Budget 2025: AI, healthcare, climate and talent development are focus of AmChamSG’s wish list
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The US-Singapore partnership has been a cornerstone of economic growth and innovation in the region, said AmChamSG CEO Hsien-Hsien Lei.
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SINGAPORE – American businesses here hope Singapore’s Budget 2025 will continue to include funding and foster partnerships, notably in artificial intelligence (AI), healthcare, climate and sustainability as well as talent development, for sustainable growth.
Dr Hsien-Hsien Lei, chief executive officer of the American Chamber of Commerce in Singapore (AmChamSG), told The Straits Times that policies that promote trade, innovation, and cross-border investments enable the Republic to leverage the expertise and resources of US businesses here to drive sustainable economic growth.
“Furthermore, through continued investment in upskilling and reskilling programmes, knowledge and skills transfer, and international work experience, Singapore can build a future-ready workforce,” Dr Lei said.
“Together, Singapore and the United States must continue to address global challenges by innovating in critical areas such as AI, cyber security, clean energy, climate resilience, and other critical and emerging technologies.”
The US-Singapore partnership has been a cornerstone of economic growth and innovation in the region, and American firms have made significant contributions to Singapore’s development as a global business hub, Dr Lei added.
Singapore’s technology spend reached US$16.3 billion (S$22 billion) in 2023, with the US as the top foreign investor. American companies’ existing and committed capital investments in AI over the next few years, in partnership with Singapore players in the local ecosystem, are expected to exceed US$37 billion, the US embassy here said.
Companies on both sides have committed to partnering to raise the AI capabilities of over 130,000 workers in Singapore, building on the strong support that US companies have already provided for the TechSkills Accelerator, Singapore’s national tech upskilling initiative, it added.
AI-ready workforce
In its feedback to the Ministry of Finance for Budget 2025 on behalf of the American business community here, AmChamSG said Singapore has the potential to establish itself as a regional AI hub. There are around 5,700 American companies in Singapore, of which 660 are members of AmCham.
“A strategic, collaborative approach that encompasses targeted investment, regulatory harmonisation, the cultivation of an AI-ready workforce, and support for research and innovation will be essential for AI to become a significant contributor to Singapore’s economic landscape,” the chamber said.
Special economic zones such as the one in Johor Bahru, Malaysia, could play a crucial role in speeding up AI adoption and knowledge exchange across borders, it said.
It called for the Singapore Government to ease funding for AI adoption as not all businesses are able to access this funding even though it is available.
Standardised cyber-policy frameworks across borders would enable Singapore to cooperate seamlessly with foreign partners on cyber-threat intelligence sharing and response, it suggested.
As many firms face challenges in finding AI talent, AmChamSG suggested greater collaboration between the Singapore Government, institutes of higher learning, and businesses to implement AI training programmes to ensure workers here are future ready.
Singapore should consider developing sector-specific AI governance and regulatory frameworks, it said. Sectors such as manpower require tailored guidance to implement AI solutions, which could benefit from collaborative input from both industry and government stakeholders.
With the five-year Research, Innovation and Enterprise (RIE) 2025 plan
In RIE 2025, the Singapore Government supports investments in research, innovation and enterprise to the tune of $25 billion, or about 1 per cent of the city state’s gross domestic product over 2021 to 2025. The four key areas were health, sustainability, the digital economy, and manufacturing.
RIE 2030 should include funding for greater public-private partnerships in advanced manufacturing, semiconductors, emissions reducing or removal technologies, new energy, and research and development talent attraction and development, AmChamSG said.
Healthcare and environmental, social and governance
Increased collaboration between the public and private sectors to harness AI in healthcare can help mitigate rising medical and hospitalisation costs as Singapore’s population ages.
AmChamSG advocates greater government support for lifestyle management tools, such as wearables and continuous glucose monitors, as part of the Healthier SG initiative.
To ensure comprehensive patient care, it is important to include allied health professionals and expand insurance coverage for preventive care, the chamber said.
On climate and sustainability policies, there is a need for a consultative approach that balances business needs while pushing towards Singapore’s net - zero emissions target by 2050,
AmChamSG recommends bulk purchasing of clean energy and pooled power purchase agreements to secure competitive rates, alongside government-supported green tariffs to ease financial burdens on small and medium-sized enterprises as they transition to clean energy.
In its 2024 manpower survey, AmChamSG found that the top two challenges to hiring more Singaporeans and permanent residents in senior-level roles are the lack of necessary specialised skills and the lack of exposure in overseas markets, global and regional operations.
To address these issues, the Government needs to invest more in programmes that bridge skills gaps and facilitate skills transfer, AmChamSG said.
Tackling workplace discrimination is a key priority as Singapore strives to build an inclusive workforce. AmChamSG supports the new Workplace Fairness Bill and stresses the need for collaboration between the public and private sectors to implement effective anti-discrimination policies for all to thrive in their careers.
More support is also needed to support mature workers and help them stay competitive in a rapidly changing economy, AmChamSG said.
