As nations compete for AI dominance, Singapore is carving out a niche for itself
Singapore's size poses a challenge to its ambitions to become a global player in artificial intelligence (AI), but it is overcoming this with its good universities, innovative culture and strong regulations, industry players say.
by Amanda Yeap · CNA · JoinHaving spent the last decade in Europe publishing papers on generative artificial intelligence (AI) and tabular data, Chinese national Zhao Zilong, 33, was surprised when he received an opportunity to work half a world away.
The papers he had written while pursuing his postdoctoral research had intrigued a Singaporean entrepreneur – so much so that the latter flew to the Netherlands in 2023 to meet Dr Zhao.
While the decision to leave his career and wife behind was difficult, Dr Zhao said the excitement of being at the epicentre of Southeast Asia’s fast-paced tech scene made the job opportunity hard to resist.
“Singapore also has excellent universities, allowing me to work with talented colleagues. I was excited to join (the company), though it was a difficult decision since I’ve lived in Europe for over 10 years.
“But given the growing AI and tech market in Southeast Asia and Singapore’s strength in financial services, it made a lot of sense,” said Dr Zhao, now the research lead of Singapore-based AI start-up Betterdata, a synthetic data platform.
These reasons also attracted 27-year-old Burhan Ul Tayyab to move to Singapore in 2020 shortly after graduation from a university in Pakistan.
“I decided to come to Singapore after graduation because it’s one of the big tech hubs in the Asia Pacific, with many start-ups based here,” said the Pakistani, who came here to be an AI engineer for a start-up focused on military products in Singapore.
“You’re surrounded by like-minded people and top talents from the universities here… it’s a melting pot.”
After leaving the company in 2022, Mr Burhan became the chief technology officer of Kookree, a generative AI start-up.
“The regulatory process here is so quick. You can create a company in 24 hours… Ethical AI (guidelines) like PDPA (Personal Data Protection Act) are so quick to be implemented because it's built on such an efficient governance system,” he said.
Both Mr Burhan and Dr Zhao are part of a growing number of AI talent coming to Singapore as the country building up its capabilities in this fast-growing technology, particularly through its National Artificial Intelligence Strategy (NAIS), which was updated last December.
NAIS 2.0 sets out Singapore's aspiration to be a “pace-setter” by being a global leader in “choice AI areas that are economically impactful and serve the public good”.
And it will do so by, for example, intensifying the promotion of AI adoption and tripling the number of AI practitioners in Singapore to 15,000.
NAIS 2.0 also aims to establish Singapore as an “ambitious and pragmatic international partner on AI innovation and governance”.
This strategy has attracted several tech firms to set up offices here, with OpenAI, the parent company of popular chatbot ChatGPT, being the most recent entrant.
Mr Oliver Jay, managing director for international at OpenAI told CNA TODAY that its new office, opening later this year, will be a hub to support its customers and partners across Asia Pacific.
“The Singapore government recognises AI’s potential to solve some of society's hardest problems and advance economic prosperity, and we’re excited to work with them and the country's thriving AI ecosystem as we expand into the region,” said Mr Jay.
He added that the number of weekly active users in Singapore has doubled since the beginning of the year, though when asked for numbers, the company said it does not have country-specific statistics.
As NAIS 2.0 approaches its first anniversary, CNA TODAY looks at where Singapore currently stands in pursuing its AI goals, and what the country needs to become a global leader in this arena.
GLOBAL AI COMPETITION
While AI has long been viewed as the next “big tech”, recent advancements in generative AI – which produces content like text and pictures – have sparked an arms race among nations.
And it's no surprise – AI is expected to upend and transform economies and the way people live, experts said, so countries want to get ahead of it and seize a slice of the pie as early as possible.
Market intelligence firm International Data Corporation has predicted that business spending to adopt AI will have a global economic impact of US$19.9 trillion (S$26.2 trillion) through 2030.
