More than S$45 million set aside to help Singapore manufacturers adopt AI

Singapore has allocated over $45 million over the next three years to assist small and medium-sized enterprises (SMEs) in the advanced manufacturing sector in adopting artificial intelligence (AI) solutions. This is part of the nation's national AI strategy unveiled by Minister of State for Energy, Trade and Industry Gan Siow Huang on October 21.

The Catalytic AI Solutions initiative aims to make AI technology more accessible to SMEs, helping them overcome common barriers to adoption. Minister Gan emphasized the importance of making AI accessible not only to large manufacturers but also to SMEs. Through this initiative, manufacturers can access ready-to-deploy AI solutions to improve productivity, optimize efficiency, and enhance competitiveness.

Enterprise Singapore (EnterpriseSG) will collaborate with trade associations, chambers, and qualified vendors to offer a range of solutions to SMEs. Some firms have already expressed interest in these solutions, which will help with tasks such as optimizing product and component design, improving production scheduling, and enabling predictive maintenance.

Wong Zeng Yi, EnterpriseSG's assistant managing director for manufacturing, highlighted that AI offers new possibilities for manufacturers to enhance productivity, quality, and responsiveness while creating new revenue opportunities through faster innovation. EnterpriseSG plans to co-fund the adoption of AI solutions for eligible SMEs, with the initiative potentially expanding to the logistics and wholesale trade sectors.

Another initiative announced at the ITAP event was a manufacturing jobs portal developed by the Singapore Manufacturing Federation. The Manufacturing and Talent Connection Hub, expected to be operational later this year, will connect prospective employers and jobseekers.

The manufacturing industry contributes around 20% of Singapore's gross domestic product and employs approximately 12% of the workforce. Minister Gan stressed that industrial transformation is crucial in the face of tight labor markets, intense competition for investments, and supply chains reshaped by geopolitics. Advanced technologies like robotics, digital twins, and AI can help manufacturers boost productivity, strengthen competitiveness, and create skilled roles for the workforce.

Singapore's national AI missions, including those in advanced manufacturing, connectivity, finance, and healthcare, were announced by Prime Minister Lawrence Wong during Budget 2026. These missions aim to reimagine the advanced manufacturing industry, grow its output and productivity, and build a foundation of industrial AI companies developing AI solutions locally and exporting them globally.

The AI Centre of Excellence for Manufacturing, established in September 2024, has already collaborated with numerous manufacturers and completed 23 projects deploying AI solutions.