AI and skills development remain imperative at Singapore Budget 2025

The tech ecosystem in Singapore welcomed Prime Minister Lawrence Wong’s announcement on initiatives for AI and skills development at Singapore Budget 2025.

Singapore’s Budget 2025 plans take a significant step forward towards the country’s goal of becoming a leader in AI development in the region. Prime Minister Lawrence Wong announced a string of initiatives not only to improve the livelihood of Singaporeans but also enable businesses in Singapore to focus more on their tech developments.

Specifically, the Prime Minister announced an allocation of SG$150 million for a new Enterprise Compute Initiative that takes a deeper focus into AI development and deployment in the country. The initiative provides eligible enterprises the opportunity to partner with major cloud service providers to plan their AI strategy. This includes being able to access AI tools, computing power as well as consultancy services.

The tech ecosystem in Singapore welcomed the announcement with several vendors and partners in the region sharing their views with CRN Asia.

Tay Bee Kheng, President of Cisco ASEAN believes the announcements encourage innovation and productivity among companies. She explained that amid a dynamic business landscape, it has become critical for companies to remain competitive by leveraging innovative solutions for productivity. As such, Tay believes the government’s SG$3 billion top-up to the National Productivity Fund is encouraging to see, as it will enable companies to tap on AI and other high-value technology to drive their productivity and innovation.

On the AI initiative, Tay said Cisco is encouraged with the investment and pointed out that AI has the potential to become one of the biggest technology disruptors of our lifetime, overtaking the cloud and even the internet.

“This is a critical step in helping the country become a global player for AI and in strengthening its position as a global business and innovation hub. It also encourages companies to forge ecosystem partnerships, a critical element of success, by enabling eligible enterprises to partner with major cloud service providers to access AI tools and computing power, and consultancy services,” said Tay.

She added that the Enterprise Compute Initiative comes at a good time, as the urgency to adopt AI rises while reality hits companies on what is needed to succeed. Notably, nearly all companies in Singapore reported an urgency to implement AI with only 13% being fully prepared to leverage AI.

AI requires increased focus on data and cybersecurity

For Kenneth Poh, Country Manager for NetApp Singapore and the Philippines, Singapore’s Budget 2025 reinforces the nation’s ambition to lead in AI innovation, laying the groundwork for an agile and future-ready economy. The SG$150 million Enterprise Compute Initiative, for example, presents a significant opportunity for businesses to overcome AI adoption barriers and focus on execution.

“At NetApp, we believe AI is only as powerful as the data that fuels it. It’s essential for organizations to build intelligent, scalable data infrastructure that enable them to collect, manage and unify any data, anywhere – across on-prem and hybrid cloud environments – to uncover insights, drive innovations and business outcomes. Furthermore, as AI capabilities expand, so do cyber threats. Ransomware and other attacks increasingly target AI infrastructures, making data both AI’s greatest asset and its biggest vulnerability. As such, businesses need to embed cyber resilience at every layer, prioritizing real-time threat detection, zero-trust architectures, and AI-driven safeguards,” said Poh.

Poh added that in today’s era of data and intelligence, a future-ready data ecosystem and strong public-private partnerships will help Singapore solidify its position as a global AI and digital innovation hub.

Meanwhile, George Lee, Senior Vice President, Asia Pacific & Japan for Proofpoint commented, “The Singapore government's commitment to fostering AI adoption through initiatives like the Enterprise Compute Initiative is a game-changer. Fostering AI adoption by providing businesses with access to cutting-edge AI tools and computing power, coupled with expert consultancy, will undoubtedly unlock significant opportunities for growth and innovation.

Acknowledging the Enterprise Compute initiative will undoubtedly position enterprises to be at the forefront of technological transformation, he highlighted that realizing AI's full potential requires a measured and responsible approach, prioritizing data integrity, security, and quality while mitigating potential biases and protecting sensitive information.

