First examples of new cross-cutting R&D programmes under RIE2030 will be in longevity and semicon.

SINGAPORE will launch an applied artificial intelligence (AI) initiative and two kinds of large-scale, cross-cutting programmes in its next five-year Research, Innovation and Enterprise (RIE) plan, Deputy Prime Minister and National Research Foundation chairman Heng Swee Keat said on Thursday (Feb 27). (businesstimes.com.sg)

The two new programme types are Flagships that “push for value creation in key economic sectors” and Grand Challenges that address national strategic priorities, said DPM Heng on the second day of the Budget debate.

“We will finalise our investments from 2026 to 2030 later this year,” he said, but gave a preview of the RIE2030 moves.

First, the applied AI initiative will find “major use cases” in key sectors such as healthcare, education, finance, advanced manufacturing, connectivity, logistics, and transport.

Singapore has already started on this, said DPM Heng, noting the S$120 million AI for Science initiative launched last October to accelerate discoveries in fields such as advanced materials and biomedical sciences.

He added that more will be invested developing “bilingual” scientific talent: researchers with both AI expertise and domain knowledge.

Second are the Flagships and Grand Challenges. These will bring together research and translational capabilities from universities, research institutes, public agencies, and private sector players.

“The linkages between research, translation and commercialisation will be tightened, to advance key economic areas, produce new products and companies, and address real-world needs and problems,” he said.

The first Grand Challenge will look at “healthy and successful longevity”, while the first Flagship will advance Singapore’s semiconductor and microelectronics research and development. Details will be announced later.

Singapore will also step up its international partnerships in the coming years, and continue to invest in basic research, developing research talent and upgrading research infrastructure.

In addition to Budget 2025 announcements, Singapore will invest in new data and compute capabilities, he added, without elaborating.

Being future-ready

Investing in research is one of three areas in Singapore’s response to global economic changes, alongside economic transformation and strengthening the innovation ecosystem, said DPM Heng.

Budget 2025 comes amid a world that is moving towards a “multipolar economic order”, he noted. Domestic polarisation has made policymaking harder elsewhere; global political dynamics and economic flows are shifting; and climate and demographic trends continue.

Meanwhile, “game-changing technologies” such as AI, quantum computing, robotics, biotechnology, and nuclear fusion are advancing rapidly.

Singapore must find opportunities and invest to ride these changes towards a better future, he said.

On economic transformation, he noted that fewer companies are embarking on transformation projects due to geopolitical uncertainties and rising costs.

“But we must press on, to create new value-add, and stay competitive.” He urged businesses to tap Budget 2025 measures such as the S$150 million Enterprise Compute Initiative – which helps firms access AI – and the redesigned SkillsFuture Enterprise Credit.

This is even as the Budget includes a corporate income tax rebate and Progressive Wage Credit Scheme enhancements to help with costs, he noted.

Staying open to the world

Finally, Singapore must also“strengthen our innovation and enterprise ecosystem”.

One aspect is maintaining an outward orientation, said DPM Heng. Singapore can be a “living laboratory” where companies and innovators test solutions before scaling them to the region and beyond.

“We can serve as a springboard for companies to venture to a new future, to a wider world market,” he said.

Here, regulatory agencies play a critical role in enabling innovation while managing risks, he added, citing examples such as the Land Transport Authority’s facilitation of autonomous vehicle trials.

Another aspect is talent development, through both supporting Singaporeans and attracting top global talent. The Global Founder Programme in Budget 2025, for instance, aims to bring in experienced entrepreneurs to grow high-impact ventures from Singapore.

In a more contested and fragmented world, Singaporeans can act as “bridge-builders and connectors”, while Singapore can be “a trusted and neutral global-Asia node of technology, innovation and enterprise”, he concluded.