For mid-size enterprises in Singapore, the year 2026 marks a pivotal shift. Digital transformation is no longer just about moving to the cloud; it is about integrating Agentic AI and high-performance computing to outpace regional competitors. With the government’s National AI Strategy 2.0 (NAIS 2.0) in full swing and a S$1 billion injection into AI research and development, the “sandwich class” of businesses now has unprecedented access to high-tier technology.
At Hallmark Corporate Services, we’ve seen how mid-market firms are leveraging these specific incentives to scale without the typical “growing pains” of high capital expenditure. Here is how your business can tap into these resources today.
1. Massive Tax Savings: The Enterprise Innovation Scheme (EIS)
The Enterprise Innovation Scheme (EIS) remains a crown jewel for mid-size businesses investing in R&D and Intellectual Property (IP). In 2026, the benefits are more aggressive than ever:
- 400% Tax Deductions: Businesses can enjoy a 400% tax deduction on the first S$400,000 of qualifying expenditure per year for activities like R&D, IP registration, and automation.
- Cash Payout Option: For firms that are not yet profitable or are reinvesting heavily, you have the option to convert up to S$100,000 of your total qualifying expenditure into a **non-taxable cash payout** of up to S$20,000. This is a vital liquidity booster for tech-heavy transformation projects.
2. The AI Ecosystem: Enterprise Compute Initiative (ECI)
To prevent mid-size firms from being priced out of the AI revolution, the Enterprise Compute Initiative (ECI) provides the infrastructure needed to run complex models.
- Access to Compute Power: Through partnerships with giants like Google Cloud, Microsoft, and AWS, the government facilitates access to GPUs and cloud credits (up to S$500,000 in some programs) specifically for developing AI-driven products.
- AI Centers of Excellence: Mid-size firms are now eligible for financial incentives and technical consultancy to establish their own in-house AI Centers of Excellence, shifting from being mere “users” of AI to “producers” of proprietary algorithms.
3. Rapid Digitization: The Productivity Solutions Grant (PSG)
While the Enterprise Development Grant (EDG) handles large-scale pivots (up to 50% funding), the Productivity Solutions Grant (PSG) remains the most popular tool for immediate tech adoption.
- 2026 Caps: Mid-size firms can access up to S$30,000 in funding for pre-approved solutions.
- Beyond Basics: In 2026, the PSG directory has expanded to include advanced GenAI Navigators and AI-powered CRM systems that automate lead nurturing and customer sentiment analysis, allowing your sales team to focus on high-ticket closing.
4. Talent and Training: SkillsFuture for Digital Workplace 2.0
Tech is only as good as the people running it. The government is bridging the talent gap by aiming to grow the AI-ready workforce to 15,000 professionals.
- SkillsFuture Enterprise Credit (SFEC): Eligible firms receive a one-off S$10,000 credit to cover up to 90% of out-of-pocket expenses for training and workforce transformation.
- Company Training Committees (CTC): By forming a CTC, mid-size businesses can apply for additional grants to redesign jobs, ensuring that AI augments—rather than replaces—your core team.
5. Responsible Innovation: AI Verify & Project Moonshot
As global regulations tighten, Singaporean businesses have a competitive edge via the AI Verify framework. By using this self-assessment toolkit, your mid-size business can demonstrate to international partners that your AI systems are ethical and transparent. Project Moonshot, an open-source evaluation toolkit, further helps firms test Large Language Models (LLMs) for safety and compliance.
Conclusion: A Strategic Window of Opportunity
Singapore’s 2026 tech landscape is designed to move mid-size businesses from “surviving” to “disrupting.” Between the 400% tax deductions of the EIS and the subsidized compute power of the ECI, the financial barriers to high-level innovation have never been lower.