Leading the pack are the United States and China: According to credit rating agency S&P, US private sector investment in AI between 2013 and 2023 was the highest at US$335.2 billion. Second-placed China received US$103.7 billion of private sector investments.
In that same period, the US founded 5,509 AI companies, while China produced 1,446, S&P said.
Both countries have unveiled their AI strategies — the US updated its plan last year to spell out its approach in international collaboration on AI research, while China aims to position itself as a world leader by 2030.
Countries are also ramping up their laws around AI. Stanford University’s 2024 AI Index found the number of countries with laws mentioning “AI” jumped from 25 in 2022 to 127 in 2023.
In Southeast Asia, governments are also preparing to catch the AI wave as several big tech firms have been setting up offices in the region.
Malaysia, for one, set up a national AI office on Aug 28, and is working on a five-year technology action plan, with hopes to establish a regulatory framework within 12 months.
The Association of Southeast Asian Nations (ASEAN) also launched a guide in February 2024 to promote alignment among member countries on AI governance and ethics.
When it comes to ASEAN governments’ readiness to implement AI in delivering public services, an index by Oxford Insights in 2023 showed that Singapore led with a readiness score of 81.9, while Malaysia was second with a score of 68.7.
Singapore’s preparedness so far shows it is well aware that it needs to build up its AI expertise and industry to maintain relevance on the global stage, experts said.
"As a small nation with limited resources, Singapore relies on technology to remain competitive, and AI is being rapidly integrated across key sectors such as government, healthcare, transport, and finance," said Mr Mark Tham, the country managing director of Singapore at Accenture, an IT services and consulting firm.
SINGAPORE’S AI STRATEGY
In 2019, Singapore was one of the first countries in the world to introduce a national AI strategy, which was updated in 2023.
Ms Andrea Phua, senior director of the National AI Group at the Ministry of Digital Development and Information (MDDI), told CNA TODAY she is encouraged by the growth in AI industry activity, investment figures, AI talent and centres of excellence here.
While the ministry did not provide numbers, Ms Phua said: “I think there is a very strong pipeline of people and enterprises that are motivated to upskill and uplift themselves.”
The NAIS 2.0 report stated that Singapore had over 80 active AI research faculty and 1,100 AI start-ups.
The Infocomm Media Development Authority (IMDA) runs programmes to support the growth of tech start-ups in Singapore, such as IMDA Accreditation and IMDA Spark. Currently, 89 AI start-ups are participating in these programmes.
In response to queries, the Ministry of Education said approximately 7,000 local undergraduate and 1,100 local postgraduate students enrolled in AI-related courses at autonomous universities in the 2023 academic year.
"These numbers are an approximation of enrolment into AI-related courses as AI is a sub-specialisation under the different courses," said the spokesperson, adding that over 1,300 AI-related courses are also available on the MySkillsFuture portal.
MDDI’s chief AI officer He Ruimin added that Singapore’s AI strategy works because the city-state laid the “foundational pieces” through its Smart Nation initiative.
“You have a population that knows how to go digital, businesses that transact digitally, things like cloud service providers being here – all these help provide the foundation so that AI talents that come can focus on doing AI,” he said.
Jurong GRC MP Dr Tan Wu Meng added that AI is already helping workers in healthcare and other industries — and this ability to apply AI in the real world attracts businesses.
The oncologist, who has championed the cause of AI readiness in Parliament, added: “Singapore has a legal system that respects intellectual property and provides protections for Singaporean entrepreneurs that also happens to be the kind of thing that a big firm or start-up overseas will find attractive.”
While the key elements of a sound AI strategy may be in place, experts told CNA TODAY that governance, research and adoption of AI will be crucial for Singapore to solidify its position as a global AI leader.
Dr Luke Soon, partner for Asia Pacific digital assets and support services at PwC Singapore, said: “Singapore is in a very good position to leapfrog ahead because we have a strong trust framework that attracts businesses here.
