Singapore is stepping up efforts to drive comprehensive AI adoption across its business landscape.
Prime Minister Lawrence Wong, in the annual budget speech in Parliament on Thursday, announced a new ‘Champions of AI’ programme to support firms looking to comprehensively transform their businesses using AI. “A few leading Singapore companies like DBS and Grab are already moving decisively on AI transformation,” said Wong. “We want to encourage more to do so.
While many companies report using AI, true end-to-end transformation remains demanding, requiring reorganised data, rebuilt systems, redesigned processes and jobs, and retrained workforces.
The new programme will assist in enterprise transformation and workforce training, helping successful companies set industry benchmarks and inspire wider adoption.
Support will also extend to all enterprises, especially SMEs, to help them adopt AI in practical ways. “We will build on the Enterprise Innovation Scheme, which provides businesses with 400% tax deductions on qualifying expenditures in activities like R&D, innovation, and capability development,” Wong said.
The Enterprise Innovation Scheme will be expanded to include AI-related expenditures as qualifying activities for the assessment years 2027 and 2028, with a cap of S$50,000 per year.
The expansion of the scheme will lower the barriers to adopting automation, data analytics and intelligent technologies, according to Chai Wai Fook, Partner, Tax Services, Ernst & Young Solutions. “With the right support, SMEs can scale their AI capabilities more confidently, boost productivity and participate more fully in emerging growth sectors.”
Meanwhile, the Productivity Solutions Grant (PSG) will be expanded to cover a broader range of digital and AI-enabled solutions, ensuring that companies of all sizes can access tools to work smarter and compete more effectively, said Wong.
“The expansion of the Productivity Solution Grant will complement the EIS to support the adoption of digital and AI solutions by businesses,” Fook added.
