S’pore’s small and micro firms get access to $10 million grant and bank lifeline for AI adoption
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Micro and small businesses count for 94 per cent of enterprises and 45 per cent of hirings in Singapore.
PHOTO: PIXABAY
SINGAPORE – Singapore’s smallest businesses can now tap $10 million worth of government grants and upfront bank financing to accelerate their adoption of artificial intelligence (AI).
Designed to prevent them from falling behind in the digital economy, the move untangles a persistent bind for these companies – their failure to meet a minimum headcount or turnover thresholds for grants, and their lack of reserves to front-load technology investments.
The Association of Small and Medium Enterprises (ASME) made the announcement as it closed its two-day annual AI Festival Asia
Small and micro enterprises, which employ 30 or fewer employees, hire 45 per cent of the local workforce and account for 94 per cent of enterprises here.
ASME said it will announce details later, but added that it has “ring-fenced existing grants in collaboration with agencies to help micro and small businesses which otherwise will not have qualified for them”.
It is inviting interested companies to apply via this link .
The funding will support small businesses in integrating AI into new workflows, and in hiring or training “AI bilingual” employees who have both domain and tech expertise.
ASME chairman for its digitalisation and AI action group Pulse Tan said: “Projects can fail and sometimes the underlying business struggles before new workflows take root.
“For a small firm, that risk can feel overwhelming.”
He said he hopes the support will ease business owners’ fear of the potential fallout.
ASME also signed a memorandum of understanding with UOB to offer loans to small and micro enterprises to ease cash flow while they wait for grant disbursements.
UOB’s emerging enterprise head for Singapore Paul Kan said digital tools usually demand high upfront costs, and the bank hopes to help small and micro firms overcome situations where projects are stalled by the waiting time for reimbursements.
The ASME annual event showcases Singapore’s model of collaboration between businesses, schools, trade associations and the Government to move the nation forward in digitalisation.
On Jan 22, Minister of State for Digital Development and Information Jasmin Lau presided over the signing of a Lenovo-backed AI Foundry for small and micro enterprises,
She told guests that more public initiatives to support small and micro firms in adopting AI would be announced in the coming weeks, including help for those that are just getting started.
Minister of State for Trade and Industry Alvin Tan closed the festival with a fireside chat, where he highlighted the role that micro and family businesses play in Singapore’s economy.
