Businesses urge tech adoption, AI support in Budget 2025

Stakeholders emphasised the need to boost technology adoption, particularly for SMEs.

Members of the technology and business sectors are pushing the government to include in the 2025 budget programmes that will support the integration of latest innovations especially amongst small and medium enterprises (SME).

Koren Wines, managing director for Xero Asia, said there should be “more measures to accelerate the adoption of these transformational technologies, particularly in data-intensive areas such as financial management.”

“This could include expanded grants for digital solutions to manage cash flow pressures, and mentorship initiatives to help businesses effectively integrate these technologies,” she noted.

Wines said closing the skills gap is also important, which can be done by upskilling or reskilling the workforce to strengthen their digital literacy and capabilities as well as enhance their future readiness.

Recognising the struggle of SMEs to catch up with the adoption of artificial intelligence (AI), Yogesh Sangle, global head of Instarem, said the spending plan in 2025 can address this by offering targeted grants for AI training and implementation.

“Subsidies for SMEs to experiment with AI-driven tools, combined with continued workforce upskilling initiatives, would go a long way in helping businesses keep pace with larger players,” he added.

Expanded support through initiatives under the new budget, like the SkillsFuture Enterprise Credit, could also accelerate tech adoption, said Niko Walraven, area vice president APAC, Neat.

Dan Bognar, Vice President & Managing Director, JAPAC, HubSpot, meanwhile, said the company anticipates “targeted guidance for SMEs to further adopt and realise the considerable potential of digital solutions.”

Giving SMEs the tools and tech know-how for digital transformation boosts their success and Singapore's digital economy, the official said.

In terms of food innovation, Nourish Ingredients CEO James Petrie expects continued support for food technologies like precision fermentation and biotechnology manufacturing, helping them move from pilot to commercial scale. Private-public partnerships will further drive innovation, enhance food security, and create high-value jobs for Singaporeans, he added.