Singapore is doubling down on enterprise technology and innovation as it navigates an increasingly competitive global landscape. With AI adoption accelerating, deep-tech industries evolving, and high-growth enterprises seeking capital, the government is expanding its R&D investments, digital infrastructure, and support for businesses leveraging advanced technologies.
These priorities were laid out by Prime Minister and Finance Minister Lawrence Wong in his Budget 2025 speech, delivered at Parliament House on February 18.
“We will take bold and decisive actions to advance our growth frontier,” Wong stated. “If we fail to stay competitive, we will be left behind. We must therefore redouble efforts to grow our economy and keep it dynamic and vibrant.”
At the core of this year’s budget are major initiatives to support AI-powered transformation, strengthen Singapore’s tech-driven enterprises, and bolster national R&D capabilities — all of which are critical as the country positions itself for the next phase of economic growth.
AI and enterprise innovation
Singapore is making targeted investments to accelerate enterprise AI adoption and strengthen R&D capabilities. At the heart of this push is the Enterprise Compute Initiative, backed by SG$150 million, which will help businesses access AI tools, computing power, and expert consultancy services through partnerships with major cloud providers.
This initiative is part of a broader effort to integrate AI into business operations, ensuring that enterprises can leverage AI-driven analytics and automation to enhance efficiency and competitiveness.
Beyond AI, the government is increasing R&D investments to support Singapore’s role as an innovation hub. Wong announced a SG$3 billion top-up to the National Productivity Fund, aimed at attracting high-quality investments and supporting industries that will define the next wave of technological growth.
“To sustain this momentum, we must invest to keep our R&D infrastructure at the cutting edge,” he said. “In the semiconductor space, we will develop a new national semiconductor R&D fabrication facility. This will provide industry-grade tools for researchers and industry partners to prototype and test new semiconductor innovations.”
Singapore’s role in deep-tech development
As semiconductors and biotech become increasingly important to Singapore’s economy, the government is expanding its focus on these sectors. The government is committing SG$1 billion to develop state-of-the-art semiconductor and biotech research infrastructure, ensuring that companies in these fields have the tools and facilities needed for breakthrough innovations.
Singapore plays a significant role in semiconductor manufacturing, accounting for over 10% of the world’s semiconductor output and one-fifth of global semiconductor equipment production. Wong also noted Singapore’s contributions to life sciences, stating that the country produces 80% of the world’s DNA chips, which are used in genetic sequencing, diagnostics, and precision medicine.
These investments are part of Singapore’s broader strategy to develop its deep-tech sector, supporting both global firms and local enterprises in advanced technology industries.
Investing in workforce transformation
As AI and digital transformation reshape industries, Singapore is taking steps to equip businesses and workers with future-ready skills. Recognising that companies are best placed to drive workforce transformation, the government is introducing new funding mechanisms to make upskilling more accessible and affordable.
One key initiative is the SkillsFuture Workforce Development Grant, which consolidates existing schemes to simplify applications and provide higher funding support. Under this framework, companies can receive up to 70% in subsidies for job redesign activities, helping businesses restructure roles and integrate technology-driven efficiencies.
To further reduce administrative friction, the government is also redesigning the SkillsFuture Enterprise Credit, shifting it from a reimbursement-based system to an online wallet model. This means companies will be able to immediately offset costs for eligible workforce transformation initiatives, rather than pay upfront and wait for reimbursement.
“All companies with at least three resident employees will get a fresh SG$10,000 in the redesigned SkillsFuture Enterprise Credit,” Wong announced. “The new credit will be available in the second half of 2026 and will last for three years.” In the meantime, businesses can continue using the existing credit, which has been extended until the new scheme is implemented.
Expanding AI and digital connectivity
Singapore is upgrading its digital infrastructure to support AI adoption and business connectivity. As part of this effort, the government is expanding its nationwide broadband and 5G networks, improving access to high-speed, reliable connectivity for enterprises.
“We have achieved island-wide 5G coverage, and we are upgrading our Nationwide Broadband Network to deliver speeds up to 10 times faster,” Wong stated. “This will enhance digital connectivity for businesses and individuals.”
These infrastructure upgrades are expected to benefit industries reliant on high-speed, low-latency networks, including (but not limited to):
- AI-powered enterprises, which require faster data processing for real-time analytics and automation.
- Financial institutions, which depend on secure, high-bandwidth connections for seamless transactions and digital banking services.
- Immersive media and metaverse applications, which will gain from low-latency connectivity to enhance virtual and augmented reality experiences.
These aim to strengthen Singapore’s digital infrastructure, so that businesses have the connectivity required for AI adoption and advanced computing.
A tech-driven economy
Budget 2025 includes measures to support AI adoption, R&D, digital infrastructure, and workforce transformation. These initiatives aim to expand Singapore’s technological capabilities, enhance enterprise competitiveness, and equip workers with skills for a changing economy.
“We will keep our economy strong and vibrant, and ensure that there are even more opportunities and good jobs for all Singaporeans — both now and in the future,” Wong said.
