SINGAPORE Trends and Developments Contributed by: Terence Quek, Benjamin Cheong, Favian Tan and Rajesh Sreenivasan, Rajah & Tann Singapore
M&A activity in the TMT sector both globally and regionally. Despite the resilience of Singapore’s economy, Singapore remains a small state with an open economy, and it is not entirely insulated from the crosswinds caused by a challenging global environment. Singapore’s investment in AI To ensure the continued competitiveness and leadership of Singapore in the global digital landscape, the Singapore government unveiled Singapore’s National AI Strategy 2.0 (NAIS 2.0) in December 2023. The new strategy broadens the scope of Singapore’s first National AI Strat- egy, which focused on deploying AI use in spe- cific sectors, and aims to help Singapore har- ness AI’s full potential to drive economic growth, enhance the quality of life of Singaporeans and maintain Singapore’s position as a global AI hub. The NAIS 2.0 is aligned with Singapore’s broader digital transformation goals and its vision of a Smart Nation, where AI plays a central role in various sectors such as healthcare, education, manufacturing, transport, financial services and biomedical services. In Singapore’s 2024 National Budget, the Singa- pore government unveiled an ambitious plan to invest SGD1 billion in AI development over the next five years. Singapore intends to invest up to SGD500 million from the pool of AI funds to secure high-performance computing resources to drive AI innovation and capability building. This is because Singapore needs access to robust compute infrastructure, such as graphics processing units (GPUs), to support intensive AI workloads and engender an AI transformation. To nurture AI talent in Singapore and triple Sin- gapore’s AI workforce to over 15,000 by 2029, the government will also set aside SGD20 mil- lion over the next three years for AI practitioner training for students. This funding will provide
students with access to overseas internships in AI-related roles and increase the number of SG Digital scholarships for students at the under- graduate, masters and PhD levels. The Singapore government’s policies are strate- gically crafted to drive AI investment and adop- tion across various industries, with the aim of fostering a robust AI ecosystem that supports business innovation and economic growth. These policies are expected to strengthen Sin- gapore’s AI industry, positioning it as a signifi- cant contributor to Singapore’s economy over the coming years. As the AI sector in Singapore matures, Singapore is likely to see an increase in AI-related M&A activity as companies look to expand their AI capabilities, enter new markets and enhance their technological edge. This trend is anticipated to extend beyond Singapore and drive M&A activity across the region as busi- nesses increasingly recognise the value of inte- grating AI into their strategic growth plans. By laying a solid foundation for AI innovation and investment, Singapore’s government aims not only to strengthen the local economy, but also to encourage both domestic and international businesses to invest in long-term AI ventures in Singapore. Various guidelines and frameworks have also been put in place by Singapore regulators to encourage the healthy and sustainable use of AI in their respective sectors. For example, in March 2024, Singapore’s Personal Data Protec- tion Commission (PDPC) also released the Advi- sory Guidelines on the use of Personal Data in AI Recommendation and Decision Systems. These guidelines aim to address the uncertainties busi- nesses may face regarding the use of personal data in the development and deployment of AI systems, which can otherwise hinder AI innova- tion efforts. The guidelines shed light on when
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