Budget 2025: S$150 million Enterprise Compute Initiative to enable AI access; support for internationalisation, M&A schemes enhanced
Global Founder Programme to be established to encourage entrepreneurs to anchor and grow ventures here
UP TO S$150 million will be set aside for a new Enterprise Compute Initiative to enable eligible enterprises to partner major cloud service providers and access artificial intelligence (AI) tools and computing power, announced Finance Minister Lawrence Wong on Tuesday (Feb 18).
Through the partnerships, the enterprises will also be able to access consultancy services.
In his Budget speech delivered in Parliament, Wong, who is also the prime minister, said the initiative will help enterprises “leverage AI more effectively in their transformation journey”.
“Beyond a certain stage, enterprises will need AI solutions, which are tailored to their needs and integrated into their business processes and systems,” said PM Wong.
The government will also provide more support for enterprises to scale up and compete on the global stage, by extending support schemes for internationalisation, and mergers and acquisitions (M&A).
To support local small and medium enterprises expanding overseas, the Market Readiness Assistance Grant, which helps to defray the costs of overseas market promotion, business development and market set-up, will be extended to Mar 31, 2026.
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Meanwhile, the Double Tax Deduction for Internationalisation scheme will be extended to Dec 31, 2030. The scheme allows businesses to claim a tax deduction of 200 per cent on qualifying market expansion and investment development.
The Enterprise Financing Scheme (EFS), which enables Singapore enterprises to access financing more readily across all growth stages, will be enhanced in two ways. Firstly, the maximum loan quantum for the scheme’s trade loan will be permanently raised to S$10 million, from S$5 million.
Secondly, the M&A loan under the EFS will also be enhanced to support targeted asset acquisitions from Apr 1 to Mar 31, 2030.
Finally, the Mergers & Acquisitions Scheme will be extended to Dec 31, 2030, to continue supporting companies growing through M&A. This scheme allows companies that make a qualifying acquisition of ordinary shares of another company to claim certain tax benefits, subject to conditions.
PM Wong noted that Singapore already has a “good pipeline of such promising enterprises”. He cited semiconductor testing solutions provider AEM Holdings as an example, as it has a global footprint and its products serve a “critical role in the chip production process”.
In addition, the Singapore Economic Development Board plans to launch a Global Founder Programme in 2025, PM Wong said.
The Economic Development Board, as Singapore’s investment promotion agency, has developed close links with multinational firms and established entrepreneurs that have started ventures, he added. The programme plans to encourage global founders to anchor and grow more new ventures in Singapore.
For more Budget stories, visit businesstimes.com.sg/singapore-budget-2025
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