One-stop AI centre among key proposals to future-proof Singapore SMEs

SINGAPORE – Small and medium-sized enterprises (SMEs) in Singapore could benefit from a full-service artificial intelligence hub to tackle the challenges of adopting AI.

The proposed One-Stop AI Consultancy Centre would provide expert advice on AI regulations, grant applications and implementation while also serving as an innovation incubator with shared facilities for networking and training.

This is one of five recommendations outlined in a white paper released on April 4 by the Association of Small and Medium Enterprises (ASME) and Young PAP.

The white paper is written with the intent to lower the barriers to AI adoption for SMEs while creating career pathways for Institute of Technical Education and polytechnic graduates.

Other recommendations include training ITE and polytechnic students as “AI super users” to help SMEs operate AI systems and interpret data, developing apprenticeship guidelines to improve internships, and creating affordable AI-powered solutions tailored to micro and small businesses.

The white paper also calls for updating Singapore’s 23 Industry Transformation Maps to reflect the impact of AI on productivity.

These sector-specific road maps launched from 2016 aim to raise productivity, innovation and skills development across key industries such as retail and electronics manufacturing.

Responding to queries, ASME said the white paper will be presented in Parliament after its April 8 session.

ASME president Ang Yuit said the proposals address issues such as high costs, lack of expertise and regulatory uncertainty that hinder SME adoption of AI.

Presenting the white paper to lawmakers in Parliament would bring these challenges to the attention of government ministries, he said.

While 70 per cent of Singaporeans recognised generative AI’s impact on their jobs, and 51 per cent fear job displacement, only 22 per cent prioritised the mastering of the technology, the white paper noted, citing data from surveys.

The authors also raise the possibility of more involvement from trade and business associations, including having them run the proposed AI consultancy centre and matchmaking interns with SMEs and projects.

Although the proposal was written with Young PAP – the youth wing of PAP – the timing of its release and expectations of impending elections are unrelated, Mr Ang said.

The ASME president added: “This paper, which has been in the works for a year, was developed in partnership with Young PAP because their research goals aligned with ours at the time.

“While 2025 is an election year, it is not relevant to our goal of advocating for the needs of small and micro businesses.

“(So) we believe it is important not to delay the release of the paper due to election timing.”