Singapore’s in the top three AI nations: what’s the secret?
This year’s Global AI Index saw an unexpected high performer among the usual titans like the US and China – Singapore. Many wonder, how does the city-state with less than half the population of Japan’s capital deliver such impressive results? Turns out, it really isn’t the size – it’s how you use it.
What’s GAII?
The Global AI Index (GAII) by the UK-based Tortoise Media measures AI abilities across 62 countries. It looks at three main areas: how much money and resources are spent (Investment), new ideas and breakthroughs (Innovation), and practical use (Implementation). This index is based on the data from 28 trusted sources.
Let’s understand these areas better:
Innovation measures the quality of AI research and counts important researchers and platforms that support new AI ideas.
Investment looks at how much a country’s government and businesses spend on AI – from new startups to established companies.
Implementation is about available AI talent, AI infrastructure, and the public’s readiness to adopt AI.
How Singapore stands out
The index uses two ways to give scores to countries: Scale and Intensity. Scale is essentially about the total AI power a country has, while Intensity looks at a country’s AI capabilities compared to its population and economy (i.e., whether a country can punch above their weight).
Singapore’s ranking in this index has recently shot up. In just two years, it went from tenth place overall to third. This climb was largely due to Singapore’s very high Intensity score, showing how this city-state uses AI efficiently despite lacking in Scale.
Unsurprisingly, the US remains at the top of the list overall. China is especially impressive in Innovation, while the UK has dropped to fourth place. In the Intensity category, Singapore shines, similar to countries like Israel and Switzerland, despite having roughly 50% and 65% fewer people than Switzerland and Israel respectively.
Singapore’s AI journey
It all starts at the top. For Singapore, AI is a major game-changer, which is why it’s a big part of the country’s official plan to become a Smart Nation. The Prime Minister Lee Hsien Loong believes AI can reshape Singapore’s economy and society, improving the lives of ordinary Singaporeans and also giving the country a competitive edge globally.
In 2019, Singapore announced its National AI Strategy that aims to:
Make Singapore an AI market leader by 2030.
Use AI to advance public and private services.
Train residents for an AI future, both professional and personal.
In line with this, the Singapore government started five major AI projects. These pilot initiatives include intelligent freight planning, efficient municipal services, disease prediction and management, personalized learning and assessment, and border clearance operations. Notably, no other nation has demonstrated such a comprehensive approach to AI integration as yet (not even the US), and uniquely, Singapore possesses the advantage of being able to micromanage this plan due to its compact size and centralized governance.
Long-haul AI initiatives
AI Singapore, started in 2017, is a national program supported by the National Research Foundation, that plays a big role in the country’s stride towards AI implementation. This organization works to boost AI research and facilitate collaboration between computer scientists and ML engineers, both domestically and internationally.
At the same time, top universities in Singapore – Nanyang Technological University (NTU), National University of Singapore, and Singapore Institute of Technology – offer AI courses, preparing students for real-world AI tasks. NTU’s Lee Kong Chian School of Medicine also co-organized the iAIM2023 Conference, drawing over 500 global delegates to discuss AI’s burgeoning role in healthcare.
Granted, this may not seem like anything astounding; after all, such AI courses are available in many countries across the world. The difference is again Singapore’s size. When all three of your country’s leading universities offer immersive AI courses, while your country is roughly the size of San Francisco, you’re bound to find and educate new talent fast.
AI companies in Singapore
As a result of this nation-wide vision, Singapore’s AI business landscape has become welcoming, diverse, and vibrant. From edtech to supply chain management, companies are leveraging cutting-edge technologies to disrupt, revolutionize, or even kick-start entire industries.
In fintech, startups like Active.Ai are leading the charge, changing the way we handle finances. In advertising and marketing, startups such as affable.ai and AiChat have tapped into the immense potential of digital marketing and social media, using AI to enhance user engagement. Healthtech firms like Bot MD utilize AI to provide clinical advice and develop new drugs. Meanwhile, companies like Alethea AI and Nansen stand out with their pioneering solutions in the crypto space.
Crucially, Singapore boasts one of the lowest corporate tax rates worldwide. To bolster its startup ecosystem, the Singapore government offers significant tax incentives to new companies. Most startups can enjoy a full tax exemption on their first SGD 100,000 (roughly USD 75,000) and a 50% exemption on the subsequent SGD 200,000 (roughly USD 150,000). Clearly, such huge savings can provide the much-needed financial relief for newly established companies looking to gain traction.
Investment and growth
In terms of attracting capital, Singapore’s AI efforts are on the rise both domestically, with Singaporean companies expanding abroad, as well as internationally, with foreign companies growing their presence within Singapore.
For instance, Workato, an international AI-based integration platform for automotive workflows, was recently valued at $5.7 billion. The company plans to increase its headcount in Singapore more than five times, with 700 new jobs created by 2025. Biofourmis – a healthtech startup incorporated in Singapore – reached a $1.3 billion valuation last year, boosting investor confidence in the region’s medical AI.
At the same time, as noted by recent data published in the Wall Street Journal, there has been a significant movement of wealth from China to Singapore, further supporting the city-state’s high-tech economy. This shift is harmoniously facilitated by Singapore’s ethnic composition, where approximately 77% of its residents are of Chinese descent, with many fluent in Mandarin.
Looking ahead
Owing to limited space in Singapore, the country’s Princeton Digital Group (PDG) is planning a large data center in Malaysia and is setting sights on Indonesia with a $1 billion project. The goal is to seamlessly synergize cross-border data usage, offering a wider reach and capacity in support of AI.
Marina Bay Sands in Singapore is hosting the Big Data & AI World event – a global gathering for data specialists and ML engineers. The aim of this conference is to sharpen hands-on analytical skills and strategies to advance the field of data science and AI.
The AI DevWorld Conference, organized in partnership with AI Singapore, is the world’s largest AI development conference. With industry luminaries from companies like Spotify, Amazon, and Microsoft giving talks about their latest ML-driven solutions, the future of AI in Singapore seems to be on the upward trajectory.
Conclusion
It appears that Singapore’s AI success is in large part the direct result of the government’s clearly defined long-term vision. While the city-state’s compact size may seem like a disadvantage (and it is, when it comes to things like data centers), there’s also a flip side to the coin. The reality is that it’s a lot easier to oversee progress, particularly when we’re talking about a highly centralized government where federal and municipal are but one thing.
Now, couple that with Singapore’s already thriving economy, thanks to its lucrative connectivity to the Asia-Pacific markets, with the impressive revenues this strategic positioning brings. Then add Singapore’s status as an international, low-tax financial hub… And here’s our answer:
We have a wealthy multilingual country where the main needs of its citizens are already well addressed. With strong nation-wide AI initiatives and virtually no blind spots in implementation, AI in Singapore represents a sustainable (and affordable) investment, underscoring a meticulously monitored political ambition.