“It’s a golden opportunity for us to embed AI into humanity (and) all our industries so we can lead by example. This will not just level the playing field, but bring Singapore further apart from other countries.”
He added that AI governance is also crucial for Singapore, as there needs to be a common global understanding of what AI regulation looks like. Singapore's strong ties with both the East and West puts it in a good position to facilitate this.
SINGAPORE'S DIGITAL TRANSFORMATION
ChatGPT may have been the catalyst for AI going mainstream in late 2022, but Singapore already had plans to deepen the use of AI in 2019 when the first iteration of the National AI Strategy was launched.
The country was one of the first to introduce such a strategy, embarking on national AI projects in areas such as safety and security, education and healthcare.
Other earlier moves into AI included an investment of over S$500 million through AI Singapore for research and development.
The city-state also took the lead by launching the world’s first Model AI Governance Framework the same year.
AI Verify, an AI governance testing framework and software toolkit, was launched in 2022 and made open source for developers in June 2023.
The strategy was soon updated to NAIS 2.0, launched in December 2023.
It outlines 15 “key enablers” to achieve its goal of harnessing AI for the public good. They include:
- Boosting the AI practitioner pool to 15,000
- Intensifying enterprise AI adoption to transform industries
- Establishing Singapore as an “ambitious and pragmatic international partner” when it comes to AI innovation and governance
- Ensure a “fit-for-purpose regulatory environment” for AI in Singapore
- Strengthen the AI start-up ecosystem, including attracting AI-focused accelerator programmes
In line with this, Prime Minister Lawrence Wong announced a refreshed Smart Nation vision on Oct 1, a decade after its introduction, highlighting AI as a key component.
Smart Nation 2.0 includes a S$120 million fund for the “AI for Science” initiative, led by the National Research Foundation, to cultivate a new generation of interdisciplinary researchers.
It focuses on developing and adopting AI methods and tools that can be used across various scientific fields to improve research productivity and promote scientific discovery.
SINGAPORE’S CHALLENGES AS AN AI HUB
SMALL MARKET SIZE
But even the best-laid strategy can be constrained by certain limitations, such as Singapore’s small market size.
Mr Clement Cao, chief executive officer of global ad tech platform Mobvista, said a smaller market limits Singapore’s access to large datasets, which are essential for training advanced AI models.
This could be overcome with more collaboration among start-ups, academic institutions and large enterprises, and using larger datasets through regional partnerships, he said.
Another way to overcome the small market size is leveraging Singapore’s global hub status, said Associate Professor Kan Min Yen of National University of Singapore’s (NUS) computing school.
“(Most global companies) see the country as a nexus for activities in the region and as a bridge to other environments,” he told CNA TODAY, adding these companies do not depend on Singapore’s domestic market to generate a big revenue share.
One example is Mr Ryan Zhang, co-founder of AI-powered user interface design tool Motiff, who chose Singapore as his company’s headquarters because of its reputation as an innovation hub.
“The government’s strong support for tech start-ups, coupled with its robust intellectual property protections, creates an ideal environment for AI development,” said the Chinese tech entrepreneur.
Verizon Business, the enterprise segment of American wireless network operator Verizon, also considers Singapore a vital hub for its global operations, thanks to the country's pro-business environment and open economy.
As it adopts AI across its global offices to enhance operations, several senior executives in Singapore are part of an internal council to accelerate its AI adoption.
Mr Fu Wentao, its director of business relationship management in Asia Pacific, added that while Verizon Business’ tech teams in the US and India manage much of the back-end development and testing of products with AI, its Singapore team analyses data from these tests.
ATTRACTING AI TALENT
Another challenge for countries globally is attracting AI talent, as demand surpasses supply, start-up founders told CNA TODAY.
Mr Joseph Tey, co-founder of Singapore-based smart security solutions firm Willowmore, noted that given the high demand, talent can easily move around companies. However, it is not financially sustainable for a small enterprise to constantly hire new staff when they lose their talent to competitors.
