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accessibility. The participation of SMEs in the AI transformation process is particularly
important. First, it helps broaden the growth base and limits productivity polarization
between large and small enterprises. Second, when SMEs adopt AI to optimize costs and
improve management, micro-level efficiency is translated into macro-level growth. Third,
the participation of SMEs shows that Singapore's policies supporting technology access
and computing infrastructure have yielded practical results. At the systemic level, the
diffusion of AI in SMEs increases the “digital depth” of the economy. This reinforces the
observation that Singapore's digital economy does not grow based on a few leading
enterprises but on a widespread network of businesses capable of applying technology.
3.2. Singapore’s NAIS 2.0 strategy: an ecosystem approach to ai governance and
growth
The announcement of NAIS 2.0 in December 2023 marks a shift from an “AI project
deployment” approach to building a comprehensive AI ecosystem architecture, in which
AI is positioned as a national strategic capability (Smart Nation Singapore, 2023). Unlike
the 2019 strategy, which focused on specific priority areas, NAIS 2.0 is structured around
3 Systems and 15 Strategic Actions, covering the entire AI value chain: from application
demand and talent supply to infrastructure and governance. This structure reflects a
policy mindset oriented towards “ecosystem synchronization” rather than promoting
technology in a fragmented manner.
Table 3: 15 strategic actions in Singapore’s NAIS 2.0
Strategic Action Description and Objectives
System 1 – Activity Drivers
- Encourage both AI producers and users to
1. Anchor new AI conduct value-creation activities here
“centers of
Industry excellence. - Work with industry champions to identify and
promote sectoral centers of excellence
2. Strengthen the AI - Attract more venture builders
Startup Ecosystem - Develop more accelerator programs
3. Improve public - Develop AI strategies to address challenges
Government
service productivity - Optimize business lines with AI
- Be selective in AI research priorities
- Foster industry-academia collaboration
4. Update national
Research AI research and - Recruit top AI researchers
- Operate graphics processing units (GPUs) for
development plans
Singapore’s research community
- Expand international research collaboration
System 2: People & Communities
- Set up a dedicated team to identify them and
5. Attract the integrate them into Singapore’s ecosystem
world’s top AI - Create novel value propositions such as hybrid
creators working arrangements, part-time employment,
Talent and partnerships.
6. Increase the AI - Redesign the AI Apprenticeship Program to
talent pool to increase trainee positions
15,000 from about - Expand the number of company attachments
4,500 currently - Remain open to global talent
Capabilities 7. Accelerate - Enhance the enterprise digitalization toolkit

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