“This responsible approach is not just best practice, it's a necessity. The increasingly sophisticated cyber threat landscape demands a comprehensive, adaptive, and human-centric security strategy. Recognizing that employees are often the target of advanced attacks, robust email security, cloud security, and information protection measures are crucial. By embracing a responsible and secure approach to AI adoption, enterprises here can confidently harness this transformative technology's power while safeguarding themselves against evolving threats,” said Lee.

Skills Initiative in Singapore

Looking at the Skills Initiative announced at Budget 2025, Simon Lee, Senior Vice President and Managing Director of Asia-Pacific and Japan, New Relic commented that the expansion of the SkillsFuture Enterprise scheme will help equip organizations to better address the persistent shortage of seasoned IT professionals in the region.

“While the hunt for talent continues, it is crucial for businesses to harness the power of existing teams by investing in training, encouraging knowledge-sharing sessions and embracing the unique strengths each member brings to the table. For software engineers–who are critical to the foundation of Singapore’s digital ambitions–the tools they use can make all the difference in their efficiency. Leveraging AI-strengthened tools can turn tasks that used to take hours into actions that take mere minutes. AI can simplify workflows, build dashboards to ensure full alert coverage and ultimately, help build resilient, high-performing systems,” said Lee.

Meanwhile, William Oh, Director of Business Development, APAC, BlueVoyant, stated that the newly enhanced workforce development schemes will help Singapore organizations cultivate the necessary talent to mature their supply chain risk defenses through better tracking of third-party vendors and collaboration in remediating cyber issues.

“While Singapore looks to unlock the next phase of growth in its digital economy, organizations must prioritize robust cybersecurity strategies and maintain resilience. Remember that diversifying your supply chain is a complex and a long-term process. It requires careful planning and risk assessment to ensure a smooth transition while maintaining the quality and efficiency of continuing your operations in the chance that an event occurs,” said Oh.

Echoing Oh’s sentiments is Ben Goodman, Senior Vice President and General Manager, Asia Pacific & Japan, Okta. Goodman pointed out that with the fast-evolving nature of the global business environment and the critical role Singapore plays, the increased risk of cyber threats across both the public and private sector are hitting unprecedented levels. He believes the continued investments towards AI and digital transformation outlines how seriously Singapore takes these risks and the need to be proactive in protecting the people and businesses of the country.

A shared approach to skills development

Andy Sim, Vice President and Managing Director, Singapore, Dell Technologies said that beyond technical skills, workers must be AI literate, understanding and working alongside AI. By upskilling together, companies of all sizes (MNCs or SMEs) can leverage Singapore’s talent to drive growth.

Sim shared how Dell Technologies’ APJ AI Innovation Hub is committed to Singapore’s journey towards becoming a leading global AI hub. This includes nurturing the next generation of AI talent through various initiatives and also partnering institutions of higher learning to enhance the pre-employment training curriculum for tertiary students in Singapore

He added that Dell also continues to work with its network of partners and customers to support mid-career professionals with skills training and enhancement through its Dell Technologies Skills Up program .

David Nguyen, FPT Software SVP and FPT Asia Pacific CEO, FPT Corporation also shared his views stating, “ The SG60 Budget highlights the nation’s resilience and long-term vision, reinforcing its position as a global hub for technological innovation.

Nguyen mentioned that strengthening AI capabilities will place Singaporeans at the forefront of an AI-first world while enhancing Asia Pacific’s competitiveness in the global AI landscape. However, he believes the region’s ongoing IT talent shortage remains a pressing challenge and without decisive action, AI ambitions risk being constrained by a lack of skilled professionals.

“One clear path forward is looking beyond borders to tap into emerging IT talent hubs. Vietnam, for instance, is fast emerging as a leading IT talent hub, now producing over 80,000 IT graduates annually. This presents a strategic advantage to scale AI capabilities and accelerate innovation,” said Nguyen.

As Singapore builds on six decades of progress, Nguyen believes its investment in AI skills, advanced training, and strategic partnerships will shape its digital future.

“The SG60 Budget lays the foundation for AI to become not just a tool for innovation but a key driver of national and regional growth,” he said.