~ 120 SMEs across retail, modern services and logistics to accelerate transformation through new programme ~
~ SME Partners network expands to 2,200 SMEs benefitting more than 93,000 workers, including PMEs ~
The National Trades Union Congress (NTUC) SME Partners and the Association of Small and Medium Enterprises (ASME) have launched a programme for SMEs to accelerate their business and workforce transformation. NTUC Deputy Secretary-General Desmond Tan announced the new SME Transformation Accelerator programme at the SME Partners Members' Night 2026. About 350 SME employers, union leaders and partners attended the event.
Amid rising business costs and a tight labour market, artificial intelligence (AI) can be a multiplier that enables SMEs to improve productivity, redesign jobs and unlock new growth opportunities. However, many SMEs lack the scale, time or expertise to do so independently. To address this, ASME will identify SMEs facing common challenges, work with them to find solutions collectively, and tap on the NTUC Company Training Committee (CTC) Grant to move from capability-building to practical, AI-enabled transformation.
Through the NTUC CTC Grant, companies can receive up to 70 per cent co-funding of qualifying costs for transformation projects that enhance productivity, commit to delivering better worker outcomes through higher wages and/or skills allowances. SMEs can also gain access to a bridging loan arrangement provided by a partner bank through ASME to help manage cash flow as they invest in business transformation.
A new programme for SMEs to transform together
Retail, Professional Services and Logistics will be the first three sectors to participate in the SME Transformation Accelerator programme, with about 120 SMEs expected to take part and at least 480 workers set to benefit from wage increases and/or skills allowances. For a start, 40 retail SMEs are expected to embark on the programme by November 2026, with at least 160 workers benefitting.
SMEs face common challenges within their respective sectors, including time-consuming manual processes, difficulties tracking customer enquiries and sales leads, and inefficiencies in fulfilment and delivery coordination. Through the programme, SMEs can adopt AI-enabled solutions in areas such as customer relationship management, operations and logistics to streamline processes and support business growth. For example, an AI solution could cost about $50,000 per company, of which an SME would need to co-pay about $15,000 with the support of the NTUC CTC Grant.
ASME’s approach pairs each transformation project with job redesign and reskilling, so that as manual processes are streamlined, workers move into higher-value work. This is how productivity gains translate into better employability and higher wages.
NTUC Deputy Secretary-General Desmond Tan said, “For SMEs, adopting AI starts with understanding their business challenges, then investing in technology to implement solutions that can sustainably transform their operations and job roles. With the right approach, AI can be a multiplier for SMEs to raise their productivity and grow their businesses. Through the SME Transformation Accelerator programme, NTUC is committed to supporting SMEs in their AI adoption and business transformation journey, while equipping workers with the skills and confidence to thrive in an AI-enabled workplace.”
ASME President Ang Yuit said, “Micro and small enterprises employ around 45 per cent of Singapore’s workforce, yet they are often overlooked when it comes to support. Each is too small to take on transformation alone, and too small to be reached one at a time. Group-based upgradings change that, giving them access to the funding, expertise and implementation support that larger firms can secure on their own. Working with NTUC means workers share in the gains.”
Strengthening SMEs through trusted workforce partnerships
Through sustained engagement, NTUC SME Partners has built strong relationships with SMEs, helping them better understand how NTUC and its unions can support business and workforce transformation. The number of SME Partner companies has tripled over the past five years, from about 700 in 2021 to more than 2,200 in 2026.
1For SMEs, unionisation provides a structured platform for employers and workers to engage on workplace issues and navigate business and workforce changes together. By engaging workers early and addressing their concerns with the union’s support, companies can better manage workforce transitions and strengthen trust with workers. Unions can also complement SMEs’ human resources capabilities by helping them to establish progressive workplace practices and effective grievance management.
Recognising these benefits, more SMEs have taken the next step towards unionisation through NTUC SME Partners, with the number of unionised SMEs increasing from 84 to 182 over the same period. This growth reflects the trust built through sustained engagements with SMEs, and the value SMEs see in the Labour Movement’s network, resources and support, including the NTUC CTC Grant.
Over the same period, the number of workers who have benefitted from NTUC SME Partners’ programmes has doubled from 46,000 to more than 93,000. To better champion the interests of this growing network of SME workers, NTUC SME Partners plans to grow its People Champions Programme from 285 in 2026 to 500 by 2027.
Jointly nominated by their companies and NTUC, People Champions support workforce engagement, well-being and communication at their workplaces. They receive fully subsidised training in industrial relations, leadership and membership knowledge from NTUC's Ong Teng Cheong Labour Leadership Institute.
