EnterpriseSG, IMDA launch refreshed Retail Industry Digital Plan to help retailers adopt AI

[SINGAPORE] More than 2,000 small and medium-sized enterprise (SME) retailers are expected to benefit from a refreshed Retail Industry Digital Plan (IDP).

This is as the government steps up efforts to help businesses adopt artificial intelligence and strengthen productivity amid rising operational pressures.

The updated road map is intended to help retailers tackle rising costs, manpower constraints and intensifying competition by leveraging AI and new retail technologies.

Senior Minister of State for Trade and Industry Low Yen Ling said on Tuesday (May 26) that Singapore’s economic future depends on helping businesses – especially SMEs – adopt emerging technologies and create conditions for innovation to thrive.

She added that the aim is to “build a retail sector that is vibrant, competitive and future-ready”. “This is especially important as AI advances rapidly and redefines how businesses operate, compete and serve customers.”

Low was speaking at Enterprise Singapore’s (EnterpriseSG) Retail Reimagined: From Now to Next event.

The refreshed IDP was developed jointly by EnterpriseSG and the Infocomm Media Development Authority (IMDA).

IMDA said that nine in 10 retail SMEs reported productivity gains from digital adoption in 2025, citing reduced operating costs, increased market share and higher revenue as key benefits.

Johnson Poh, assistant chief executive of the enterprise transformation and innovation group at IMDA, said the updated IDP would help SMEs identify the right digital solutions to address their “unique business challenges”.

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Enhanced focus on AI adoption

The road map introduces two key shifts in approach.

First, it places greater focus on AI-powered technologies, expanding the suite of solutions to include more of such tools across retailers’ operations.

Recognising that many SMEs still lack clarity on how AI can be applied effectively, the IDP will “guide retailers on where and how these technologies can make a difference”, helping to level the playing field and strengthen the retail sector’s resilience and competitiveness, said Low.

Second, the refreshed road map reorganises solutions around retailers’ end-to-end operations instead of grouping them by stages of digital readiness. 

This makes it “easier and more intuitive for retailers to identify specific pain points across their operations and find the right solutions to address them”, said Low.

Combining AI adoption with workforce upskilling

Beyond technology adoption, retailers are also encouraged to redesign jobs and invest in workforce upskilling to ensure employees can work effectively alongside AI tools.

Low said retailers that succeed will be those that “know their customers well, reach them through the right channels, and use technology to improve efficiency while keeping the human touch”.

She highlighted local businesses such as Far East Flora that are already seeing results from digital adoption.

The company has implemented self-checkout systems to streamline operations, reducing workload by 30 to 40 per cent and improving operational efficiency.

It has also adopted AI-powered digital training systems to improve consistency in operations and service standards.

Ryan Chioh, deputy group managing director of Far East Flora, said the refreshed IDP comes at “a very good time” for retailers navigating rapid technological change. 

He added that this would give businesses “a clearer road map and more confidence to take the next step in adopting technology”, given the stronger focus on AI.

EnterpriseSG assistant managing director for services and growth enterprises Jeannie Lim said the refreshed IDP is intended to help retailers “stay competitive in an increasingly dynamic and technology-driven landscape”. 

At the same event, a two-year incubator programme called Retail Accelerator at L^ife – located at *Scape and operated by Innovate 360 – was launched. 

Supported by EnterpriseSG and developed with the Singapore Retailers Association and Innovate 360, it brings together 16 local retailers to test and refine their concepts for sustainable growth.

Low noted that the initiatives reflect Singapore’s continued commitment to supporting the retail sector at every stage of digitalisation and business growth.