SUPPORTING SMALL BUSINESSES

MPs also highlighted the importance of ensuring that small- and medium-size enterprises (SMEs) are not left behind in AI adoption. They pointed out that while many of these businesses are open to adopting AI, they face structural gaps and uncertainty.

Ms Lau noted that many SMEs have raised concerns that they cannot afford to be “guinea pigs” in AI adoption.

“They have many personal experiences of trying out new technologies and then realising that the technologies became outdated too fast, and they are right to be cautious,” she said.

As such, the government will create lower-risk and structured ways for SMEs to experiment, she said, adding that the government is refining its funding scheme. Initially, the barrier was set-up costs, which are already subsidised.

Now, the barrier is capability and workflow redesign. Funding support will hence shift accordingly towards implementation, business process redesign, rescaling, and the “much harder work” of changing how an organisation actually operates, she said.

“We will make sure we are accountable, but we must also make sure that our SMEs – most of whom are genuine and often already tight on resources – we must make sure they do not get turned away too early by onerous and cumbersome paperwork,” she said.  

Nominated MP Mark Lee said that SMEs may lack the capacity for AI integration. AI implementation is expensive, and costs include software, data restructuring and upskilling workers, among others, he said.

“Big firms have both the talent and financial muscle to spread this fixed cost. SMEs often cannot – if transformation succeeds, gains are gradual. If it fails, losses are immediate.”

He added that support for AI adoption must hinge on clarity, or SMEs may misjudge eligibility or misallocate resources.

MP Denise Phua (PAP-Jalan Besar) agreed that SMEs cannot be an “afterthought”. “AI is at the centre of our strategy, but on the ground, many business owners are still unsure what this means for survival, not just growth,” she said.

She proposed providing precision support to them, rather than broad measures. This includes classifying firms into foundational, emerging or advanced stages of AI-readiness, so that support can be tailored to readiness.

Ms Phua also suggested the provision of government-funded AI coaches, and the strengthening of intermediaries, such as the Singapore Business Federation, the National Trades Union Congress (NTUC) and SME Centres.

“The goal is not to push every SME into complex AI systems overnight. The goal is disciplined, intentional transformation. If we get this right, AI becomes a renewal engine for SMEs. If we get it wrong, then we create a two-speed economy, not because help was absent, but because execution lacked precision,” she said.

OPPORTUNITIES FOR ALL

Beyond small businesses, MPs stressed that Singapore’s push for AI should be inclusive to individuals from different backgrounds.

To ensure an inclusive social compact, blue-collar workers in manufacturing and logistics could use “physical AI”, said Mr Gerald Giam (WP-Aljunied).

Examples include using collaborative robots to assist with heavy lifting in factories or employing AI as a translation tool for workers who struggle with English.

“AI should be an equaliser that elevates technical mastery, not a wedge that separates our workforce,” he said.

Mr Giam also proposed that the 400 per cent tax deductions on AI expenses should cover corporate AI subscriptions, to give workers access to corporate AI tools while keeping company data secure.

“Giving every worker a digital assistant should be a baseline goal for a nation that aspires to be an AI leader. This ensures that the benefits of the technology are shared by the employee and the employer alike,” he said.

Ensuring equitable access to AI starts early, noted Mr Darryl David (PAP-Ang Mo Kio).

“Before we can talk about mastering AI software and advanced tools, we must ensure that every student starts from the same baseline. AI readiness depends on digital readiness,” he said.

Advocating for personal learning devices to be extended to primary school students, he added that without reliable access to personal computing devices, students cannot develop foundational skills or experiment with digital tools in ways that will enable meaningful engagement with AI later.

In her speech, Ms Lau also said that the continued evolution of AI will call for a review of “what education means for our children”.

“AI will force us to sharpen the focus of education on what truly matters – judgment, values and the ability to work with AI, rather than to compete with it,” she said.

“How do we teach our children about AI, in particular, its limits, biases and blind spots? How do we balance the weightage of our education to emphasise character and social development?”