Singapore will allocate up to $150 million for a new Enterprise Compute Initiative, enabling eligible businesses to collaborate with major cloud providers for AI tools and computing power, Prime Minister Lawrence Wong announced in Budget 2025. Those enterprises will also be able to access consultancy services under the initiative.
This initiative complements existing efforts to encourage tech adoption for digital transformation. "All enterprises must invest in technology to enhance their competitiveness and productivity. We will continue to encourage the adoption of off-the-shelf solutions like AI-powered analytics and digital marketing tools [among our enterprises] through initiatives like the Productivity Solutions Grant and the SMEs Go Digital programme," says Wong.
James Wilson, partner, Technology Consulting, Advisory, at KPMG in Singapore, lauds the move. He says: "Most organisations face challenges when it comes to deploying new technologies and SMEs suffer from that more than anyone. Encouraging the use of technology enablers, and enhancing and expanding existing grant programmes will help SMEs implement AI solutions without incurring significant capital expenditure."
To further strengthen the enterprise ecosystem, Singapore will expand support for firms looking to scale globally by extending internationalisation and merger and acquisition (M&A) support schemes.
The city-state will also introduce a new $1 billion Private Credit Growth Fund to provide more financing options for high-growth local enterprises. This builds on some $1.8 billion set aside in the past five years to support enterprise growth through investment funds.
Commenting on the new fund, Paul Ong, partner at Innoven Capital SEA, says: “By enhancing access to private credit, the fund will empower local enterprises to scale effectively, drive innovation, and contribute to Singapore's economic growth. The establishment of the Private Credit Growth Fund not only complements our efforts but also underscores the critical role of alternative financing in an emerging new digital economy. We look forward to collaborating with stakeholders to leverage this opportunity, fostering a robust environment where local enterprises can thrive and expand regionally.”
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The fund and other complementing initiatives will also enhance Singapore’s attractiveness to businesses in the region seeking to tap Singapore's financing capabilities to accelerate their growth, says Clifford Lee, global head of Investment Banking at DBS Bank. "This in turn generates a flywheel effect that further attracts deeper pools of capital, contributing to a more vibrant financing and enterprise ecosystem here."
Meanwhile, the Singapore Economic Development Board will launch a Global Founder Programme. The programme aims to attract and grow new ventures by leveraging its ties with experienced entrepreneurs.
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Follow the market’s reaction to Budget 2025 on The Edge Singapore.
(Updated on February 19, 9.45am to include comments from DBS)
