Singapore Budget 2025 boosts AI with $150m investment

The Singapore Budget 2025 has placed significant emphasis on the advancement of technology and innovation, endorsing artificial intelligence (AI) as a substantial growth catalyst. 

Highlighting this commitment, a $3 million boost has been channelled into the National Productivity Fund for technology enhancement, while the Enterprise Compute Initiative has received a substantial $150 million investment to aid businesses in integrating AI solutions.

George Lee, Senior Vice President for Asia Pacific & Japan at Proofpoint, hailed the Government's proactive stance towards AI adoption as a transformative move. According to Lee, initiatives like the Enterprise Compute Initiative are pivotal in equipping businesses with access to state-of-the-art AI tools, computing power, and expert consultancy. This, Lee noted, is likely to unlock significant opportunities for growth in the business sector.

Lee highlighted that while the adoption of AI holds the promise of increasing competitiveness and productivity, it requires a balanced and responsible approach. He stressed the importance of prioritising data integrity, security, and quality, along with mitigating biases and protecting sensitive information. In a rapidly evolving cyber-threat landscape, Lee underscored the necessity of robust security measures, including email and cloud security, as a central component of using AI responsibly.

Similarly, Terry Smagh, Senior Vice President and General Manager for Asia Pacific & Japan at Infor, welcomed the government's budgetary focus on AI and innovation. Smagh commended the budget's provisions as forward-thinking, noting their potential to bolster Singapore's technological framework and competitiveness on the global stage.

Smagh praised the government's approach for taking bold steps to enhance critical infrastructure capabilities and fortify the enterprise ecosystem, which he believes will foster an environment conducive to innovation. The proposed measures, Smagh suggested, are not just about keeping pace with global peers but also about transforming challenges into tangible opportunities for growth.

The introduction of a 50% corporate income tax rebate for businesses was seen as a strategic move to reinforce the emphasis on AI, empowering Singaporean enterprises to sharpen their competitive edge. Smagh also drew attention to a projected 44% increase in productivity for businesses that would result from automating repetitive tasks and enhancing workflows through AI adoption.

The budget also provides for an allocation of up to $3,000 a month for employee upskilling, enhancing the workforce's ability to thrive in a digital economy. This initiative aligns with findings from AWS, which indicates a strong belief among 95% of Singaporean workers that developing AI skills will positively impact their careers, improving job efficiency and satisfaction.

The efforts to scale the adoption of AI and support for infrastructure development reflect Singapore's commitment to leveraging technological advancements to drive economic growth. The strategic investment plans outlined in the budget are seen as foundational steps towards ensuring long-term resilience and sustainability, with the aim of positioning Singapore as a leader in digital innovation.