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S$150M Enterprise Compute Initiative to help Singapore firms “leverage AI more,” expand globally, and pursue M&A
SINGAPORE: Singapore is stepping up its support for local enterprises to harness artificial intelligence (AI) in their operations. In his Budget 2025 statement on Tuesday (Feb 18), Prime Minister Lawrence Wong announced up to S$150 million for a new Enterprise Compute Initiative.
Under this initiative, eligible enterprises will be partnered with major cloud providers to access AI tools, computing power, and consultancy services. This will help them “leverage AI more effectively,” PM Wong, who is also Finance Minister, said, according to The Straits Times.
Industry leaders have expressed strong support for the initiative.
Lee Bo Han, partner of R&D and Incentives Advisory at KPMG in Singapore, said the move signals Singapore’s drive to lead in global innovation. While it improves AI access, he noted that AI adoption is “rarely a straightforward process” for smaller enterprises.
“Success hinges on providing customised solutions and assurance through trusted partners who align AI applications with SMEs’ specific growth journeys,” Mr Lee said, adding that this is key to closing the AI gap, fostering innovation, and driving sustainable economic growth across all business scales.
“Coupled with the Global Founders Programme, which anchors ventures in Singapore and facilitates critical skills transfer, these efforts will be instrumental in developing globally and regionally competitive AI talent,” James Wilson, Partner of Technology Consulting at KPMG in Singapore said.
Lyon Poh, partner and head of corporate transformation at KPMG in Singapore, added that while these measures will lower investment costs and bridge technical expertise gaps—empowering enterprises to experiment with AI and integrate it into their workflows—financial incentives alone aren’t enough.
“Singapore’s leadership must champion a future-forward approach to ensure businesses gain the confidence and capability to undertake AI-driven transformations at scale,” he said.
Jornt Moerland, senior vice president for Asia Pacific at Mendix, noted how the initiative will support local enterprises in integrating novel technologies, such as AI-assisted development, into their existing processes and systems and, in the long run, enable them to cultivate an agile, change-ready, and adaptable tech stack.
Dan Bognar, vice president and managing director for JAPAC at HubSpot, said the initiative arrives at a critical time when businesses must accelerate their digital transformation. “In today’s fast-paced digital economy, time is of the essence,” he added.
Meanwhile, Koren Wines, managing director of Xero Asia, said, “Technology adoption, however, is often just the first step to long-term digital-led growth.”
“The most successful businesses will be those that strengthen the digital capabilities of their workforce, enhancing future readiness and driving sustainable growth in the digital economy,” she added.
In addition to the Enterprise Compute Initiative, PM Wong also announced a new S$1 billion Private Credit Growth to expand financing options for high-growth local enterprises.
PM Wong said some funds will be set aside as patient capital to support enterprises with longer growth trajectories so they could have the resources to thrive. He noted that while Singapore has built a strong pool of competitive start-ups and enterprises, more support is needed to help them execute their growth plans and compete globally.
The Government will also extend its support schemes for international expansion and mergers and acquisitions (M&A). /TISG
