Singapore’s vision to be a global AI powerhouse received a S$1 billion boost last week to propel it forward for the next five years.
Announced in the Singapore Budget 2024 on February 16, the funds will be partly used to secure access to the heavy-duty graphics processing units (GPUs) – currently there is a global shortage of such chips – which are vital to ensure that AI projects are not hindered.
Industry collaboration will be stepped up with leading companies encouraged to set up their AI centres of excellence here which will also enable the development of AI talent.
There are two critical fronts where the billion-dollar investment can be harnessed:
1. Centralised compute
GPUs are the foundation of AI but they come at a premium. Part of the funds should be used to create a centralised AI computational resource that can be shared by startups, universities and R&D agencies to support development of AI projects and fuel innovation activities.
I expect this will involve partnerships with chipmakers and cloud service providers. In December, Nvidia CEO Jensen Huang visited Singapore where he held talks with the government. Securing Nvidia’s much-desired GPUs must have been a crucial discussion item.
Earlier this month, Singtel announced its AI factory, a new data centre gearing up for the AI era and which will be ready in early 2026. In November, Nvidia inked an agreement with Singapore-based crypto miner Bitdeer to provide AI computing power in Asia. These offer potential partnerships for Singapore.
A potential project that can be supported by the computational resource is the creation of “sovereign” AI archive, a foundation model to reflect Singapore’s unique multi-racial culture and values. This would be critical as information inferred from GenAI models will be attuned to the society and norms of Singapore.
This project should go beyond and above the S$70 million initiative to develop Southeast Asia’s first large language model announced in December last year. Understandably, this initiative is in the spirit of Asean cooperation, but here’s an opportunity for Singapore to lead the way in the region.
Such an effort will also contribute to Singapore’s capabilities in AI research and innovation as well as talent development.
2. Skills arsenal
Singapore needs 15,000 AI professionals over the next few years, the government has said. While the universities have increased the intake of students in computer science and related fields, the focus should also be retooling mid-career professionals, especially those most vulnerable to technological change. The Singapore Budget have also allocated funds for their retraining and upskilling.
Instead of leaving skills development to the workers, employers should take charge as they are best positioned to identify the future skills needed for emerging AI job functions.
It is also myopic to focus too much on technical skills in the age of GenAI where coding and debugging might be automated. Language proficiency, communication and critical thinking are the new skills to remain relevant.
Companies are already on the lookout for new AI positions that go beyond coding such as prompt engineers and design specialists who are experts at getting the chatbot to deliver specific outputs. Also in demand: AI trainers who “teach” and refine the AI models, along with AI governance professionals and AI compliance officers.
Employers should also not under-estimate the power of seasoned professionals in areas like marketing, sales and finance.
As a software developer friend informed me, these domain experts can become invaluable business translators, bridging the gap between business and technology, translating business goals into effective AI solutions.
The Singapore Budget gives weight to the long-term vision of the government. It comes at a time when every nation, from the United States and England to United Arab Emirates and China, is vying for AI dominance.
The S$1 billion allocation is a strategic move. Singapore must use it wisely to secure its position as a leading smart nation in the AI era.
