Speech by Senior Minister of State Low Yen Ling at Retail Reimagined – From Now to Next

Distinguished guests, 

Ladies and gentlemen, 

Introduction 

1.             Good morning, everyone. It is my pleasure to join you here today at Retail Reimagined – From Now to Next, organised by Enterprise Singapore (EnterpriseSG). 

2.             When we launched the current Retail Industry Digital Plan in 2023, our aim was to support retailers in their digitalisation journey. Today, we build on that foundation and take the next step forward together. 

The Retail Landscape Today – And What It Demands of Us 

3.             Singapore's retail sector continues to play an important role in our economy. It adds to the vibrancy of Singapore as a global city, and is part of the everyday lives of Singaporeans. At the same time, the operating environment has become more challenging. Costs have risen, manpower remains tight, and competition, particularly from global e-commerce players, has intensified. Consumer expectations are also constantly evolving. 

4.             The retailers who thrive 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. 

5.             Given the backdrop, this raises two important questions for our retail sector. How should retailers respond? How do we stay competitive today, while preparing and positioning ourselves for the opportunities of tomorrow? 

The Government's Strategy: Harnessing Technology and Nurturing Entrepreneurship 

6.             Singapore's Economic Strategy Review, recently released, highlights two recommendations that are particularly relevant to our retail sector. The first is to harness technology to strengthen our businesses. The second is to work with our TACs to nurture the entrepreneurial spirit that will power their growth. 

7.             These priorities point to where we must focus our efforts. Singapore's economic future depends on our ability to help businesses, especially our SMEs, adopt the tools of tomorrow. We must also create the right conditions for bold new ideas to take root and grow. 

8.             This is especially important as AI advances rapidly and redefines how businesses operate, compete and serve customers. For most retailers, the challenge is not the lack of solutions. It is knowing which solutions are right for their business, and where to start. 

Initiative One: Refreshed Retail Industry Digital Plan 

9.             To support retailers on this journey, I am pleased to announce the launch of a refreshed Retail Industry Digital Plan (IDP). Developed in partnership between EnterpriseSG and the Infocomm Media Development Authority (IMDA), it will guide retailers in their digital transformation. 

10.          The Retail IDP has been a cornerstone of our support for the sector since it was first launched in 2017, and refreshed in 2023. IMDA’s 2025 annual survey reflects this progress. It shows that over 75 per cent of SMEs have adopted entry-level digital solutions, and 45 per cent have adopted intermediate solutions. This reflects how the IDP has helped retailers in Singapore build strong digital foundations. 

11.          However, consumer expectations continue to shift. Technology is advancing rapidly. The landscape has evolved, and our support must evolve with it. The refreshed IDP addresses this through two key shifts in our approach. 

a.    First, the refreshed IDP places a greater focus on AI-powered technologies. Many SMEs may still lack awareness and clarity on how AI can be applied in retail. As AI becomes increasingly critical to staying competitive, the IDP will guide retailers on where and how these technologies can make a difference. This will help level the playing field and strengthen the resilience and competitiveness of Singapore's retail sector. 

b.    Second, we have re-organised the IDP to map solutions across retailers' end-to-end operations. This moves away from the previous approach of grouping solutions by stages of digital readiness.  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. 

12.          Let me share two examples of retailers who have already leveraged this technology and seeing the benefits of this kind of transformation. 

a.    Take the Far East Flora group of companies. At its flagship store at Clementi, Far East Flora has implemented self-checkout systems to streamline operations. This has reduced cashiers’ workload by 30 to 40 per cent. It has also shortened queue waiting times for customers, and reduced the need for dedicated cashier counter staff. Staff can now dedicate more time to serving customers and providing value-added services. 

                                               i.     At the same time, FarEastFlora.com adopted an AI-assisted marketing solution to sharpen its search engine marketing and campaign management. This led to an estimated 5 to 10 percent increase in returns without increasing marketing spends. The team also used Generative AI for content creation. This reduced production time by at least 50 per cent. At the corporate level, AI-powered digital training systems now help drive consistency in operations and service standards. 

b.    Another example is The Canary Diamond Co, an SME that faced challenges in training its sales associates. To address this, it developed an AI-powered digital training system in partnership with Nanyang Polytechnic, through the AI Catalyst Programme supported by EnterpriseSG. 

