How your Artificial Intelligence (AI) tech startup can grow further in Singapore

Generative artificial intelligence (AI) is impacting existing industries and reshaping how business is done.  There is an urgent need for businesses to identify use cases and enhance their capabilities to capitalise on emerging growth opportunities.

Singapore is committed to fostering a robust environment for AI innovation and two Singapore government agencies, the Infocomm Media Development Authority of Singapore (IMDA) and Singapore Global Network held a sharing session on the sidelines of TechCrunch Disrupt 2023, which took place in San Francisco in September.

Dr Andrew Ng, General Managing Partner at venture studio AI Fund gave a keynote presentation focusing on AI developments globally and trends in Singapore. He also participated in a lively panel discussion with Darius Liu, Head of Strategy, Partnership and Growth at Singapore’s national AI development programme AI Singapore; Joshua Wong, Co-founder and CEO of AI-powered content creation and management platform Hypotenuse AI; and Marcus Tan, Co-founder of re-commerce second-hand marketplace Carousell.

Here are the key takeaways on why it is an opportune time for AI startups to leverage Singapore as a launchpad for success in Asia.
 

#1 A forward-leaning regulatory landscape

Businesses in Singapore are seeking AI solutions more actively than those in other markets to deliver value-added products and services. The government is supporting companies in various industries like finance, professional services and even healthcare to develop applications powered by Generative AI models.

For example, the Monetary Authority of Singapore’s Financial Sector Technology and Innovation Scheme includes an Artificial Intelligence and Data Analytics (AIDA) grant designed to help Singapore-based financial Institutions, FinTechs, or Industry consortiums, by co-funding qualifying expenses, capped at S$500,000.

Projects must be designed to promote AIDA adoption with the objective of driving improved decision making and generating better insights through AIDA applications^1,2.

Said Liu, “From a regulatory, business and market development standpoint, the regulatory landscape is robust yet accommodating [creating a] very fertile ground for innovation and adoption.”

For healthcare, there are AI platforms and startups that are utilising Singapore’s established healthcare records to develop solutions, said Dr Ng.

One such example is health technology agency Synapxe's AI-assisted screening programme, which can identify patients who are at a high risk of readmission. Once identified, the hospitals can design community health and social support plans for such patients, reducing their likelihood of readmission³.

Other AI driven programmes are readily being implemented in hospitals countrywide, highlighting an eager market that AI startups can plug into³.

IMDA’s Chief Executive Lew Chuen Hong commented that Singapore has sandboxes and enthusiastic lead users. He highlighted that the sandboxes provide startups the opportunity to work closely with regulatory bodies to facilitate innovation. Tech startups from many fields would be able to leverage these platforms, enabling them to commercialise their AI-based products or develop suitable use cases.

The AI Trailblazers Initiative provides such a sandbox, where Singapore-based businesses can tap on Google Cloud’s AI toolsets to create generative AI products, hence accelerating the development and adoption of AI solutions⁴ .

#2 Vibrant community of partners for support and recruitment

Startups in Singapore can rely on an open and vibrant community, where they can reach customers and tap into synergies with collaborators. Wong acknowledged Singapore’s community for being fast-moving and supportive of his startup when it was searching for clientele and support.

He noted that startups can tap these networks to help them validate demand and minimise risk.

He also shared, “The strong local community doubled as a testbed early on. [They also helped us] in fundraising. I think there’s a growing community of ex-founders in Singapore [who have become] investors that can move quickly.”

AI startups in Singapore can also look forward to a robust pipeline of local talent supported by the Singapore government via incentivising company-led training and school programs. Companies like Amazon Web Services have also collaborated with local polytechnics to train more than 3,800 students and professionals in generative AI skills over the next three years⁵.

#3 Launchpad into a booming regional digital economy

Southeast Asia offers exciting opportunities for tech and AI startups. The population is increasingly young and digitally-savvy, and businesses are increasingly looking to harness technology and AI^6,7.

Wong said the market was largely underserved and hence this was a good reason for global companies to consider expanding to Southeast Asia.

“[If you] are building to target customers like brands, e-commerce, government organisations, traditional businesses, there is actually a lot less competition in Asia […] It is also at a point in which there are not enough companies solving these problems in Asia, and the market now is ripe for it,” said Wong.

Tan agreed, mentioning that the opportunity in Southeast Asia was the reason why he decided to set up his startup in Singapore.

“More than two-thirds of the population of 670 million people⁸ are on the internet, and they're looking for applications. They're looking for AI solutions. And we're just super excited to solve the meaningful problem of making second-hand the first choice in Southeast Asia. We are blessed to have started in Singapore because it is a launchpad to the region."
 

#4 Get mentorship and funding

When based in a financial capital like Singapore, startups can expect to find a growing number of investors, said Dr Ng.

Startups can also gain valuable insights from mentorship opportunities. Tan credited Carousell's early success to valuable advice from Singapore-based mentors, who later became their investors.

He said, “We were very fortunate to have mentors who helped us validate what to test and what signals to [look for to determine success] during the first three to six months of our journey.”

Those signals included metrics like weekly active users, which indicated that Carousell was providing a solution their users truly desired and solving a real problem. Tan shared that tracking and growing such metrics was crucial. Carousell is a consumer-centric re-commerce platform that facilitates the reselling of used products and thus relies on resultant network effects to grow.

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¹Overview of Regulatory Sandbox. https://www.mas.gov.sg/development/fintech/regulatory-sandbox.
Accessed 14 Nov. 2023.

² Financial Sector Technology and Innovation Scheme (FSTI 3.0). https://www.mas.gov.sg/schemes-and-initiatives/fsti-scheme.
Accessed 14 Nov. 2023.

³ Abisheganaden, John, et al. “Lessons Learned from the Hospital to Home Community Care Program in Singapore and the Supporting AI Multiple Readmissions Prediction Model.” Health Care Science, vol. 2, no. 3, June 2023, pp. 153–63. DOI.org (Crossref),https://doi.org/10.1002/hcs2.44.

⁴ “MCI, DISG, SNDGO and Google Cloud Launch AI Trailblazer Initiative to Accelerate the Development of Impactful Generative AI Solutions in Singapore.” EDB, 24 July 2023, www.edb.gov.sg/en/about-edb/media-releases-publications/mci-disg-sndgo-and-google-cloud-launch-ai-trailblazers-initiative-to-accelerate-the-development-of-impactful-generative-ai-solution-singapore.html.
Accessed 7 Nov. 2023.

⁵ Stepping up Digital Training to Meet Growing Demands of Tech Industry. 1 July 2021, https://www.edb.gov.sg/en/news-and-insights/insights/stepping-up-digital-training-to-meet-growing-demands-of-tech-industry.
Accessed 7 Nov. 2023.

⁶ SVyas, Roman Kumar. “Council Post: 3 Reasons Southeast Asia Is A Hot Market For Tech Startups.” Forbes,https://www.forbes.com/sites/forbesbusinesscouncil/2022/05/17/3-reasons-southeast-asia-is-a-hot-market-for-tech-startups/.
Accessed 7 Nov. 2023.

⁷ “How Digitalization Is Making South and Southeast Asia Engines of Growth.” World Economic Forum, 10 Feb. 2022,https://www.weforum.org/agenda/2022/02/digitalization-south-southeast-asia/.
Accessed 7 Nov. 2023.

⁸ ASEAN STATISTICAL HIGHLIGHTS 2023. ASEAN Secretariat, Sept. 2023, https://www.aseanstats.org/wp-content/uploads/2023/10/ASH-2023-v1.pdf.