On 27 October 2026, Enterprise Singapore (EnterpriseSG) rolled out three new AI initiatives. There’s the Champions of AI programme, a series of agentic AI workshops called Driving Entrepreneurship with AI, and Catalytic AI Solutions, which is sector-specific. Deputy Prime Minister Gan Kim Yong announced them at the Singapore Week of Innovation and Technology (SWITCH) 2026.
The three are pitched at different kinds of businesses. Champions of AI starts with 24 larger companies. The agentic AI workshops are for small business owners who are just getting going with AI. Catalytic AI Solutions is for SMEs in advanced manufacturing, trade and logistics, and the manufacturing side already has more than S$45 million over three years behind it.
So, which of these is for you?
If you are a local SME, the Driving Entrepreneurship with AI workshop series, as well as the Catalytic AI Solutions, may be more relevant and suitable for you. In addition, you can also potentially benefit from the 400% tax deduction on up to S$50,000 of qualifying AI spending, for both YA2027 and YA2028.
The three initiatives
Here’s how they compare.
| Initiative | Who it is for | What it offers | Status |
|---|---|---|---|
| Champions of AI | Singapore-based companies committed to making AI a core growth driver | Tailored long-term AI roadmaps, access to AI experts and solution providers, change management, workforce redesign and upskilling | Starts with 24 larger companies; more to join over time |
| Driving Entrepreneurship with AI workshops | Micro-entrepreneurs and small business owners starting their AI journey | Hands-on guidance to identify use cases and build working prototypes | Pilot completed; more workshops coming up; scaling up in 2027 |
| Catalytic AI Solutions | SMEs in advanced manufacturing, trade and logistics | Ready-to-deploy, sector-specific AI solutions delivered with trade associations and vendors | Manufacturing launched with over S$45 million over three years; fuller measures by early 2027 |
Champions of AI
This is the national flagship, and it’s a big ask. Companies that join commit to AI transformation across the whole business, building their own AI skills in-house and upskilling their staff. They’re also expected to push their suppliers and partners to adopt AI.
That last bit is the one SMEs should notice. If one of your customers is in the programme, expect questions about how digitally ready you are.
Driving Entrepreneurship with AI workshops
If you want a way in, this is probably it. More than 280 small businesses took part in the pilot, using agentic AI tools for marketing, sales and customer service. Agentic AI just means a system that works towards a goal with little supervision, such as following up leads or drafting replies to customer enquiries.
One feedback which EnterpriseSG picked up from the participants: lots of businesses are experimenting with AI but lack the in-house skills and time to integrate it properly. Therefore, the agency will also be looking into various support for companies to help them in their final stages of AI deployment to ensure sustainability of the projects.
Catalytic AI Solutions
This one is for SMEs in three sectors: advanced manufacturing, trade and logistics. The idea is to give them AI tools that are ready to use, so they don’t have to build their own.
SMEs usually hold back for three reasons. It costs too much, there aren’t many tools made for their sector, and they can’t be sure it will pay off. To deal with these issues, EnterpriseSG will be working with trade associations and qualified vendors to offer ready-made tools.
Manufacturing is the only sector that has launched so far. More than S$45 million over three years will go towards helping SMEs pay for these tools, for things like inspection, quality control, and product and component design.
For trade, the first plan is helping rice importers with buying and stock decisions. For logistics, the focus is on planning routes and assigning jobs across a fleet. Neither has launched yet.
A fuller set of support measures is due by early 2027.
Which one fits your business?
This is just a guide for reference. Actual eligibility will depends on each scheme’s own criteria.
| Your situation | Best starting point |
|---|---|
| Small business owner exploring AI for marketing, sales or customer service | Driving Entrepreneurship with AI workshops |
| SME in advanced manufacturing | Catalytic AI Solutions (manufacturing track) |
| SME in trade or logistics | Catalytic AI Solutions; prepare now, details due by early 2027 |
| Any SME paying for AI tools or AI services | Enterprise Innovation Scheme 400% deduction (YA2027 and YA2028) |
| Established company aiming for enterprise-wide AI transformation | Champions of AI programme |
The 400% tax deduction for AI spending
This one’s already in place, so it’s the easiest to plan around. Budget 2026 made AI adoption a qualifying activity under the Enterprise Innovation Scheme (EIS), which the Inland Revenue Authority of Singapore (IRAS) administers. For YA2027 and YA2028, you can claim a 400% deduction on up to S$50,000 of qualifying AI expenditure each year.
What counts?
IRAS sets the definitions, so read its EIS guidance before you spend anything. Not every IT purchase will count as AI spending. A few things to bear in mind:
- A deduction lowers your taxable income, so what you actually gain depends on your tax position. Your tax adviser can work that out.
- Keep AI invoices apart from general IT costs, and make sure each one shows what it was for.
- Check which Year of Assessment your spending lands in. That depends on your financial year-end.
Where AI is likely to help first
EnterpriseSG’s initiatives cover marketing, sales and customer service, quality control in manufacturing, procurement and inventory in trade, and routing in logistics. If that sounds like your business, start by writing down where your team loses the most time or money. Once you know the problem, it’s a lot easier to tell which support fits.
What to do now
- Pick one or two problems to fix. Slow lead follow-up, repetitive customer replies, stock planning, routing. “Use more AI” isn’t a goal.
- Match them to the right route using the table above.
- Start recording AI spending separately in your books, so you can pull it out easily later.
- Keep an eye out for the next Driving Entrepreneurship with AI workshop through EnterpriseSG.
- Before you sign with a vendor, check whether any scheme you’re considering covers costs incurred before approval.
- Find out how and when each scheme pays out, and plan your cash flow around it.
Mistakes to avoid
- Buying the tool first and finding a use for it later. An AI subscription nobody uses is just an expense, and a hard one to justify in a claim.
- Assuming all IT spending qualifies for the 400% deduction. Only spending that fits IRAS’s definition does.
- Waiting for every detail to be announced. Trade and logistics support is still being finalised, but you can plan your use cases and sort out your record-keeping now.
- Leaving your team out. EnterpriseSG’s message at the launch was that job redesign and training should go hand in hand with process changes. If staff aren’t brought along, adoption will be a struggle.
Talk to 361DC about your AI plans
Not sure where AI could make a difference in your business? Get in touch with 361DC to talk through where your AI potential may lie, and which grants or incentives may be relevant, before you commit to any spending.
Frequently Asked Questions
There are three, announced on 27 October 2026: the Champions of AI programme, the Driving Entrepreneurship with AI workshops, and Catalytic AI Solutions.
No. Support comes through the workshops, the sector-specific Catalytic AI Solutions and the Enterprise Innovation Scheme tax deduction.
Unlikely for now. The first cohort is 24 companies, and the ones named so far are mostly large and well-established organisations.
The Driving Entrepreneurship with AI workshops. They are aimed at micro-entrepreneurs and small business owners, with more sessions in November 2026 and a bigger rollout in 2027.
More than S$45 million over three years for the manufacturing track. That is the total pool, not the amount per company.
By early 2027, according to EnterpriseSG.
400% on up to S$50,000 of qualifying AI expenditure per Year of Assessment, for YA2027 and YA2028.
No. It is a deduction under the Enterprise Innovation Scheme, administered by IRAS. It lowers your taxable income, so the benefit depends on your tax position.
EnterpriseSG for the AI initiatives, and IRAS for the Enterprise Innovation Scheme. Your tax adviser can confirm how the deduction applies to you.
