Singapore unveils $1 billion investment in AI to sustain competitive edge in the digital age
Singapore aims to enhance its competitiveness by allocating over $1 billion in investments over the next five years for the continued advancement of AI development.
According to Managing Director of Google Singapore, Ben King, the support for further advancements will come from the Budget 2024. The early adoption of digital innovations will help sustain the competitive advantage in a digital economy.
During the Budget speech on Feb. 16, Deputy Prime Minister and Finance Minister Lawrence Wong said part of the investment would go towards ensuring the country has access to advanced chips, without which further AI development is impossible.
“We will also work with leading companies in Singapore and around the world to set up their AI Centres of Excellence here. We want these Centres to spur industry collaboration and innovation, and drive greater value creation across the whole economy,” Wong said.
Wong refers to AI as “a general purpose technology with a potential to transform a wide range of industries and enhance productivity.”
King stated that Google aimed to advance AI development through initiatives like the Skills Ignition SG program, aiding Singaporeans in acquiring digital skills for new career prospects. The program supported 84 organizations in developing effective generative AI solutions in Singapore. With direct government support now in place, there is an enhanced opportunity to fortify initiatives supporting workers’ upskilling and business digitalization. Strategic collaborations between the public and private sectors will complement these efforts.
Singapore, as one of the first countries to unveil an artificial intelligence plan in 2019, launched the updated National AI Strategy 2.0 in December 2023. This strategy included ways to use artificial intelligence to empower workers and businesses.
Peter Chambers, managing director of sales in Asia Pacific at AMD, said that the funding will “set up a solid foundation for the success of Singapore’s National AI Strategy 2.0 by providing a legitimate support system to empower an SME to truly compete on equal grounds with their MNC competitors in skilled workforce and infrastructure assets.”
Other IT leaders have expressed positive reactions to the tech-related announcements in Budget 2024. Jonathon Dixon, vice president and managing director at Cloudflare underscored the importance of AI centers of excellence for innovation. He also stresses the need for compliance and governance frameworks to ensure responsible AI use.
Kamal Brar, senior vice president at Confluent, emphasized that investments in AI will help improve customer service and operational efficiency. Lim Teck Wee, area vice president at CyberArk focused on the protective aspect of the investment, citing its role in safeguarding against cyber threats while concurrently improving operational efficiency.
Bee Kheng Tay, president of Cisco Asean, expressed the desire for increased focus on AI governance, highlighting the need for additional resources. Citing Cisco’s AI Readiness Index, which revealed that only 36% of respondents in Singapore have highly comprehensive AI policies, she emphasized the necessity for educating organizations on the importance of adapting internal policies. This education would specifically address concerns related to data privacy, security and the ethical use of AI.
