Government sets aside over S$45 million across three years to support AI use among manufacturers

The government has put aside more than S$45 million (US$35 million) across three years to support AI use among manufacturers, according to CNA. Minister of State for Energy, Trade and Industry Gan Siow Huang announced the sum on Wednesday (Oct 21).

Enterprise Singapore's (EnterpriseSG) Catalytic AI Solutions initiative for advanced manufacturing is where the money will be directed. Ms Gan, speaking at Industrial Transformation Asia-Pacific 2026, said it will give manufacturers access to ready-to-deploy AI solutions.

Tools for smaller firms

A suite of AI solutions aimed at small and medium-sized enterprises (SMEs) will also be provided by EnterpriseSG. These cover optimising product and component design, automating the handling of request for quotation documents, and improving production scheduling and predictive maintenance. Eligible companies will get co-funding from EnterpriseSG to adopt solutions in the suite. As more industry needs and solutions are identified, the suite will be enlarged.

EnterpriseSG said in a media release that the solutions could cut manual work and response times, make equipment more reliable and help maintain consistent product quality.

Development costs, limited access to sector-specific solutions and uncertainty over outcomes can make adoption difficult, even though many SMEs see AI's potential, EnterpriseSG said. By pooling AI solution providers, system integrators and industry associations, the initiative lets SMEs draw on proven solutions rather than building their own. Ms Gan said some SMEs have already shown interest.

EnterpriseSG is also developing Catalytic AI Solutions for logistics and wholesale trade, with details to come later.

Research centre moves to next phase

Among the four sectors targeted under Singapore's National AI Missions, which also include connectivity, finance and healthcare, is advanced manufacturing. Nearly 20 per cent of Singapore's GDP comes from manufacturing. "Our aim is to reimagine manufacturing to grow our manufacturing output and productivity," Ms Gan said.

The AI Centre of Excellence for Manufacturing (AIMfg) will enter its next phase, backed by the Research, Innovation and Enterprise 2030 plan. It was established in 2024 by the Ministry of Energy, Trade and Industry together with A*STAR. Across 30 manufacturers in sectors such as aerospace, semiconductors, pharmaceuticals and energy, it has collaborated, and it has finished 23 projects that saw AI solutions deployed.

In 2025, close to one in four businesses in Singapore took up AI, compared with about one in seven the year before.

Ms Gan also launched the Singapore Embodied AI Challenge for Manufacturing. By merging AI with robotics and physical systems, embodied AI enables machines to perceive, reason and act in the real world. The National Robotics Programme, A*STAR and PINE Lab@NTU are organising it, and the first edition starts with a semiconductor manufacturing use case from chipmaker Micron.

Budget 2026 expanded the Enterprise Innovation Scheme to cover qualifying AI expenditure, and widened the Productivity Solutions Grant to more digital and AI-enabled solutions. It also introduced the Champions of AI programme.