Singapore has announced plans to inject around £740m (S$1.2bn) into AI development over the next five years,

The substantial investment, announced by Deputy Prime Minister Lawrence Wong on Friday (16 February, 2024), hopes to further strengthen Singapore’s position as a global business and innovation hub.

In 2023, Silicon Box, a semiconductor integration company, announced the launch of its $2bn semiconductor manufacturing foundry in Singapore.

Located in Tampines, the chip factory is expected to create more than 1,000 jobs with the backing from the Singapore Economic Development Board (EDB).

Silicon Box’s facility marks a step forward for Singapore’s ambition to expand its manufacturing industry by 50% by 2030.

It is also expected to increase Singapore’s appeal as a desirable location for AI, as semiconductor businesses look to diversify their manufacturing supply chains amid rising geopolitical concerns.

Wong emphasised the importance of securing access to advanced chips for AI development and deployment.

Singapore was among the first countries to publish an AI plan in 2019. In December 2023 it launched an updated version of the strategy, outlining ways to harness and use AI for economic empowerment.

The city-state took a proactive stance in AI governance by introducing AI Verify in May 2022 – the world’s first AI governance testing framework and software toolkit for companies.

Companies like Google, Meta, and Microsoft have already tested the AI Verify tool and provided feedback, demonstrating a collaborative effort towards promoting responsible AI use.