Singapore’s Budget 2025 boosts AI adoption with a $150 million Enterprise Compute Initiative and funding for businesses to drive innovation.
Singapore’s Prime Minister Lawrence Wong announced that SG$150 million will be dedicated to a new Enterprise Compute Initiative to help businesses integrate artificial intelligence (AI) solutions, computing power, and consultancy services.
This initiative is part of a broader strategy to bolster technological innovation, enhance enterprise growth, and maintain Singapore’s position as a global digital economy leader.
Enterprise Compute Initiative: Empowering Businesses with AI
The Enterprise Compute Initiative, a key highlight of the budget, will allocate up to $150 million to enable businesses to collaborate with major cloud service providers for access to AI-powered tools, high-performance computing resources, and consultancy services. This funding complements existing programmes such as the Productivity Solutions Grant and SMEs Go Digital, which have helped businesses leverage technology for enhanced productivity and competitiveness.
By reducing barriers to AI adoption, the initiative aims to equip local firms—especially small and medium-sized enterprises (SMEs)—with the tools needed to drive innovation, automation, and efficiency. With the increasing integration of AI across industries, Singapore’s investment ensures that businesses remain globally competitive and future-proofed against digital disruptions.
Financial Support for Enterprise Growth and Innovation
Beyond AI adoption, Budget 2025 introduces several financial support measures to fuel business expansion. A $1 billion Private Credit Growth Fund will be established to provide financing options for high-growth enterprises, following the $1.8 billion previously allocated to enterprise development.
In addition, the Enterprise Financing Scheme (EFS) will be enhanced to offer higher loan limits for trade financing and broader support for mergers and acquisitions (M&A). The Mergers & Acquisitions Scheme, which provides tax incentives for businesses engaging in M&A activities, will also be extended to December 31, 2030. These measures reflect the government’s commitment to strengthening business resilience and encouraging strategic growth initiatives.
To further support Singaporean businesses in expanding overseas, the government will extend the Market Readiness Assistance (MRA) Grant until March 31, 2026, and the Double Tax Deduction for Internationalization scheme until December 31, 2030. These initiatives aim to help enterprises tap into global markets, form international partnerships, and scale their operations beyond Singapore.
The Global Founder Programme: Attracting Entrepreneurial Talent
Recognising the importance of attracting top entrepreneurial talent, the Singapore Economic Development Board (EDB) will launch a Global Founder Programme in 2025. This initiative is designed to encourage global entrepreneurs to anchor and scale their startups in Singapore, reinforcing the country’s status as a leading innovation and startup hub.
By fostering a dynamic ecosystem of innovation, Singapore aims to draw high-potential tech founders who can contribute to its digital economy, create jobs, and drive cutting-edge advancements in AI and deep tech sectors.
Workforce Upskilling and Tax Incentives
The budget also prioritises workforce development by introducing upskilling incentives to help Singaporean workers gain AI-related skills. The government has allocated up to $3,000 per month for employee training programmes, recognising that AI proficiency will be a key factor in future career growth. A recent study found that most Singaporean workers believe developing AI skills will positively impact their job prospects, reinforcing the need for continuous learning and adaptation.
Additionally, businesses will benefit from a 50% corporate income tax rebate, further easing financial burdens and incentivising companies to invest in technological transformation.
Positioning Singapore as a Digital Innovation Leader
The government’s strategic investments in AI, enterprise growth, and workforce upskilling reflect Singapore’s long-term vision of maintaining its global leadership in digital innovation. By combining AI-driven initiatives with strong financial backing and talent attraction strategies, Budget 2025 aims to ensure that Singapore remains at the forefront of technological advancements and a prime destination for businesses looking to scale and innovate.
As Singapore accelerates its AI transformation, businesses that embrace these initiatives will gain a competitive edge, enabling them to thrive in an increasingly technology-driven global economy.
“Fundamentally, Budget 2025 underscores the importance of aligning skills, industry-tailored Business AI, and commitment to sustainability,” says Verena Siow, President and Managing Director of SAP Southeast Asia. “Through public-private collaboration and targeted investments, Singapore has the opportunity to anchor itself as the regional hub for cutting-edge technologies, digital talent, and sustainable business models.”
“When we pair this commitment to innovation with reliable data, responsible AI deployment, and workforce development, we achieve a virtuous cycle where technology not only benefits enterprises, but also empowers neighboring countries, uplifts communities, and drive collaborative growth across the region.” Siow added.
