Government introduces refreshed digital roadmap and new incubator programme to help retailers adopt AI and grow sustainably

Senior Minister of State for Trade and Industry Ms Low Yen Ling announced new initiatives to strengthen Singapore’s retail sector during her speech at “Retail Reimagined – From Now to Next” on 26 May 2026.

Speaking at the event organised by Enterprise Singapore (EnterpriseSG), Ms Low said Singapore’s retail industry continues to play an important role in the economy despite rising costs, manpower shortages, and growing competition from global e-commerce companies.

She highlighted that retailers must embrace technology, especially Artificial Intelligence (AI), while continuing to provide good customer service. Ms Low said businesses that understand their customers and improve efficiency through digital tools will be better positioned for future growth.

One of the key announcements was the launch of a refreshed Retail Industry Digital Plan (IDP), developed by EnterpriseSG and the Infocomm Media Development Authority (IMDA). The updated plan will guide retailers in using AI-powered technologies and digital solutions across their entire business operations.

The refreshed IDP focuses on helping retailers identify operational challenges and adopt suitable digital solutions more easily. It also aims to support SMEs that may still be unsure about how to apply AI in their businesses.

Ms Low shared examples of companies already benefiting from technology adoption. Far East Flora introduced self-checkout systems at its Clementi flagship store, reducing cashier workload by up to 40 per cent and improving customer waiting times. The company also used AI-assisted marketing tools, which increased returns by up to 10 per cent without raising marketing costs.

Another SME, The Canary Diamond Co, developed an AI-powered digital training system with support from EnterpriseSG’s AI Catalyst Programme and Nanyang Polytechnic. The system helps sales staff access real-time product information and receive feedback on their sales performance.

Ms Low also stressed the importance of workforce transformation and reskilling. Retailers are encouraged to work with EnterpriseSG and Workforce Singapore to redesign jobs and train workers to use new technologies effectively.

In addition to digitalisation efforts, Ms Low announced the launch of the Retail Accelerator at L^IFE by Innovate360. Supported by EnterpriseSG and developed with the Singapore Retailers Association and Innovate360, the two-year incubator programme will support 16 local retail brands at *SCAPE.

The programme will provide subsidised rental space, mentorship, workshops, and opportunities for international expansion. Participating brands will also learn how to integrate digital tools and AI into their businesses from the beginning.

Ms Low said the initiative aims to help local entrepreneurs test new retail concepts, strengthen Singapore’s retail ecosystem, and enhance the country’s reputation as a global lifestyle destination.

She encouraged retailers to make full use of the refreshed Retail IDP and government support schemes to continue growing and transforming their businesses.

Source: MTI

Singapore’s core inflation eased in April 2026 due to lower services and retail goods inflation, while overall consumer inflation remained unchanged at 1.8%, according to MAS and MTI.

Singapore’s core inflation slowed in April 2026 as price increases for services and retail goods eased, according to the latest “Consumer Price Developments in April 2026” report released by the Monetary Authority of Singapore and the Ministry of Trade and Industry.

MAS Core Inflation fell to 1.4% year-on-year in April, down from 1.7% in March. On a month-on-month basis, core prices increased slightly by 0.2%. Meanwhile, CPI-All Items inflation remained unchanged at 1.8% year-on-year in April, although it declined by 0.3% compared to March on a monthly basis.

The report stated that higher private transport and accommodation inflation was offset by lower inflation in services and retail goods. Private transport inflation rose from 6.6% in March to 8.1% in April due to larger increases in petrol and car prices.

Accommodation inflation edged up from 0.3% to 0.4% because of higher housing rents. Food inflation remained stable at 1.6% year-on-year, while retail and other goods inflation eased from 1.8% to 1.5%. Electricity and gas prices continued to decline, although at a slower pace, moving from -4.3% in March to -3.0% in April.

Services inflation also fell from 2.1% in March to 1.5% in April, mainly due to smaller increases in health insurance costs and lower telecommunication services prices.

Looking ahead, MAS and MTI said imported cost pressures are expected to increase in the coming months as higher global energy and input costs linked to developments in the Middle East affect production and transportation costs worldwide.