While the ministry acknowledged the global talent competition, Ms Phua of MDDI said it is not “especially acute” in Singapore as ongoing efforts are addressing this.
Singapore’s global hub status is also advantageous in the fight for talent by enhancing workers’ access to relevant skill sets.
“With its strategic location, world-class digital infrastructure and strong government support, Singapore becomes an attractive destination for international companies looking to establish regional headquarters or innovation centres,” said Mr Aaron Goldsmid, head of product at human resources firm Deel.
“This influx of international companies not only stimulates the local economy, but also fosters invaluable skill transfer opportunities that directly benefit local talent.”
Singapore’s AI strategy is also ensuring AI talent remain here. Besides the family-friendly environment, Ms Koh Juan Zhen, 34, finds the application of her work in Singapore’s healthcare system fulfilling enough to stay put here.
The lead specialist at Synapxe’s Data Analytics and AI team said: “I have realised that in health tech, roles like mine play a crucial part in contributing to Singapore's health landscape in significant ways… which brings me immense pride.”
Some things she has worked on include an AI predictive model to identify high-risk patients with community-acquired pneumonia such as Covid-19 infections.
COMFORT USING AI
Another hurdle to overcome is helping people feel comfortable using AI and ensuring they have a clear understanding of how it works, which is essential for the smooth adoption of AI across industries.
Mr Feng Yuzhang, the head of AI practice at Singapore's Government Technology Agency (GovTech), said that implementing AI solutions often requires changes in workflows, which is sometimes met with resistance.
“So, the first step is to be open and learn how the technology can help you. Second, it’s also about creating deliberate opportunities, like hackathons or ideathons, where people can share ideas and experiment with new technologies,” he said.
“These events allow teams to build prototypes and demonstrate how technology can improve workflows, helping people see the tangible benefits.”
Mr Feng added that having well-thought-out AI solutions that sufficiently address business pain points can improve AI adoption and effectiveness.
HOW IMPORTANT IS COMMERCIALISATION?
Even if these challenges can be overcome, what does it mean for Singapore to be a global leader in AI?
The Republic might be considered a trailblazer in terms of setting international standards for AI governance, such as launching the world’s first Model AI Governance Framework in 2019.
But Singapore does not have a commercialised consumer-facing product like ChatGPT to boast about.
What it does have is SEA-LION (Southeast Asian Languages in One Network), an AI tool that can generate content based on Southeast Asian language and cultural nuances.
The large language model created by national programme AI Singapore may be the first in the region – but is this really a major achievement when the average person on the street is unlikely to have heard about it?
To this, Dr David Hardoon, the chief executive officer of AI solutions company Aboitiz Data Innovation (ADI), said: “If we only pursued things that seemed exciting at the moment, innovations like ChatGPT wouldn’t exist.
“It doesn’t bother me because (the public) will only get excited about it when it’s introduced to them, perhaps years later.”
Dr Hardoon added that meaningful discoveries often come from sustained effort, which takes time, patience, and investment.
So this does not mean SEA-LION is not worthwhile — experts said there is value in creating a sovereign AI that ensures a model is independent of external influences.
Prof Kan of NUS sees it as a meaningful niche for Singapore as its culture and heritage differ from those of its Western counterparts.
“(The project) can also serve as a testbed for understanding ethical issues and value systems imbued in AI models.”
PwC’s Dr Soon agreed, and said that every country needs its own sovereign AI trained on its unique set of data, which includes “culture, language, and colloquialisms — things unique to us”.
“We need to build our own AI based on our data to project our core values globally, ensuring our AI reflects qualities like trustworthiness and resilience, rather than solely relying on open-source models from elsewhere,” he added.
Mr Tham of Accenture said large language models will transform workplace operations significantly.
According to research conducted by his firm, around 44 per cent of current work tasks could be automated or enhanced by these models, highlighting their potential to drive efficiency and reshape job roles across industries.
