SMEs want Budget support for AI workforce training & risk support. - Panel by ISCA

Key Takeaways (What was discussed & by whom)

• AI training is now the biggest gap — not AI tools

  • Mr Aslam Sardar (Institute for Human Resource Professionals) said companies are not seeing full productivity because employees are not trained to use AI properly.

  • The focus is shifting from AI adoption to AI implementation in daily workflows.

    
    

• Government support may expand for AI skills

  • Selena Ling (OCBC Chief Economist) said SkillsFuture AI courses exist but are too generic.

  • She suggested a special AI SkillsFuture credit to fund more customised training.

    
    

• AI could reduce entry-level jobs

  • Selena Ling & Mr Ang Yuit (ASME) warned AI may replace internships and junior roles, creating a future talent shortage.

  • This raises urgency for reskilling and workforce planning.

    
    

• SMEs need more structural support, not just grants

  • Mr Ang Yuit (ASME) highlighted pressures from rent, wages, manpower and financing.

  • He said many issues are structural, not temporary, and enterprise transformation support is lacking.

    
    

• Overseas expansion support needs improvement

  • Mr Musa Fazal (Singapore Business Federation) said 1 in 3 companies are entering new markets, usually ASEAN.

  • Current grants (e.g., Market Readiness Assistance capped at $100k) may be too small for real expansion costs.

Proposed Actionables for SMEs (What businesses should do now)

1. Start AI training early and across the company

   • Train staff on prompting AI, analysing outputs and using AI in workflows — not just buying tools.

     
     

2. Prepare for AI-driven job changes

   • Build internal training pipelines to replace lost junior/entry-level learning pathways.

     
     

3. Plan for internationalisation

   • With more support likely coming, SMEs should prepare ASEAN expansion strategies now.

     
     

4. Collaborate with other SMEs

   • Industry leaders are asking for pooled grants and shared resources, so partnerships will become more important.

     
     

5. Strengthen cashflow and contracts

   • Expect future policy focus on financing, rental flexibility and loan support — SMEs should review financing and lease terms early.