A small country's big strategy – AI as a driver of Singapore's economic growth and competitiveness

Singapore has long been determined to build its position as a global pioneer in artificial intelligence. The strategic starting point for the island state is clear: technological competitiveness is not just an economic policy choice, but a national lifeline. With limited natural resources and geopolitical vulnerability, Singapore relies on technology, research and innovation to ensure its economic resilience and strategic autonomy. For this reason, the country's artificial intelligence policy is exceptionally consistent and long-term. Finland is a noted player in the plans.

Up to date AI policy needs to be constantly reviewed

Singapore was among the first countries to publish its National AI Strategy (NAIS) in 2019, acting as a global leader. The strategy aimed to create a national framework for AI research, development and application, connect research, industry and the public sector, and ensure the ethical use of AI. The state-led, “top-down” approach is also evident in the country’s AI strategy, which seamlessly integrates the goals of economic competitiveness, public sector digitalization and societal well-being.

In 2023, the original NAIS strategy was updated to NAIS 2.0 to better meet today’s challenges. It recognises the enormous potential of AI, but also its risks in a digitalising society. The strategy is supported by the national AI Singapore programme, with key stakeholders including the National Research Foundation (NRF), Economic Development Board (EDB) and Enterprise Singapore. The programme’s research partners include leading universities in Singapore, including the National University of Singapore (NUS), Nanyang Technological University (NTU) and Singapore Management University (SMU). AI Singapore serves as a centralised funding and coordination mechanism for national AI research and development.

NAIS 2.0 – Excellence and inclusion

NAIS 2.0 is built on two principles: strengthening excellence and building the capabilities of citizens and businesses. The Excellence principle emphasizes strengthening research, innovation and value creation, while the Empowerment principle seeks to ensure that the benefits of AI and the skills required for it extend to the whole of society. The strategy is divided into three complementary components that form the foundation of Singapore’s AI system. The overall goal is to use AI responsibly for the benefit of society, “AI for the Public Good”.

Activity Drivers – state and industry as drivers

The first component, Activity Drivers, describes the joint role of government, industry and research institutions as drivers of AI development. Singapore leverages the entire state as an active development platform, providing funding, tax incentives and infrastructure for companies to develop and scale AI solutions.

An example of this is tax incentives for business innovation. For example, the national tax incentive program Enterprise Innovation Scheme is being expanded so that companies can receive up to 400 percent tax deductions on AI-related expenses up to S$ 50,000. The Ministry of Digital Development and Information is piloting the AI Trailblazers program, where 150 companies will have access to a generative AI development environment through a platform provided by Google Cloud.

People and Communities – rapid growth of the talent base

The second part of the strategy, People and Communities, focuses on education and skills development. Singapore aims to triple the number of AI graduates and reach 15,000 experts within five years. This goal is supported by several programs, such as the AI Visiting Professorship, which aims to commit foreign experts to spend at least 20% of their working time in Singapore and anchor their research work in local research units. The Returning Singaporean Scientists Scheme, in turn, aims to attract Singaporean researchers working abroad back to the country. In addition, the national data center service provider ST Telemedia Global Data Centres will offer more than 8,000 internship and training places for data center professionals in the coming years, which also supports the country's capabilities in terms of the infrastructure required for AI.

The national SkillsFuture training program also aims to keep Singaporeans on the cutting edge of development. SkillsFuture offers training vouchers and lifelong learning grants to help citizens update their skills and keep up with economic and technological changes. Course vouchers are now being increasingly encouraged to be used for AI training. The 2026 Budget also announced that citizens who take certain AI courses will receive free access to AI tools.

Infrastructure and environment – capacity with data and computing power

The third entity, Infrastructure and Environment, strengthens the physical and digital infrastructure required by artificial intelligence. Singapore is investing heavily in, among other things, computing power, data resources and energy-efficient data centers. The strategy also includes a sensible diversification of partnerships, as the small country operates in geopolitical turbulence.

In the fall of 2025, the state-owned global investment company Temasek participated in the world's largest data center project, investing USD 40 billion in a data center to be built in Texas, together with Microsoft and Nvidia, among others. This reflects the country's efforts to strengthen its position in the physical infrastructure of artificial intelligence, beyond the borders of the small country.

Finland observed on Singapore’s AI map

Singapore has long been benchmarking Northern Europe, including Finland, for data-driven innovation ecosystems. The National Supercomputing Center (NSCC) and the A*Star Institute of High Performance Computing (IHPC), which are key players in Singapore’s national AI network, have done contract-based collaboration with the IT Center for Science (CSC). CSC and NSCC renewed their agreement in 2025 focusing e.g. on HPC-quantum integration, digital twins, green data center models, and research and talent development. CSC and VTT also collaborate with the National Quantum Office of Singapore.  As for Singapore, these engagements reflect a broader approach to target Northern Europe to meet rising cloud and AI demand, and to access an innovation and startup powerhouse of Europe. 

Roosa Minkkilä & Mika Tirronen
mika.tirronen(at)gov.fi