SINGAPORE – More than $45 million has been set aside over the next three years to help small and medium-sized enterprises (SMEs) in the advanced manufacturing industry deploy artificial intelligence solutions.
This was one of the initiatives under Singapore’s national AI strategy that was announced by Minister of State for Energy, Trade and Industry Gan Siow Huang on Oct 21.
Gan said the Catalytic AI Solutions initiative will make the technology more accessible to SMEs, and support them in overcoming common barriers when adopting AI.
“We want AI to be accessible not just to large manufacturers, but also to our SMEs,” she said at the Industrial Transformation Asia-Pacific (ITAP) event at the Suntec Singapore Convention & Exhibition Centre.
“Through this initiative, manufacturers can access ready-to-deploy AI solutions to improve productivity, optimise efficiency and strengthen their competitiveness,” she added.
Under the initiative, Enterprise Singapore (EnterpriseSG) will work with trade associations and chambers and qualified vendors to offer a suite of solutions to SMEs, with some firms having already confirmed their interest.
The solutions will enable tasks such as the optimisation of product and component design, and the enhancement of production scheduling and predictive maintenance.
EnterpriseSG’s assistant managing director for manufacturing Wong Zeng Yi said: “AI is creating new possibilities for manufacturers to improve productivity, quality and responsiveness, while opening new revenue opportunities through faster innovation.
“We want to help more manufacturers embed AI into their core operations, so they can realise these gains at scale.”
Eligible SMEs will have their adoption of AI solutions co-funded by EnterpriseSG, which plans to extend the initiative to the logistics and wholesale trade sectors.
Another initiative announced at ITAP was a manufacturing jobs portal developed by the Singapore Manufacturing Federation.
Gan encouraged prospective employers and jobseekers to sign up for the Manufacturing and Talent Connection Hub, which is expected to be operational later this year.
The manufacturing industry accounts for around 20% of Singapore’s gross domestic product, and employs about 12% of its workforce.
Industrial transformation has never been more important, Gan said, as manufacturers are operating in a more complex environment, with tight labour markets, intensifying competition for investments, and supply chains which are being reshaped by geopolitics.
Companies must also become more sustainable while remaining competitive, she added.
Gan said: “Advanced technologies such as robotics, digital twins, and AI can help our manufacturers raise productivity, strengthen competitiveness, and bring about skilled roles for our workforce.
“If we move decisively, Singapore can strengthen our position as a critical global node for advanced manufacturing, where companies develop new technologies and engineering capabilities, deploy them at scale, and contribute to global manufacturing.”
A set of national AI missions, namely in advanced manufacturing, connectivity, finance and healthcare, was announced by Prime Minister Lawrence Wong earlier at Budget 2026.
This came alongside the creation of a National AI Council, chaired by PM Wong, to help Singapore harness AI as a strategic advantage.
The advanced manufacturing mission aims to reimagine the industry to grow its output and productivity.
This involves advancing product and process innovation, anchoring best-in-class factories in Singapore, and building a base of industrial AI companies that develop AI solutions locally and export them to the rest of the world.
Gan said the AI Centre of Excellence for Manufacturing, jointly established by A*STAR and the Ministry of Energy, Trade and Industry in September 2024, has been an important enabler of this mission.
Companies including drinks producer Coca-Cola and tech manufacturer Philips, had signed on to collaborate with the centre at its launch.
In all, Gan said the centre has collaborated with 30 manufacturers in sectors including aerospace, semiconductor, pharmaceuticals and energy, ranging from local firm Sunningdale Tech to the multinational Rockwell Automation.
It has also completed 23 projects which deployed AI solutions to companies.
Gan said the centre will now enter its next phase and “deepen its capabilities to tackle more complex and mission-critical manufacturing problems, supporting end-to-end AI-enabled transformation and scaling AI adoption to the broader base of manufacturers”.
She added: “It will also draw more extensively on the strengths of our research and innovation ecosystem, working with our institutes of higher learning, frontier AI start-ups, and technology providers to develop relevant, industry-ready AI solutions.”
