC) , our corporate training programmes provide:

  • Contextualised training for funded courses—industry-relevant content adapted to your sector.
  • Customised training solutions for non-funded programmes—tailored to your specific business objectives, with flexible delivery (online, onsite, or blended).
  • Expert industry trainers who bring real-world experience to the classroom.
  • Hands-on, practical learning designed for immediate application.

Whether you are an individual planning your next career move or an employer building a future-ready workforce, @ASK Training is here to help you navigate these changes and turn policy into practice.

Explore our courses today and take the next step in your learning journey!

People First, Learning Always.

For the most up-to-date information on Budget 2026 initiatives, eligibility criteria, and implementation timelines, please refer to the official SkillsFuture Singapore (SSG), Workforce Singapore (WSG), and Ministry of Manpower (MOM) websites.