Analyses & Studies
Singapore: F&B Sector Leveraging AI for Sustainable Growth
At the Reimagining F&B in a Growing AI Environment Forum, Minister of State for Digital Development and Information, Mdm Rahayu Mahzam, addressed business leaders, partners, and community stakeholders, highlighting the transformative role of artificial intelligence in Singapore’s food and beverage (F&B) sector.
In her keynote speech, Mdm Rahayu underscored the importance of embracing AI in a rapidly evolving digital landscape. She noted that Singapore’s SMEs are increasingly recognising the value of AI in enhancing productivity, improving service quality, and driving cost efficiency.
“This is an exciting time for all of us,” she said, adding that AI is not only revolutionising how businesses operate but also creating new opportunities for growth across industries.
She praised local businesses that have adopted AI in both small and significant ways. From automating customer service through chatbots to generating content and managing operations, SMEs are already tapping into accessible AI tools.
“These are small steps that make a big difference,” she remarked.
Mdm Rahayu referred to Singapore’s Digital Enterprise Blueprint (DEB), launched in May 2024, which sets the direction for enterprise digitalisation in the coming years. The DEB focuses on empowering businesses through AI adoption, cloud-based scaling, and improved cyber resilience. Supporting workforce upskilling is also a central priority.
In line with this, the Food Services Industry Digital Plan (IDP) under the SMEs Go Digital programme has been refreshed to meet the sector’s evolving needs. The new plan introduces AI-enabled tools such as automated checkout systems, unmanned kitchens, and end-to-end operations to support F&B SMEs aiming to boost efficiency and reduce costs.
One success story cited the transition from labour-intensive cooking methods to a capsule-based system with preset controls. This not only improved food consistency but also lifted productivity by over 50%. The business further adopted generative AI (GenAI) for content creation, enhancing its digital presence.
Other examples included a local fruit retailer that implemented a CRM system with a GenAI-powered chatbot to handle customer queries around the clock, leading to improved sales and operational efficiency, as well as a beverage business that used GenAI to simplify marketing for new product launches and boost customer engagement.
Another highlighted case was a growing F&B business that moved from Excel-based HR processing to a cloud-based HR management system. The change improved administrative efficiency and employee experience.
She emphasised that SMEs are well-placed to adopt AI, building on foundations from earlier waves of digitalisation. Programmes such as the Chief Technology Officer-as-a-Service (CTOaaS) and the newly announced Enterprise Compute Initiative (ECI), which allocates $150 million to support AI transformation, further enhance support for SMEs with ambitious digital goals.
To support businesses starting their AI journey, Mdm Rahayu encouraged the use of the IMDA’s Generative AI Playbook for Enterprises, which offers guidance on tools, grants, and training. The Gen AI Navigator helps SMEs match appropriate solutions with available SkillsFuture Singapore-funded training. All pre-approved tools are cloud-native, reducing the need for major infrastructure investment.
Training remains a key pillar in Singapore’s digitalisation push. Mdm Rahayu acknowledged the challenges of upskilling while managing daily operations but pointed to strong support from institutions like SkillsFuture Singapore, SSA Academy, and the Singapore Malay Chamber of Commerce and Industry. SkillsFuture for Digital Workplace 2.0 and the Digital Leaders Programme equip workers and leaders with essential digital and AI-related skills.
Mdm Rahayu urged SMEs to build a confident base of AI users and foster a mindset that is quick to recognise opportunities and wise in taking action.
“Let us be bold in reimagining how AI can serve the F&B industry,” she said. “Together, we will build a vibrant business ecosystem that fosters innovation, enhances productivity and unlocks new opportunities for all.”
SOURCE: OPEN GOV
