EnterpriseSG and IMDA unveil updated retail industry digital plan to help retailers adopt AI

[SINGAPORE] More than 2,000 small and medium-sized enterprises (SMEs) retailers are expected to benefit from the revamped Retail Industry Digital Plan (IDP).

This comes as governments step up efforts to help businesses adopt artificial intelligence and boost productivity amid mounting operational pressures.

The updated roadmap aims to help retailers leverage AI and new retail technologies to tackle rising costs, workforce constraints and increased competition.

Senior Minister for Trade and Industry Lo Yen Ling said on Tuesday (May 26) that Singapore’s economic future depends on helping businesses, especially SMEs, adopt emerging technologies and create the conditions for innovation to succeed.

He added that the aim was to “build a vibrant, competitive and future-ready retail sector”. “This is especially important as AI advances rapidly and redefines the way companies operate, compete and serve their customers.”

Mr Low was speaking at EnterpriseSG’s Rethinking Retail: From Now to Next event.

The updated IDP was jointly developed by EnterpriseSG and Infocomm Media Development Authority (IMDA).

IMDA said nine out of 10 retail SMEs will report productivity gains from digital adoption in 2025, citing reduced operating costs, increased market share and increased revenue as key benefits.

Johnson Poe, assistant chief executive of IMDA’s Enterprise Transformation and Innovation Group, said the latest IDP will help small and medium-sized businesses identify the right digital solutions to address their “unique business challenges.”

Increased focus on AI adoption

This roadmap introduces two important changes in approach.

First, we will increase our focus on AI-powered technology and expand our solution suite to add more such tools across retailers’ operations.

Recognizing that it remains unclear how many small and medium-sized businesses can effectively apply AI, Lo said IDP will “guide retailers on where and how these technologies can make a difference”, helping to level the playing field and strengthen the retail sector’s resilience and competitiveness.

Second, the updated roadmap reorganizes solutions around end-to-end operations, rather than grouping retailers into digital-enabled stages.

This “makes it easier and more intuitive for retailers to identify specific pain points across their operations and find the right solutions to address them,” Low said.

Combining AI implementation and employee upskilling

In addition to technology adoption, retailers are also being encouraged to redesign jobs and invest in upskilling their employees to enable them to work effectively alongside AI tools.

Successful retailers will be those who “know their customers well, reach them through the right channels, and use technology to improve efficiency while keeping the human touch,” said Loh.

She highlighted local businesses such as Far East Flora that are already seeing the benefits of digital adoption.

The company implemented a self-checkout system to streamline operations, reducing workload by 30-40% and increasing operational efficiency.

We have also introduced an AI-powered digital training system to improve consistency in our operations and service standards.

Ryan Chio, Far East Flora’s deputy group managing director, said the revamped IDP came at a “very good time” for retailers navigating rapid technological change.

He added that with the increased focus on AI, this will give companies “a clearer roadmap and the confidence to take the next steps in technology implementation.”

Jeannie Lim, assistant managing director for services and growth enterprises at EnterpriseSG, said the revamped IDP aims to help retailers “remain competitive in an increasingly dynamic and technology-driven landscape”.

The same event launched L^ife’s two-year incubator program called Retail Accelerator (located at *Scape and operated by Innovate 360).

Supported by EnterpriseSG and developed in collaboration with the Retailers Association of Singapore and Innovate 360, the service brings together 16 local retailers to test and refine concepts for sustainable growth.

Mr Low pointed out that this initiative reflects Singapore’s continued commitment to supporting the retail sector at every stage of digitalization and business growth.