Speaking in parliament to unveil this year’s national budget, Wong said AI is “advancing at a remarkable speed”, with immense potential to raise productivity, unlock new discoveries and transform lives.

While AI has caused concerns about misinformation and jobs being displaced, Wong said the city-state must confront the technology and make it serve the country’s needs.

He urged Singapore to move beyond “individual pilots and isolated experiments” and scale up the use of AI at the national level and across industries.

“Fear cannot be Singapore’s response. If we allow uncertainty to paralyse us, we will fall behind in a world that is moving rapidly ahead,” he said.

“We must act with clarity and resolve. AI is a powerful tool, but it is still a tool. It must serve our national interest and our people,” said Wong, who is also the finance minister.

Wong said he will chair the AI council, which will “provide strategic direction and drive Singapore’s AI agenda”.

Tiny Singapore has been increasingly using technology to overcome structural constraints such as its limited natural resources, a rapidly ageing population and a tight labour market.

The government said last month it will invest more than S$1 billion (US$793 million) in public research on artificial intelligence through 2030 to bolster its capabilities and enhance global competitiveness.

“We define how AI is developed and used in Singapore. We will set clear rules to ensure it is applied responsibly and safely,” Wong said in his speech.