Updated strategy helps over 1,500 food manufacturers boost productivity and scale sustainably
Singapore is doubling down on digital transformation in its food manufacturing sector, with a renewed national push to help companies harness artificial intelligence amid rising costs and manpower constraints.
Accelerating Digital Adoption with AI
More than 1,500 food manufacturers in Singapore are set to benefit from the refreshed Food Manufacturing Industry Digital Plan (IDP), unveiled on Feb 9. Led by Enterprise Singapore and the Infocomm Media Development Authority, the update responds to rapid advances in artificial intelligence and the growing need for productivity-driven solutions within the sector.
Addressing Cost and Manpower Pressures
Senior Minister of State for Trade and Industry Low Yen Ling said the refreshed IDP comes at a critical time, as food manufacturers face rising operational costs, labor shortages, and efficiency challenges. Since the original IDP was launched in 2021, adoption of sector-specific digital solutions has surged, with more than 90 percent of companies implementing at least one solution in 2025, up from 75 percent in 2023.
New Factory Signals Industry Transformation
The announcement was made at Senoko Crescent, where soya sauce and condiments producer Kwong Cheong Thye has opened a new factory that is twice the size of its previous facility. Equipped with advanced robotics and automated guided vehicles, the plant is expected to boost production capacity sixfold, with 30 percent of operations powered by renewable energy such as solar.
Three Business Outcomes Drive the Plan
The refreshed IDP organizes digital solutions around three outcomes. These include automating routine administrative processes, improving production insights through data and analytics, and supporting companies seeking to scale overseas. A newly introduced logistics control tower allows manufacturers to monitor global supply chains in real time from Singapore, reducing risks tied to international expansion.
AI Solutions Deliver Measurable Gains
Practical AI applications are already delivering results. An AI-enabled automated ordering system that captures WhatsApp orders has helped poultry distributor Toh Thye San Farm improve order accuracy by 20 percent, saving up to eight hours of labor per error avoided. AI chatbots and manufacturing analytics tools are also enabling round-the-clock customer service, predictive maintenance, and productivity gains.
Sustainability and Yield Improvements
Kwong Cheong Thye implemented digital monitoring for fermentation variables such as temperature and humidity. This solution streamlined scheduling and multi-batch planning, with expected improvements in soya sauce yield from 70 percent to 90 percent, highlighting how digitalization supports both efficiency and sustainability.
Talent and Advisory Support
Beyond technology, Enterprise Singapore is strengthening ecosystem support through personalized digital advisory services at SME Centre@SMF. A talent development program launching in the second half of 2026 will also connect computing and IT students with food manufacturers, helping companies integrate digital solutions while building a future-ready workforce.
The refreshed Food Manufacturing Industry Digital Plan signals Singapore’s commitment to building a resilient, tech-enabled food sector. By combining AI-driven solutions, sustainability efforts, and talent development, the initiative strengthens Singapore’s manufacturing competitiveness while offering a model for regional economies, including Indonesia, seeking scalable and future-ready industrial growth.
Sources: Straits Times (2026) , Business Times (2026)
Keywords: Singapore Food Industry, Food Manufacturing Digital Plan, Artificial Intelligence Adoption, Enterprise Singapore, IMDA