“By capitalising on this niche, Singapore can distinguish itself as a leader in driving regional and domestic innovation in AI, while building the nation’s capabilities in AI R&D (research and development) and talent development.”
Instead of focusing on commercialisation, Dr Hardoon argued that Singapore could play a significant role in AI development by shifting its focus to a more research-driven approach due to its “excellent” position as a melting pot.
“This makes it an ideal location for integrating different pieces of AI research and applications, and Singapore could leverage this to become a hub where diverse AI technologies are brought together to solve real-world problems.”
EDUCATION AND CAREERS IN AI
With Singapore touted as the perfect test-bed for AI applications across industries, can its talent pool rise to the unpredictable challenges of implementation?
Experts told CNA TODAY that the future workforce will need to master creative problem-solving, adaptability, and interdisciplinary thinking — skills crucial for navigating AI’s uncertainties.
Betterdata’s co-founder Kevin Yee said that as AI advances, it can no longer be viewed as a broad, single field. Instead, there are distinct subsections within it.
“For example, some people work on AI for self-driving cars, others focus on agricultural monitoring, some specialise in facial recognition and others work on chatbots and large language models like ChatGPT.
“These are all different areas, similar to how you’d differentiate between a science teacher, a math teacher and a geography teacher,” he said.
Assistant professor of computer science Jonathan David Chase said a traditional computer science degree is still “an excellent choice” for those interested in the technical aspects of AI.
But for others interested in applying AI to a particular domain, an interdisciplinary path is viable too.
“To effectively apply AI to real-world problems, you need people who not only understand the technology, but can understand how it interacts with new problem domains,” said Dr Chase, who teaches at Singapore Management University.
“Studying both AI and fields such as law, economics, marketing and psychology develops a new dimension of capability that the modern job market is looking for.”
One thing that everyone needs some familiarity with is data, said ADI’s Dr Hardoon, as data is increasingly integral to every aspect of business.
He said businesses must learn to identify problems through a data-driven perspective, but the real challenge lies in translating that information into action.
Dr Hardoon explained that this gap is filled by “data artists” — individuals who may not be traditional data scientists but understand how to help the organisation translate data into effective strategies and business outcomes.
Similarly, Mr Philip Wee, co-founder of AI start-up Firejet, prioritises problem-solving skills over educational backgrounds. He recognised that in the fast-evolving AI field, few experts have over a decade of experience due to its relative novelty.
“So I’m looking for intelligent individuals who can break down problems and tackle them effectively. During our interview process, we use a take-home question that mirrors a challenging daily task and ask potential interns or employees to solve it.”
Professionals without a traditional computer science degree are already making strides in the AI space.
Take Ms Ng Ai Ling, a 28-year-old product lead at AI education start-up Lingosnap. She has a degree in industrial design.
“Most of the language learning materials available have a set textbook or template and lacked personalisation and customisation, and I was intrigued to address this need,” said Ms Ng.
In her day-to-day work, Ms Ng does an array of things, such as assisting in research and development and helping to shape the user experience on the Lingosnap application.
“When I first joined, I had these big ideas about AI but in truth there are limitations with technology, so I had to learn… through courses online and talking to my colleagues,” she admitted.
“The more you learn about AI, the more you see… opportunities to improve society.”
Likewise, service designer Samuel Tan, 28, who majored in anthropology, is now tasked with creating generative AI products at Temus, a digital transformation service provider.
Thanks to his mentor, he could pick up skills such as prompt engineering from scratch and learn to apply his knowledge in linguistics to build the products.
Today, Mr Tan finds the relationship between AI and humans fascinating, especially after noticing a virtual driving assistant programmed with a child’s voice.
“Imagine the difference between being told you’re approaching the speed limit by a voice that sounds like a child versus a random stranger. What’s the effect on safe driving habits?
“This shows how AI can evolve to interact with humans in a more meaningful way — not as something that replaces us, but as something embedded in our daily lives, becoming part of the conversation (rather than a competitor).”
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