Budget Wishlist: Tech leaders demand AI governance fund to fix 40% SME security gap

Fragmented systems currently drain 4.5 hours of productivity per employee every single week.

As Singapore prepares for Budget 2026, industry leaders are calling on policymakers to provide support that helps scale artificial intelligence (AI) responsibly as 40% of businesses are held back by security threats.

Megan Hughes, managing director and vice president of JAPAC at HubSpot, specifically said that small and medium enterprises need budget support to build unified data systems and training leaders to manage hybrid human-AI teams.

"Nearly four in ten businesses say these concerns are holding them back from realising AI’s full value, according to HubSpot's 2025 Singapore State of Business Growth Report," Hughes said. 

“Competitive advantage in Singapore's next decade will be defined not by who has the most sophisticated tools, but by who can transform their organisation fastest,” the expert added.

Lee Bo Han, partner in R&D and incentives advisory and tax at KPMG Singapore, said that embedding trust, transparency, and resilience into AI systems is critical. “This will drive long-term scalability and interoperability, better positioning firms for success.”

To accelerate adoption, James Wilson, partner in technology consulting and advisory and head of consumer & retail at KPMG, recommended co-funded, sector-specific shared data pools. He said that anonymised data pools would allow businesses of all sizes to access high-quality proprietary datasets without prohibitive costs.

Wilson said that pairing these initiatives with guided AI adoption would help enterprises identify where AI can augment operations and drive broad, fair adoption of digital solutions.

Cross-sector collaboration was another priority. Paul Kent, partner in corporate transformation at KPMG, suggested enhancing public-private partnerships to reduce barriers for AI experimentation and deployment.

“The enhanced framework would create spillover effects from existing AI initiatives, as governments, agencies, academia and industry stakeholders collaborate to strategically integrate AI solutions into business strategies,” he said.

Lee also said that workforce readiness and board-level governance are critical for responsible AI deployment. He noted that hands-on training, frameworks for data quality and accuracy, and leadership development are key.

“Instead of operating a software, learning to collaborate with generative AI is key,” he said. “It is important for board leadership to also evolve in parallel, to effectively steer and lead a workforce with these new capabilities."

Meanwhile, Gerry Chng, partner and head of cyber and advisory at KPGM, cited governance gaps, weak data foundations, and leadership challenges as obstacles for many enterprises.

He recommended a guided data governance framework toolkit to provide firms with practical guidance on AI deployment, risk management, and data integrity. “The toolkit could mirror the SG Cyber Safe Programme, incorporating trust marks to recognise firms that meet predefined governance and quality standards.”

Wendy Lim, partner of cyber and advisory at KPMG, added that building public trust and exploring a regional Trusted AI mark could assure ethical standards, supporting cross-border operations and innovation.

Lee further called for a budget fund to equip boards and executives with governance, ethical oversight, and workforce change management skills, complemented by a dedicated academy for structured upskilling.

“Any incentives that can include tax benefits, grants, or fast-track work-pass renewals should be tied to measurable outcomes,” noted Lim. “These could be the numbers of executives trained, boards certified, and governance frameworks implemented.”

Beyond governance and workforce readiness, industry leaders emphasised the need for sector-specific support to make AI adoption practical and impactful.

Haresh Khoobchandani, vice president of APAC & Japan at Autodesk, noted that whilst government programmes have made AI accessible, “merely having AI tools isn’t the same as knowing how to use them for complex, industry-specific tasks.”

He called on Budget 2026 to support industries such as construction, manufacturing, and entertainment with AI that forecasts safety risks, automates routine design work, and drives sustainable manufacturing.

Jornt Moerland, senior vice president APAC, Siemens Data & AI, cautioned that rapid AI adoption without proper frameworks can create technical debt.

He urged businesses to unify data and integrate technologies into workflows and called for Budget initiatives that support responsible AI management, linking governance to Singapore’s Smart Nation objectives.

Moreover, Niko Walraven, area VP of APAC at Neat, highlighted productivity challenges, noting that fragmented systems reduce output by 4.5 hours per employee per week despite widespread AI use.

He advocated for evolving the Productivity Solutions Grant to support integrated, “zero-touch” infrastructure and enhance collaboration in hybrid work environments.

Koren Wines, managing director of Xero Asia, said Singapore’s small and medium-sized enterprises (SMEs) are digitally advanced but can become “intelligent SMEs” by applying AI intentionally.

She highlighted the role of “invisible AI” embedded in everyday tools, the continued importance of human judgment, and the need for practical training and enterprise-grade security.

“When routine tasks like reconciliations, reporting and forecasting are automated, time is freed up for higher-value work—navigating complex client conversations, making confident decisions and solving problems creatively,” said Wines. “From a Budget perspective, this reinforces the need to invest in education that builds real AI fluency, not just adoption.”