Alexandra Hartman Editor-in-Chief

Singapore’s ambitious push to integrate artificial intelligence across its economy is facing questions from Members of Parliament regarding equitable access for small and medium-sized enterprises (SMEs) and ensuring the benefits of the technology are widely shared. During the recent Budget 2026 debate, concerns were raised about the potential for a “two-speed economy” if SMEs are left behind, and the require to prioritize inclusive access to AI for all segments of the workforce.

The debate highlighted a tension between the government’s enthusiasm for AI’s potential and the practical challenges faced by businesses and workers adapting to the modern technology. While acknowledging the significant opportunities AI presents, MPs stressed the importance of addressing anxieties surrounding job displacement, the cost of implementation, and the need for targeted support to ensure a smooth transition. The focus on trust, inclusivity, and worker support underscores a cautious approach to AI adoption.

SME Concerns: Beyond Initial Costs

Many SMEs have expressed reservations about becoming “guinea pigs” in AI adoption, citing past experiences with technologies that quickly became obsolete. Minister of State for Digital Development and Information, Jasmin Lau, acknowledged these concerns, noting that businesses are “right to be cautious” given their experiences. The government is responding by refining its funding schemes to address evolving barriers. Initially, the focus was on subsidizing set-up costs, but the current challenge lies in capability development and workflow redesign. Funding will now be directed towards implementation, business process redesign, rescaling, and organizational change, recognizing that these are often more significant hurdles than initial investment. Ms. Lau emphasized a commitment to streamlining the application process, ensuring that SMEs aren’t deterred by “onerous and cumbersome paperwork.”

Nominated MP Mark Lee pointed out the financial strain AI implementation can place on SMEs, encompassing software costs, data restructuring, and worker upskilling. He noted that larger firms have the resources to absorb these fixed costs more easily, while SMEs face immediate risks if transformations fail. Clarity regarding eligibility criteria and resource allocation is crucial, he argued, to prevent misallocation of funds. MP Denise Phua (PAP-Jalan Besar) echoed these concerns, stating that SMEs cannot be an “afterthought” and proposed a tiered support system based on AI readiness, with government-funded AI coaches and strengthened support from organizations like the Singapore Business Federation and the National Trades Union Congress (NTUC).

Expanding Access: From Blue-Collar Workers to Primary School Students

MPs too emphasized the need for inclusive access to AI beyond the business sector. Gerald Giam (WP-Aljunied) advocated for leveraging “physical AI” – such as collaborative robots – to assist blue-collar workers in manufacturing and logistics, and utilizing AI-powered translation tools for those facing language barriers. He proposed extending the 400 percent tax deductions on AI expenses to include corporate AI subscriptions, providing workers with access to these tools while maintaining data security. Mr. Giam argued that providing every worker with a “digital assistant” should be a national goal, ensuring that the benefits of AI are shared by both employers and employees.

The conversation extended to education, with Darryl David (PAP-Ang Mo Kio) stressing the importance of ensuring all students have a foundational level of digital literacy. He advocated for extending access to personal learning devices to primary school students, arguing that This represents essential for developing the skills needed to engage with AI effectively. Ms. Lau also highlighted the need to re-evaluate the focus of education, emphasizing judgment, values, and the ability to collaborate with AI, rather than compete against it. She posed critical questions about how to educate children about the limitations, biases, and blind spots of AI, and how to balance academic rigor with character and social development.

What’s Next for Singapore’s AI Strategy?

The government’s commitment to refining its funding schemes and providing targeted support for SMEs signals a pragmatic approach to AI adoption. The focus on addressing capability gaps and streamlining processes suggests a willingness to adapt to the evolving needs of businesses. The emphasis on inclusive access, extending from the workforce to the education system, demonstrates a broader vision for ensuring that the benefits of AI are shared across all segments of society. The AI Foundry programme, unveiled by ASME with $1 million in support from Lenovo, exemplifies this commitment to practical application and prototyping.

The coming months will be crucial in observing how these initiatives translate into tangible outcomes for SMEs and workers. Continued monitoring of key metrics, such as productivity gains and wage increases, will be essential to ensure that Singapore’s AI strategy delivers on its promise of a more inclusive and prosperous future. The government’s accountability in ensuring these outcomes will be a key factor in building trust and fostering widespread adoption of AI across the nation.

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