Is your business missing out on the Enterprise Innovation Scheme? Would you like a consultation on how to maximize your 2026 R&D tax deductions?At Hallmark Corporate Services, we specialize in helping businesses navigate these complex grant landscapes. Contact us now!For mid-size enterprises in Singapore, the year 2026 marks a pivotal shift. Digital transformation is no longer just about moving to the cloud; it is about integrating Agentic AI and high-performance computing to outpace regional competitors. With the government’s National AI Strategy 2.0 (NAIS 2.0) in full swing and a S$1 billion injection into AI research and development, the “sandwich class” of businesses now has unprecedented access to high-tier technology.
At Hallmark Corporate Services, we’ve seen how mid-market firms are leveraging these specific incentives to scale without the typical “growing pains” of high capital expenditure. Here is how your business can tap into these resources today.
1. Massive Tax Savings: The Enterprise Innovation Scheme (EIS)
The Enterprise Innovation Scheme (EIS) remains a crown jewel for mid-size businesses investing in R&D and Intellectual Property (IP). In 2026, the benefits are more aggressive than ever:
- 400% Tax Deductions: Businesses can enjoy a 400% tax deduction on the first S$400,000 of qualifying expenditure per year for activities like R&D, IP registration, and automation.
- Cash Payout Option: For firms that are not yet profitable or are reinvesting heavily, you have the option to convert up to S$100,000 of your total qualifying expenditure into a **non-taxable cash payout** of up to S$20,000. This is a vital liquidity booster for tech-heavy transformation projects.
2. The AI Ecosystem: Enterprise Compute Initiative (ECI)
To prevent mid-size firms from being priced out of the AI revolution, the Enterprise Compute Initiative (ECI) provides the infrastructure needed to run complex models.
- Access to Compute Power: Through partnerships with giants like Google Cloud, Microsoft, and AWS, the government facilitates access to GPUs and cloud credits (up to S$500,000 in some programs) specifically for developing AI-driven products.
- AI Centers of Excellence: Mid-size firms are now eligible for financial incentives and technical consultancy to establish their own in-house AI Centers of Excellence, shifting from being mere “users” of AI to “producers” of proprietary algorithms.
3. Rapid Digitization: The Productivity Solutions Grant (PSG)
While the Enterprise Development Grant (EDG) handles large-scale pivots (up to 50% funding), the Productivity Solutions Grant (PSG) remains the most popular tool for immediate tech adoption.
- 2026 Caps: Mid-size firms can access up to S$30,000 in funding for pre-approved solutions.
- Beyond Basics: In 2026, the PSG directory has expanded to include advanced GenAI Navigators and AI-powered CRM systems that automate lead nurturing and customer sentiment analysis, allowing your sales team to focus on high-ticket closing.
4. Talent and Training: SkillsFuture for Digital Workplace 2.0
Tech is only as good as the people running it. The government is bridging the talent gap by aiming to grow the AI-ready workforce to 15,000 professionals.
- SkillsFuture Enterprise Credit (SFEC): Eligible firms receive a one-off S$10,000 credit to cover up to 90% of out-of-pocket expenses for training and workforce transformation.
- Company Training Committees (CTC): By forming a CTC, mid-size businesses can apply for additional grants to redesign jobs, ensuring that AI augments—rather than replaces—your core team.
5. Responsible Innovation: AI Verify & Project Moonshot
As global regulations tighten, Singaporean businesses have a competitive edge via the AI Verify framework. By using this self-assessment toolkit, your mid-size business can demonstrate to international partners that your AI systems are ethical and transparent. Project Moonshot, an open-source evaluation toolkit, further helps firms test Large Language Models (LLMs) for safety and compliance.
Conclusion: A Strategic Window of Opportunity
Singapore’s 2026 tech landscape is designed to move mid-size businesses from “surviving” to “disrupting.” Between the 400% tax deductions of the EIS and the subsidized compute power of the ECI, the financial barriers to high-level innovation have never been lower.
Is your business missing out on the Enterprise Innovation Scheme? Would you like a consultation on how to maximize your 2026 R&D tax deductions?At Hallmark Corporate Services, we specialize in helping businesses navigate these complex grant landscapes. Contact us now!