THE message was clear on the recent news that Singapore’s 2026 budget calls for a “National AI Strategy“ to transition from AI experimentation to full-scale economic integration: the use of artificial intelligence is not optional, but rather a priority.
Singaporean Prime Minister Lawrence Wong said fear cannot be his country’s response to AI. Leadership sets the emotional climate of reform. When the head of government frames technology as a tool to be harnessed, not avoided, it signals confidence to businesses, workers, and students alike.
In addition, the measures are concrete. For business owners, there is a 400-percent tax deduction on AI spending, capped at generous levels. There is a “Champions of AI Program“ focused on end-to-end transformation and workforce retraining. An “AI Park at One-North“ is being scaled into a full innovation hub.
For individuals and workers, the approach is just as deliberate. Six months of free premium AI tools for those who take select training courses. Expansion of AI upskilling programs starting with accountancy and law, where routine tasks can be automated. A merger of SkillsFuture and workforce agencies into a one-stop body for skills, career guidance, and jobs. The goal is alignment. Workers are not left to navigate disruption on their own.
At the center of it all is a National AI Council chaired by Wong himself. It drives four strategic missions: advanced manufacturing, connectivity and logistics, financial services, and healthcare. These are sectors where AI is embedded into real economic activity. On top sits a billion-dollar research commitment and dozens of global AI centers already operating in Singapore.
There is coherence, policy, incentives, education, and sector strategy that move in the same direction.
The Philippines does not have Singapore’s fiscal strength. We cannot replicate a billion-dollar research and development commitment overnight. But we need to copy the scale to adopt the mindset. The question is whether we are willing to be as intentional.
I am reminded of how India positioned itself in the early 2000s. It did not dominate through heavy subsidies alone. It invested in technical education. It built engineering capacity. It aligned policy with the reality that software and IT services were becoming global drivers of growth. Over time, Indian talent became its strongest export.
The Philippines is facing a similar inflection point with AI and advanced technologies. We talk about being a digital nation. We highlight our young population and English-speaking workforce. But talent without updated skills will not carry us far.
Educational reform
If we cannot match Singapore’s budgetary allocations, the least we can do is reform our education system in a serious and focused way. Curriculum reform should not be incremental or cosmetic. It must respond to the reality that automation, data analytics, and machine learning are reshaping every profession.
Digital literacy should no longer be treated as an elective. Coding, data analysis, and critical thinking about technology should be embedded early. Math and science foundations need strengthening, not dilution. Teacher training must also evolve. We cannot expect educators to prepare students for emerging industries if they themselves are not supported in learning new tools.
AI will change how lawyers review contracts, how accountants audit books, how doctors diagnose disease, and how government agencies deliver services. Students need exposure to the ways technology intersects with their fields.
Singapore’s approach recognizes that AI is infrastructure. It sits inside transport systems, financial networks, and healthcare delivery. It is treated as a backbone of competitiveness.
The Philippines must decide whether it wants to remain users of imported systems or builders of its own capabilities.
Government leadership is central. Policy signals shape behavior. When incentives favor innovation and skills development, businesses respond. When agencies are aligned with digital transformation, fragmentation decreases. Even without large-scale funding, clarity of direction can reduce waste and duplication.
Similarly, we should also rethink partnerships. Universities must work closely with industry so curricula remain relevant. Private firms can provide tools and platforms for training. Regulatory bodies must update standards to keep pace with technology without stifling growth. These actions do not necessarily require massive spending.
AI will not wait for slower economies to catch up. The gap between countries that invest early in skills and those that hesitate will widen.
The Philippines has a window to leapfrog by focusing on human capital. Its comparative advantage has always been its people. The next step is to equip them for a different kind of economy.
Kay Calpo Lugtu is the chief operating officer of Hungry Workhorse, a digital and culture transformation firm. Her advocacies include food innovation, nation-building, and sustainability. She may be reached at kay.lugtu@hungryworkhorse.com