The authorities projected that both MAS Core Inflation and CPI-All Items Inflation will average between 1.5% and 2.5% in 2026. However, they noted that risks to the inflation outlook remain tilted to the upside due to potential disruptions in global energy supplies and supply chains.

The report was jointly released by the Monetary Authority of Singapore and the Ministry of Trade and Industry on 25 May 2026.

Source: MTI

Singapore’s trade performance continued to expand in the first quarter of 2026, driven by strong AI-related demand in electronics exports despite global uncertainties linked to the Middle East conflict and trade tensions.

Enterprise Singapore announced on 25 May 2026 that Singapore recorded continued growth in both merchandise and services trade during the first quarter of 2026.

Singapore’s Non-Oil Domestic Exports (NODX) grew by 9.6 per cent in 1Q 2026, following a 12.7 per cent increase in the previous quarter. The growth was largely supported by strong electronics demand linked to artificial intelligence technologies. Electronic NODX surged by 57.8 per cent, led by integrated circuits, disk media products, and personal computers.

Among non-electronic exports, however, sectors such as food preparations, petrochemicals, and measuring instruments recorded declines during the quarter.

Singapore’s top export markets also recorded growth, with Taiwan, Hong Kong, and South Korea contributing the most to the increase in NODX.

Enterprise Singapore upgraded the 2026 NODX forecast to between “+3.0% and +5.0%”, citing stronger-than-expected first-quarter performance and resilient AI-related demand globally.

The agency noted that the World Trade Organization raised its global merchandise trade growth forecast for 2026 to 1.9 per cent, while the International Monetary Fund also increased its global trade growth projection to 2.8 per cent.

At the same time, Enterprise Singapore warned that downside risks remain due to the ongoing Middle East conflict and the possibility of renewed global trade tensions.

Non-oil re-exports (NORX) expanded sharply by 45.4 per cent in 1Q 2026, extending the previous quarter’s 19.7 per cent growth. Electronics re-exports climbed by 68.0 per cent, driven by strong demand for PCs, integrated circuits, and telecommunications equipment.

Total merchandise trade increased by 25.6 per cent in the first quarter. Total exports rose by 27.9 per cent, while imports expanded by 23.1 per cent. Growth was mainly supported by non-oil exports, even as oil exports declined.

Singapore’s services trade also continued to grow, increasing by 4.4 per cent in 1Q 2026. Services exports grew by 3.9 per cent, supported by stronger performance in business services, financial services, and travel services.

Enterprise Singapore said the strong momentum in AI-related trade and technology demand is expected to continue supporting Singapore’s trade outlook throughout the rest of 2026.

Source: Enterprise Singapore

Singapore’s external trade recorded another month of strong growth in April 2026, led by robust demand for AI-related electronics products such as integrated circuits, disk media products, and PCs.

Singapore’s Non-oil Domestic Exports (NODX) expanded by 24.5% year-on-year in April 2026, extending the 15.3% growth recorded in March, according to a media release issued by Enterprise Singapore on 18 May 2026.

Electronic exports remained the main driver of growth, rising 66.7% in April due to strong AI-related demand. Growth was led by integrated circuits (ICs), disk media products, and PCs. Non-electronic exports also increased by 10.9%, supported by pharmaceuticals, specialised machinery, and measuring instruments.

Among Singapore’s major export markets, shipments to the United States, China, and South Korea recorded strong increases. Exports to the US surged 59.6%, while exports to China and South Korea rose 37.8% and 71.2% respectively.

Singapore’s Non-oil Re-exports (NORX) also posted solid growth, increasing 29.6% in April 2026, although this was slower than the 60.8% expansion seen in March. Electronics re-exports climbed 41.6%, supported by ICs, PCs, and telecommunications equipment.

Overall merchandise trade grew by 33.1% in April 2026 after a 38.3% rise in March. Total exports increased 31.8%, while imports rose 34.7%, showing continued strength in Singapore’s trade sector.

The report noted that AI-related demand continued to support Singapore’s electronics sector, especially in semiconductor-related products. Pharmaceuticals also contributed strongly to non-electronics export growth due to a low base from the previous year.

Source: Enterprise Singapore