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Do SMEs have a role amongst Singapore’s AI growth ambitions?

29 May 2025

Singapore has strong ambitions to be a global AI hub: what are the key drivers?

 Amid the global fight for tech supremacy, Singapore is proving that it can hold its own, keep pace with the rest of the world and be agile enough to unlock the strategic advantages of AI.  There are a few dynamics at play when thinking about AI investment: 
 

  • Guided by its National AI Strategy 2.0, the city-state has earmarked US$743 million to boost its AI capabilities, and is looking to triple the number of AI practitioners to 15,000 over the next few years. 
  • According to the Economic Development Board (EDB), Singapore leverages its status as a global hub for travel, finance, and cargo to develop and monetize AI specific to these industries. 
  • The city-state also aims to be a "digital Switzerland", earning the trust of tech players from both the US and China.
  • That said, the rapid adoption of AI brings with it challenges such as data privacy, algorithmic bias and ethical governance. And as AI systems become more embedded in critical sectors, ensuring transparency, accountability and public trust becomes paramount.   

 

SMEs have a role to play within Singapore’s future investment 
SMEs do have ways to commercialise these efforts including:  

  1. AI Product Development: SMEs can leverage government initiatives like the Google for Startups Accelerator: AI First Singapore to develop proprietary AI products. This program provides access to advanced AI technologies and resources, enabling SMEs to create innovative solutions tailored to their business needs. 
  2. Public-Private Partnerships: Collaborations between the government and tech giants like Google Cloud offer SMEs opportunities to adopt AI solutions that enhance productivity and efficiency. These partnerships often provide affordable access to AI tools and platforms, making it easier for SMEs to integrate AI into their operations. 
  3. Market Expansion: Use Singapore as a testbed for experimentation and early adoption, before scaling AI solutions to regional markets in ASEAN. The GenAI Sandbox for SMEs launched by IMDA and Enterprise Singapore for instance, helps companies gain hands-on experience when it comes to GenAI-powered solutions. 
  4. Formulate AI governance policies: Capitalise on resources like the Model AI Governance Framework for Gen AI, or AI Verify, an AI governance testing framework and software toolkit to help ensure fairness and data governance in your AI solutions to stay ahead of regulatory expectations. 
  5. Data Monetisation: As SMEs digitise, they often gain access to valuable data ranging from customer behaviour, supply chain efficiency or even sales trends. Build modular AI tools like forecasting models or recommendation engines that can be embedded into client systems to create recurring revenue streams.

 

So how can Australian tech SMEs get a head start within Singapore’s AI investment focus?    

  • Familiarise yourself with regulatory bodies such as the Monetary Authority of Singapore (MAS), the Personal Data Protection Commission (PDPC) which administers the Personal Data Protection Act (PDPA), as well as the Infocomm Media Development Authority (IMDA).  
  • Develop clear data governance policies and strong cybersecurity frameworks to ensure transparency, or set up an advisory group that understands Singapore’s business and legal landscape.   
  • Another great way to scale your business is by leveraging government schemes that support digital transformation and the development of digital infrastructure.   
  • The SMEs Go Digital programme aims to help firms build stronger digital capabilities to seize growth opportunities in the digital economy. 
  • Tap into Singapore’s Smart Nation initiatives that offer tailored programmes to support firms in their digital transformation efforts   

     

This five-part series explores how SMEs can unlock growth by tapping into stronger Australia–Singapore ties and shared momentum in innovation, AI and smart cities. The insights are powered by Via Communications Group: a communications agency focused on supporting international businesses with their cross-border communications needs across Asia. You can check them out at wearevia.com

 


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