BUDGET 2025: R&D investments critical, but SME access remains uncertain

It also aims to foster the development of new capabilities, supporting industry transformation whilst creating better jobs.

The Singapore government has announced an additional $3b top-up to the National Productivity Fund, aimed at enhancing productivity and supporting workforce training.

Mr. Chai Wai Fook, Partner at Ernst & Young Solutions LLP, emphasised that this initiative will attract high-quality investments from multinational enterprises.

He believes it will also foster the development of new capabilities, supporting industry transformation whilst creating better jobs and driving sustainable economic growth in Singapore.

As part of efforts to strengthen Singapore’s R&D competitiveness, the government will invest an additional $1b into R&D infrastructure.

Dr. Chua Yang Liang, Head of Research and Consultancy for Southeast Asia at JLL, noted that this includes the development of a national semiconductor R&D fabrication facility for prototyping and testing innovations.

The investment will also support the refurbishment of biosciences and medtech research infrastructure in the one-north area, enhancing Singapore’s ability to attract global R&D investments.

Dr. Chua Yang Liang further explained that the rejuvenation of ageing facilities in one-north will enhance Singapore’s attractiveness as an R&D destination. The upgraded spaces are expected to meet the modern demands of life sciences companies, supporting the integration of Industry 4.0 initiatives, such as automation, into their R&D processes.

This move is seen as critical for Singapore to remain competitive in the global innovation landscape.

Yogesh Sangle, Global Head of Instarem, highlighted that the $3b top-up represents a strong step toward enhancing Singapore’s competitiveness.

He believes that supporting high-quality investments will help drive technology adoption and innovation.

Sangle also stressed that SMEs should have access to resources that enable them to scale, digitise, and remain competitive. He added that grants for AI adoption and automation could further accelerate SME productivity, complementing the government’s investments.

The $3b top-up to the National Productivity Fund and the $1b R&D investments are expected to drive industry transformation and sustain long-term growth.

Analysts agree that these measures will position Singapore as a leading hub for innovation, with a particular focus on semiconductors, biosciences, and medtech industries.

The combination of workforce development, technology adoption, and modernised infrastructure is seen as essential for maintaining Singapore’s competitive edge in the global economy.