1. Southeast Asia’s AI adoption outpaces the global average
New research from McKinsey, EDB, and Tech in Asia underscores that Southeast Asia has entered an era of AI opportunity, with 81 per cent of companies in the region moving beyond experimentation into pilot and scaling phases. The “AI in Southeast Asia: An Era of Opportunity” report, which surveyed 330 respondents from different industries and company sizes across six ASEAN markets, also uncovered that nearly 90 per cent of companies plan to experiment with agentic AI. Download the full report here >>
While the organisational push for AI is high, the research highlights persistent hurdles across Southeast Asia: one in five executives identify talent as the top challenge, alongside concerns around data quality, integration complexity and clarity on returns. Singapore’s AI ecosystem is designed to address these barriers, combining deep talent, advanced infrastructure, targeted programmes and clear governance so companies could scale AI with confidence. The country hosts 60+ AI Centres of Excellence, and initiatives such as AI Singapore’s AI Apprenticeship Programme help strengthen the talent pipeline for businesses to tap on.
2. Singapore steps up AI ambitions with S$1 billion investment in public research and talent
Singapore is stepping up long-term investment in AI research and talent, setting aside S$1 billion over five years to boost public AI research capabilities under its RIE2025 and RIE2030 plans. The new funding focuses on three key areas: fundamental AI, applied AI, and talent development and will support use cases in sectors such as manufacturing, trade, health, and urban solutions. The investment also deepens the talent pipeline through national AI programmes, enhanced scholarships, research opportunities, and the AI Visiting Professorship, which brings world‑class researchers to collaborate with local teams on cutting‑edge AI projects.
Beyond direct research funding, Budget 2026, unveiled on 12 February, sharpens Singapore’s national AI push with a new National AI Council chaired by Prime Minister Lawrence Wong. The Council will run alongside a set of national AI missions to drive AI‑led transformation in advanced manufacturing, connectivity, finance and healthcare. To help businesses participate, the Enterprise Innovation Scheme will be expanded to cover AI‑related expenditure with enhanced tax deductions, while new programmes such as “Champions of AI” and an expanded TechSkills Accelerator (TeSa) will support enterprise transformation and workforce upskilling so companies can build and deploy AI solutions in a sustainable, scalable way.
3. Industry moves: More leading global companies deepen their roots in Singapore’s AI ecosystem
Leading firms are continuing to choose Singapore as a launchpad for their AI initiatives across the Asia-Pacific region:
- Johnson Controls announces S$60 million expansion of its Innovation Centre over the next five years
The global leader in smart and sustainable building solutions said that this strategic move is designed to address the surging demand for sustainable data centre infrastructure across the Asia Pacific. With the region currently capturing approximately 30 per cent of global data centre capacity, the expansion positions Singapore as a critical hub for high-efficiency thermal management, advanced cooling strategies, and low-carbon technologies. The investment will also see Johnson Controls expand its local engineering team to approximately 100 roles, deepening expertise in intelligent automation and robust cybersecurity. - Oracle partners Digital Industry Singapore (DISG) to accelerate AI transformation across 300 Singapore-based enterprises
The company has committed resources in the form of cloud credits, training, certification and discovery workshops up to S$250,000 per company. This is in addition to the S$1.9 million investment Oracle has pledged to enhance private cloud infrastructure for enterprises. This initiative specifically targets sectors managing sensitive data, such as Critical Information Infrastructure, ensuring they can leverage low barriers to scale AI capabilities. Oracle has plans to also equip 10,000 students and professionals in Singapore with advanced digital skills by 2027. - Micron Technology breaks ground on a new, state-of-the-art wafer fabrication facility in Singapore
Located within Micron’s existing NAND manufacturing complex, this expansion is designed to meet the escalating global demand for advanced memory and storage solutions driven by AI and data-centric applications. NAND, which stands for “Not AND,” refers to the logic structure within the memory cells on semiconductor chips. The facility, which will feature Singapore’s first double-story wafer manufacturing cleanroom, is scheduled to begin production in the second half of 2028. - Revolut announces plans to further expand its Singapore operations to serve as a strategic regional anchor for Asia
With investment from EDBI, FinTech leader Revolut Singapore aims to accelerate product innovation and scale its financial services to the region. A primary focus of this expansion is the development of highly-skilled capabilities in engineering, data science, and AI. After doubling its headcount in 2025, the company intends to triple its workforce over the next three years, reinforcing Singapore’s status as a premier global hub for fintech and digital innovation. From its Singapore base, Revolut will drive regional growth efforts, including the evaluation of new market entries across Asia. - TBWA\Singapore launches its first Innovation Lab in Singapore
The lab will serve as a regional Centre of Excellence spearheading AI-led brand innovation across Asia-Pacific. The lab serves as a strategic proving ground for companies to translate emerging technologies into scalable brand experiences. Unlike traditional innovation processes, this facility prioritises rapid prototyping and early-stage proof, allowing brands to test and refine ideas in weeks rather than months. By placing AI at the core of its operations, TBWA\Singapore is collapsing timelines for insight, ideation, and production. - Ambiq announces a multi-year research and development (R&D) programme in Singapore to advance next-generation edge AI technologies
The semiconductor company’s expansion plans include the establishment of a new office to house growing teams across research, engineering, design, and business development. Ambiq is also deepening its collaboration with Singapore’s Institutes of Higher Learning, public research institutions, and local SMEs to foster talent development and applied research. This expansion is expected to further the development and licensing of Ambiq's proprietary Subthreshold Power Optimized Technology (SPOT®), which enables intelligence to be processed directly on devices such as wearables. - MediaTek and Singapore University of Technology and Design (SUTD) establish a joint research laboratory dedicated to advancing 6G technology
The strategic S$34 million collaboration marks the semiconductor giant MediaTek's first joint lab in Singapore and aims to accelerate the development of AI-powered, satellite-connected, and sustainable wireless networks. By combining SUTD’s academic research excellence with MediaTek’s industrial expertise in chipsets and wireless modems, the lab will bridge the gap between theoretical research and real-world industrial application. This initiative reinforces Singapore’s status as a leading global hub for semiconductor innovation and advanced communications research.
4. Aerospace giants Thales, Rolls-Royce, and GE Aerospace strengthen their technological footprints in Singapore through new MOUs
- Thales deepens its digital core by establishing Singapore as one of its three global R&D centres for FlytEDGE
The signing of three Memorandums of Understanding (MoUs) signals Thales’ continued investment in Singapore, where it will develop home-grown Advanced Manufacturing solutions while transforming its industrial operations. The group is also scaling its Cyber & Digital Manufacturing Competence Centre with advanced robotics and launching locally developed AI-enabled services to ensure cybersecurity and regulatory compliance for highly regulated industries. - Rolls-Royce signs an MoU to explore technology advancements in aerospace manufacturing and MRO operations
This includes plans to enhance regional technology capabilities and to establish an AI Centre of Excellence to unlock the potential of agentic AI for Power Systems applications. - GE Aerospace announces a substantial S$385.7 million multi-year investment to bolster its engine repair capabilities from Singapore
This five-year plan integrates AI-enabled inspection, predictive maintenance, and advanced automation to accelerate turnaround times and enhance service delivery for its global customer base. GE Aerospace will also establish its own AI Centre of Excellence in Singapore, focusing on a data fabric ecosystem to elevate MRO and on-wing support.