                                               i.     Through a simple voice command on a personal device, sales staff can instantly access real-time inventory levels, product information, and AI-generated prompts on how best to recommend each product. This gives them the knowledge and confidence to serve customers better. It also helps them deliver a more informed and seamless shopping experience. 

                                              ii.     In addition, the system supports staff development. After each sales pitch, staff receive a detailed report on areas for improvement, along with a confidence score. This supports real-time learning. Supervisors can also use team data to identify the habits and techniques of top performers. These insights can then be translated into practical learning points for training sessions. 

13.          Even as retailers benefit from AI in their enterprise transformation journey, they must also invest in job redesign and reskilling. This will ensure that workers are equipped with the right skills to operate new solutions and technologies. 

14.          Retailers can work with EnterpriseSG and Workforce Singapore[1], soon to be Skills & Workforce Development Agency (SWDA), to develop workforce transformation plans. These plans can help maximise impact for both their business and their people. 

15.          For those who would like to see the refreshed IDP in action, I encourage you to visit the Singapore Pavilion at the National Retail Federation (NRF)’s Retail Big Show APAC, next week. Curated by the Singapore Retailers Association, the Pavilion offers a hands-on opportunity to explore Retail IDP solutions. It will also showcase AI-enabled technologies through interactive stations and live demonstrations. 

Initiative Two: Retail Accelerator at L^IFE by Innovate 360 

16.          Beyond technology adoption, retailers need the right support infrastructure and ecosystem to bring their ideas to market effectively. 

17.          I am therefore pleased to announce the launch of the Retail Accelerator at L^IFE by Innovate360. This is a two-year integrated retail incubator programme, supported by EnterpriseSG and developed in partnership between the Singapore Retailers Association (SRA) and Innovate360. 

18.          Retail Accelerator will bring together 16 local brands, from entrepreneurs to designers, each with a compelling brand story and original products. These brands will be housed at Level 1 of *SCAPE. They will receive structured and comprehensive support to help them start right and to scale in a sustainable manner. 

a.    First, the programme will lower the operational barriers that often hold early-stage businesses back. Participating retailers will benefit from subsidised rental rates and resource-sharing within a community of like-minded brands. This gives them the runway to test, refine, and iterate their concepts without being overwhelmed by costs. 

b.    Second, the programme will build capabilities for long-term growth. Beyond the physical space, retailers will have access to structured workshops and mentorships covering areas such as marketing, visual merchandising, public relations, and techniques that have proven successful – livestreaming. Importantly, IDP solutions will be woven into these workshops so that digital adoption is built into the foundation of each retail business from the start. Brands will also have opportunities to meet potential partners and unlock internationalisation opportunities as they grow. As and when you are ready for internationalisation, EnterpriseSG is there to support you with Market Readiness Assistance (MRA) Grant. 

c.     Third, the programme will create a curated retail experience that benefits both customers and the broader retail landscape. This space at *SCAPE will feature distinctive experiential retail concepts and a diverse range of products.  It will offer customers an immersive experience, while adding fresh vibrancy to Singapore’s retail landscape. 

19.          From Koyoyu Studio's contemporary streetwear to Nestbloom's wellness products making their foray into physical retail, the programme will bring fresh ideas and new energy to Singapore's retail scene. 

20.          By the end of the programme, we hope participating brands will have grown sufficiently to stand on their own — whether by establishing a permanent presence that best reflects their identity, or by continuing their journey at *SCAPE. 

21.          EnterpriseSG will continue to curate more of such spaces to support promising local brands on their growth. Through these efforts, we will enhance the vibrancy of our retail sector and strengthen Singapore's position as a global lifestyle destination. 

Conclusion 

22.          In closing, I encourage all retailers to explore the refreshed Retail IDP through the SMEs Go Digital platform. Make full use of the resources available to you – not only when challenges arise, but as part of your ongoing growth and transformation journey. 

23.          The initiatives announced today reflect EnterpriseSG’s and the Government's long-term commitment to our retail sector. 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. 

24.          I am confident that together, we can build a retail sector that is resilient, competitive, and future-ready. 

25.          Thank you, and I wish all of you a fulfilling day ahead.

[1] Workforce Singapore (WSG) will be merged with SkillsFuture Singapore (SSG) to form Skills and Workforce Development Agency (SWDA).