Terry KS Nanyang Polytechnic has launched the AI Nexus Lab to help Singapore SMEs adopt artificial intelligence through real-world projects built on AWS. The initiative connects students, educators and businesses to develop scalable AI solutions while strengthening industry-ready digital talent.
SINGAPORE, 8 JANUARY 2026 – Nanyang Polytechnic (NYP) has launched the AI Nexus Lab, a new initiative aimed at making digitalisation and artificial intelligence adoption more accessible for Singapore’s small and medium-sized enterprises. The lab bridges education and industry by enabling students to apply classroom learning to real-world business challenges using Amazon Web Services (AWS).
Through the partnership, more than 1,000 students annually from NYP’s School of Information Technology will gain hands-on experience with AWS AI and machine learning solutions embedded into their curriculum. Over the next five years, NYP aims to support 500 SMEs through pathways such as generative AI training workshops and applied development projects.
In a pilot collaboration with the Singapore Chinese Chamber of Commerce & Industry, 64 SME use cases have already been identified for prototype development. These projects are incubated within the AI Nexus Lab, where learners work directly with companies to analyse operational challenges and design practical AI solutions.
Dr Phua Chee Teck, Deputy Principal (Sustainability & Technology) at NYP, said the lab addresses a common barrier to AI adoption among SMEs by providing a clear starting point. He noted that the initiative serves as a one-stop platform where businesses can bring real needs and work with learners to develop scalable, confidence-building solutions.
Through AI and design thinking workshops, NYP collaborates with SMEs to define specific use cases before learners build proof-of-concepts using AWS services. Student-developed minimum viable products that businesses choose to productionise receive further support through the AWS AI Springboard initiative, which offers cloud credits and training, as well as the AWS Partner Network, which provides technical expertise and scaling capabilities.
The initiative has already produced tangible outcomes. A year two Diploma in Information Technology learner, Teo Yu Xiang, developed an optical character recognition and data analytics system to digitise printed product catalogues for motorcycle spare parts retailer Auto Machinery Singapore. The solution enables staff to quickly search parts digitally, replacing time-consuming manual searches. The project has since evolved into a start-up, AM Digiparts Pte Ltd, co-founded by Yu Xiang and Auto Machinery Singapore, and is now scaling through pilot programmes with motorcycle repair shops.
Danny Hoe, Director of Auto Machinery Singapore, said the solution has delivered productivity gains exceeding 16 per cent and reduced approximately 180 man-hours of manual work each month. He added that the success demonstrates how traditional businesses can harness AI effectively with the right talent and tools.
SMEs participating in the AI Nexus Lab can also access subsidies of up to 90 per cent through SkillsFuture Singapore’s Mentorship Support Grant, helping accelerate projects from pilot to full-scale deployment.
Elsie Tan, Country Manager for Worldwide Public Sector, Singapore at AWS, said early exposure to AI through hands-on experimentation is essential for preparing students for a rapidly evolving workforce. She noted that building real solutions for real businesses equips learners not just for their first job, but for long-term adaptability in a technology-driven economy.
The partnership was formalised through a Memorandum of Understanding signed on 30 September 2025 at AWS Public Sector Day, reflecting a shared commitment by NYP and AWS to strengthen Singapore’s AI ecosystem and develop future-ready digital talent. Beyond SCCCI, NYP is also working with other SME and trade associations to expand the pipeline of business problem statements and extend the benefits of AI adoption across industries.