Singapore refreshes retail digital plan to boost AI adoption among SMEs

Singapore’s retail sector is getting a sharper push into AI adoption, as Enterprise Singapore and Infocomm Media Development Authority (IMDA) roll out a refreshed Retail Industry Digital Plan (IDP) aimed at guiding more than 2,000 SME retailers beyond basic digital tools and into more advanced, AI-enabled solutions.

Unveiled at the 'Retail reimagined – From now to next' event, the updated plan was unveiled by senior minister of state Low Yen Ling, who said the sector needs to move past foundational adoption and focus on technology that directly improves competitiveness amid rising costs, manpower pressures, and intensifying eCommerce competition.

First launched in 2017 and refreshed in 2023, the IDP has helped drive strong baseline adoption across the sector, with more than 75% of SME retailers now using entry-level digital solutions and 45% adopting intermediate tools, according to IMDA’s 2025 retail survey. However, adoption of more advanced technologies remains limited, even as AI tools become more widely available and retail use cases mature.

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The refreshed framework shifts away from organising solutions by stages of digital readiness, and instead maps them across end-to-end business touchpoints, including front-of-house, back-of-house, and corporate operations. The aim is to make it easier for retailers to identify operational pain points and match them with relevant digital solutions.

A stronger emphasis has also been placed on AI-enabled tools. For customer-facing operations, the IDP highlights AI concierge systems and generative AI chatbots designed to enhance in-store and online engagement through personalised recommendations and support. On the operations side, demand forecasting tools are being positioned to help retailers manage inventory more efficiently using predictive analytics.

At the corporate level, generative AI solutions for marketing, sales content creation, and digital training are also being promoted as productivity levers. The approach has already shown results among some early adopters. Florist Far East Flora, for instance, reportedly cut content production time by around 50% after adopting GenAI tools for marketing and sales content generation.

The plan also introduces a "Cybersecurity and data protection roadmap" to help SMEs strengthen digital resilience. This includes practical toolkits and solutions such as anti-malware systems, firewalls, and backup protection.

Beyond technology adoption, the government is also encouraging retailers to rethink job roles and invest in reskilling, with businesses urged to work with Workforce Singapore to develop integrated enterprise and workforce transformation plans.

Industry input was gathered in developing the refreshed IDP, with organisations including the Singapore Retailers Association, Singapore Fashion Council, and Singapore Furniture Industries Council involved in consultations.

Additionally, a "Retail Accelerator at L^IFE by Innovate360" was also launched to support early-stage brands. Backed by EnterpriseSG, the two-year programme will house 16 local brands at *SCAPE, offering subsidised retail space, mentorship, and structured support in areas such as marketing, PR, merchandising, and livestreaming.

Digital tools from the IDP will also be embedded into the accelerator programme, alongside opportunities for brands to explore partnerships and internationalisation support as they scale.

In her speech, Low said the refreshed plan reflects a broader commitment to ensuring retailers are not left navigating transformation alone, but are supported at every stage of their journey.

"Whether you are taking your first steps in digitalisation, testing a new retail concept, or scaling your operations to the next level, you do not have to do it alone. I am confident that together, we can build a retail sector that is resilient, competitive, and future-ready," she added. 

The refreshed IDP comes as Singapore continues pushing for broader AI adoption across industries, despite many businesses still being in the early stages of implementation.

According to a recent report by Singapore’s Ministry of Manpower, 71.5% of firms have yet to adopt AI, while only 28.5% have started integrating the technology into their operations. Of those, just 3.8% said AI had been fully embedded into core business processes, with most companies still in planning or pilot phases. The study, conducted between January and March 2026, surveyed 2,560 private sector establishments employing about 486,600 workers.

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