Choose Value Over Origin: Josephine Teo Calls for Pragmatic AI Strategy

Singapore's approach to AI should be judged by the value it delivers rather than the country of origin of the technology, Minister for Digital Development and Information Josephine Teo told the Asia Economic Summit in Jakarta. Speaking at a moment when geopolitical tensions increasingly frame technology choices, Teo redefined AI sovereignty not as geographical control but as the autonomy to make smart choices that serve the public good.

"It should matter more how the overall value is achieved than whether this comes from country A or country B," Teo said, outlining four criteria for evaluating AI products: performance, affordability, security, and resilience. She argued that a healthy digital ecosystem requires a diverse mix of suppliers to prevent over-dependence on any single provider, while businesses must match security levels to dataset sensitivity and maintain the ability to switch vendors quickly during disruptions.

Teo also addressed Singapore's push for cross-border data flows, comparing the Asean Digital Economy Framework Agreement to a civil aviation air services agreement that sets top-line cooperation but requires meticulous technical harmonisation underneath. On AI regulation, she confirmed the government is developing AI "nutrition labels" — a voluntary framework co-created with industry that would declare an application's intended use and limitations without compromising proprietary information. "These attempts are baby steps, but ultimately, when ready, it will likely start as a voluntary framework," she said.

The minister highlighted the emergence of "small AI" — a term coined by World Bank President Ajay Banga — as a democratising force. "You don't need very heavy investments to benefit small communities and their very bespoke needs," Teo said, contrasting this with previous technology waves where frontier companies captured most of the value. She acknowledged the infrastructure bottlenecks Singapore faces — namely power for data centres and water for cooling — pointing to the Asean power grid as a potential long-term solution.

Why it matters for Singapore: Teo's speech provides the clearest articulation yet of Singapore's AI pragmatism amid intensifying US-China tech rivalry. By reframing AI sovereignty around outcomes rather than origins, Singapore positions itself as a neutral hub that can leverage the best technology regardless of source — a strategy that resonates across Asean as member states navigate their own AI paths. The emphasis on "small AI" also signals an awareness that Singapore's AI strategy must work for SMEs and underserved communities, not just the frontier players.