Singapore Allocates S$1 Billion for AI Development in Budget 2024

SINGAPORE: As part of its forward-looking investment strategy, Singapore announced over S$1 billion in funding for its National AI 2.0 program in Budget 2024. This five-year investment, introduced by Deputy Prime Minister and Finance Minister Lawrence Wong, aims to accelerate the nation’s artificial intelligence capabilities and enhance its position as a global technology leader.

Speaking on Friday (Feb. 16), Mr. Wong highlighted the importance of AI infrastructure, stating that part of the funding will secure advanced AI chips essential for technology development. Singapore will also work alongside global industry leaders to establish AI Centres of Excellence, designed to foster collaboration, spark innovation, and drive economic growth across industries.

Business leaders and industry experts have expressed optimism about this initiative. Mr. Nithin Chandra, managing partner at Kearney Southeast Asia, noted that many business leaders feel unprepared for the rapid AI shift, and the new funding could help bridge this readiness gap. “This initiative ensures that businesses can leverage technological advancements and seize new opportunities,” he added.

Dan Bognar, Vice President & Managing Director of HubSpot JAPAC, emphasized AI’s potential in driving economic resilience and aiding Singapore’s digital economy. For SMEs, he believes the new resources will allow them to compete with larger firms by enhancing their tech capabilities.

Singapore’s strategic focus on AI also includes fostering a responsible and trusted AI ecosystem. Sujith Abraham, Senior Vice President of Salesforce ASEAN, underscored the importance of data security and ethical AI use as adoption increases.

The S$1 billion allocation marks a robust commitment to AI as a pillar of Singapore’s future economy, with expectations that it will create a high demand for skilled professionals and position Singapore as a thriving AI innovation hub.