SGTech, Singapore’s leading tech association with over 1,300 member companies, has put forward bold recommendations for Budget 2025 to address urgent workforce challenges and strengthen the nation’s position in the global technology ecosystem. As the world enters a new phase of rapid technological disruption, SGTech is highlighting the need for AI-driven workforce upskilling, stronger SME support, and a global talent strategy to sustain Singapore’s competitive edge in the tech sector.
Singapore is uniquely positioned in today’s technology landscape to leverage its highly skilled workforce and strategic location to play an outsized role in the global economy. However, trends such as offshoring, talent migration, and a widening AI skills gap threaten to erode Singapore’s long-term competitiveness. Without targeted interventions, Singapore risks falling into a vicious cycle where high-value and high-skilled jobs increasingly move overseas, leaving SMEs struggling to attract and retain top talent.
SGTech’s Budget 2025 recommendations are as follows:
- Accelerate workforce upskilling driven by the adoption of AI solutions
- Strengthen Singapore’s position as a Global Talent Hub
- Increase support for SMEs' role in tech talent ecosystem
The recommendations were gathered through focus group discussions with SGTech’s Talent Steering Committee. They have been shared with the Ministry of Manpower in a concerted push for Singapore to build a global competitive edge through a tech-multiplied workforce.
SGTech's chair, Nicholas Lee, said: “Our Budget 2025 recommendations are about more than just short-term growth – they are about securing Singapore’s place in the next era of global technology leadership. Singapore is at a pivotal moment in shaping its future as a technology hub, and we have massive potential to play an even bigger role on the world stage. Without a major shift in how we develop and retain tech talent, we risk losing high-value roles to offshoring, therefore diminishing our capacity for innovation, and weakening our international influence in the tech sector.
To achieve such success, we must act decisively to ensure that our workforce remains competitive, our SMEs are empowered, and our talent ecosystem is positioned for long-term success. We stand at a critical juncture, and as a nation ready to future-proof our workforce, we must seize the opportunities we have spotlighted thus far.”
Accelerate workforce upskilling by driving adoption of AI solutions
SGTech recommends stronger partnerships between government agencies and industry associations to drive AI adoption among SMEs. While existing government initiatives have made progress in reskilling workers, there is a need for a more coordinated and proactive approach to integrating AI skills into the workplace.
By curating pre-approved AI solutions and showcasing successful use cases, companies can better understand the practical benefits of AI and be encouraged to invest in digital transformation. Business consultancy support should be enhanced to help SMEs identify and implement AI-driven productivity improvements.
Additionally, SGTech proposes the introduction of structured, workplace-based training workshops to help companies assess and integrate AI solutions effectively. Existing reskilling programmes such as the Career Conversion Programme should be expanded to support workers transitioning into AI-driven roles, while industry-driven curriculum development should ensure that training remains aligned with evolving business needs.
Strengthen Singapore’s position as a global talent hub
SGTech recommends increased financial support for overseas placements, secondments, and inter-company exchanges to help Singaporean professionals gain crucial international experience. SMEs, which often lack the resources to facilitate such mobility, should be supported through co-funded global talent exchange programmes that enable them to send employees abroad and bring in expertise from overseas.
Additionally, SGTech recommends that Singapore’s immigration policies emphasise a skills-based approach, rather than a traditional focus on academic qualifications and salary thresholds. This would plug vital skill gaps in growth sectors, including jobs in the Ministry of Manpower’s Shortage Occupation List. Local talent development programmes can also be coupled with such immigration policies, to ensure the transfer of skills through internships, apprenticeships and career conversion programmes.
SGTech’s co-chair of the Talent Steering Committee, Sharon Teo, said: “Too often, tech talent gravitates toward multinational corporations, leaving SMEs struggling to attract the expertise they need. However, SMEs offer a unique learning environment where professionals have opportunities to accelerate their professional development, by utilising hands-on skills and taking on end-to-end responsibilities. By incentivising SME-led training and adopting a skills-first hiring approach, we can build a more agile, competitive workforce."
Increase support for SMEs' role in tech talent ecosystem
SGTech proposes a multi-pronged approach for tech talent to view SMEs as potential employers and boost talent in the SMEs sector. On-the-job training initiatives, such as apprenticeships and internships, should be expanded to provide young professionals with structured learning opportunities in SMEs.
To further incentivise talent to join SMEs, co-funded SME scholarship schemes for polytechnic and ITE graduates should be introduced for apprenticeship-style programmes. Further recommendations on this include the provision of financial incentives to SMEs to offer industry-relevant learning opportunities through government-funded training.
SGTech will bring together over 600 business leaders and policymakers in tech and across industries at the SGTech Industry Gala 2025 on 28 March 2025. This year’s theme, “Tech Transforms Life”, celebrates the remarkable achievements of industry leaders who have been pivotal in advancing sustainable practices, talent development, and digital transformation within their organisations or have made a positive impact on other organisations.
