Singapore is standing at a defining moment in its technological journey.
Among the world's first nations to establish a comprehensive AI strategy in 2019, the city-state recognised early on that artificial intelligence (AI) is greater than another wave of innovation — AI is essential for its continued prosperity.
Backed by over SGD$1 billion in government investment in AI compute, talent and industry development over the next five years, Singapore has led the development of regional large language models like SEA-LION and MERaLiON, positioning itself as Southeast Asia's AI gateway.
Among the milestones, Singapore now ranks first globally on the International Monetary Fund's AI Preparedness Index, demonstrating the progress the country made across digital infrastructure, human capital, innovation, and legal frameworks.
With a foundation established, there remains untapped potential to amplify these investments into even greater adoption and impact. An IDC research and paper on Sovereign AI, supported by Dell and Nvidia, found that a third of government agencies are now deploying sovereign AI solutions. In the private sector, about two-thirds remain in the early AI adoption stages, with few reaching advanced levels to date.
Building on three critical areas — optimising AI infrastructure, driving broader adoption across industries, and cultivating world-class AI talent — will be key to establishing and maintaining a country’s regional AI leadership.
Creating the AI infrastructure
Singapore's path to AI leadership starts with optimising infrastructure — by maximising computational power while minimising physical footprint. Already home to 60 percent of Asia Pacific’s data centres, further advancing data centre energy efficiency will drive AI infrastructure expansion, while at the same time navigating the constraints of limited land availability.
Singapore also sees public-private partnerships as the key to advancing this vision. The government is playing a crucial role by offering incentives and strategic land planning, while the private sector is designing solutions that can meet local needs and driving collaboration across the supply chain.
A good example of this approach is the Sustainable Tropical Data Centre Testbed initiative aimed at bringing government and industry players together to fast-track the adoption of innovative and sustainable cooling solutions and setting new environmental standards for data centre operations in tropical regions globally.
The country is also looking at other advanced technologies like digital twins and AI-powered platforms that can also enable more efficient computational resources management. When integrated with real-time energy grid data, these systems can forecast and prioritise workloads based on business needs, energy availability, and cost with remarkable precision, boosting energy efficiency.
By embracing energy-efficient infrastructure solutions, Singapore has the opportunity to unlock a virtuous cycle where sustainable innovations boost the cost-effectiveness of AI operations, while enhanced AI capabilities can accelerate the progress towards sustainability goals.
Bridging the gap between vision and adoption
While Singapore has established early progress in AI governance, the nation can still enhance its framework to better serve evolving development needs. Although businesses have shown strong ambition in their AI strategy, research has shown that only 14 percent of companies have successfully scaled AI enterprise-wide over the past three years, highlighting a gap between ambition and execution. An EY Responsible AI Pulse survey revealed that less than half of senior executives in Singapore acknowledged ongoing challenges with developing enterprise AI governance frameworks.
To overcome these hurdles, regulatory clarity is crucial. Intent-based AI guidelines — focused on purpose and outcomes rather than technical restrictions — play a critical role. This approach addresses industry concerns about inadvertently breaching data security regulations while preserving the flexibility needed for innovation.
- Andy Sim, Vice President and Managing Director, Dell Technologies, Singapore
Expanding successful initiatives like Singapore's GenAI Sandbox 2.0 would also help enterprises safely experiment with AI applications. These controlled environments empower businesses to prototype solutions, test compliance, and refine approaches before deployment, reducing both technical and regulatory risks while lowering implementation costs.
By combining clear governance frameworks with strengthened and targeted policy support, Singapore is in a good position to realise its substantial AI investments as measurable economic returns and societal benefits, while improving its position as a regional AI powerhouse.
The importance of finding the talent pool
AI comprehension is no longer a "nice-to-have" skill. It is fundamental to maintaining Singapore’s competitive edge and unlocking its full economic growth potential. The government has set a goal to triple its AI talent pool by 2030 and undergo substantial workforce upskilling.
To complement government programs like SkillsFuture Singapore and TechSkills Accelerator, enterprises must take a more active role in workforce transformation. This means providing clear guidance on AI usage, ensuring access to comprehensive learning tools, and developing industry-specific training programs for all employees.
Crucially, organisations are encouraged to cultivate an adaptive learning mindset across their workforce, empowering employees to continuously upskill and evolve alongside AI's advancing capabilities. A Dell study found that three out of four businesses are today focusing on building internal skills and increasing in-house capabilities while also partnering with third-party vendors.
Partnerships between enterprises and educational institutions are also key to cultivating fresh talent. By co-developing curricula according to industry needs, employers can help equip graduates with relevant, job-ready skills. This creates a self-sustaining ecosystem in which students can gain hands-on skills and employers get access to skilled talent. Combined, they can both build a robust pipeline of AI talent for the country to meet future demands.
Seizing Singapore’s AI moment demands accelerated action across all fronts and presents compelling opportunities for continued collaboration. The government can look to invest further in energy-efficient AI infrastructure and continue evolving its AI governance framework.
At the same time, enterprises must leverage their expertise to drive innovation, supporting progressive AI governance and prioritising workforce transformation. Through coordinated public-private efforts, the country can further solidify its expertise and fluency in AI and build a successful future.
Andy Sim is the Vice President and Managing Director, Dell Technologies, Singapore.
