Singapore Commits S$37 Billion to Boost Research and Innovation

Singapore has announced a significant investment of S$37 billion (approximately US$28.5 billion) over the next five years to enhance its research, innovation, and enterprise landscape. The National Research Foundation (NRF) revealed this initiative on December 5, outlining that this funding will constitute about 1 per cent of the nation’s economic output. The commitment signals Singapore’s ongoing strategy to position itself as a global leader in these crucial sectors.

Of the total investment, S$3 billion, or 8 per cent, will focus specifically on key areas termed “flagships” and “grand challenges.” These initiatives include targeted efforts in the semiconductor industry and longevity research. During a press conference, Senior Minister Lee Hsien Loong emphasized the importance of maintaining this level of investment, stating it would help Singapore tackle significant challenges in critical sectors.

Lee remarked, “Each national programme will develop a coordinated portfolio of research projects to address major challenges in one single important sector or area.” This strategic approach aims to generate greater value and impact from research initiatives.

The concept of flagships and grand challenges was initially introduced by former Deputy Prime Minister Heng Swee Keat in February. Although Heng has since stepped down from his political role, he highlighted the necessity for Singapore to collaborate with leading institutions globally, as the amount invested domestically is relatively modest compared to worldwide expenditures.

Singapore’s commitment to investing around 1 per cent of its GDP in research and innovation has been consistent. From 2021 to 2025, the nation allocated S$28 billion for these areas, exceeding initial projections by S$3 billion due to a mid-term funding boost. The NRF aims to enhance international partnerships, particularly through the establishment of the Singapore-Horizon Europe Complementary Fund. This fund will financially support local researchers involved in Horizon Europe projects, which is the European Union’s primary research and innovation funding program.

Focus Areas and Future Initiatives

The investment strategy will continue to cover four main domains: manufacturing, trade and connectivity, human health, and urban solutions. The forthcoming funding period from 2026 to 2030 will also prioritize expanding Singapore’s talent pool and leveraging artificial intelligence (AI) as a transformative force in research. New funding schemes will be introduced to attract promising young researchers and entrepreneurs.

To support high-potential postdoctoral researchers, the NRF plans to offer a new postdoctoral award featuring a S$250,000 research grant and up to four years of salary support. This initiative aims to allow young talents to pursue independent research while evaluating their fit for faculty positions.

Moreover, programs will be developed to help trained researchers gain entrepreneurial experience in deep tech start-ups abroad. The Activate Global-Singapore Fellowship, designed for Singapore-based scientists and engineers with early-stage deep tech innovations, is set to open applications in 2026.

In its focus on the semiconductor industry, the NRF aspires to position Singapore as a crucial research and development hub, anchoring high-value manufacturing locally, and fostering pathways for deep tech start-ups. Currently, Singapore accounts for 10 per cent of global chip production and 20 per cent of semiconductor manufacturing equipment production.

When discussing the potential risks associated with the speculative AI market, Lee acknowledged the uncertainty surrounding it. He stated, “The thing with bubbles is that you only know afterwards that there was one.” Despite the ongoing debate, he affirmed the importance of the electronics sector to Singapore’s economy and the global landscape.

Addressing Ageing and Future Challenges

Among the grand challenges identified, one will focus on maximizing healthy and successful longevity. With projections indicating that one in four Singaporeans will be aged 65 or older by 2030, addressing ageing is critical. The NRF notes that approximately half of adults aged 85 and above currently live with dementia, and by 2030, more than 150,000 Singaporeans are expected to be affected.

Through this initiative, Singapore aims to bridge significant knowledge gaps in scientific research that inform interventions, particularly in maintaining brain health and physical function as individuals age. The establishment of a dedicated ageing cohort and data infrastructure will support new basic and translational research, and a testbed for solutions aimed at healthy ageing will be developed to validate research insights.

The NRF’s previous investments in research and innovation have already yielded notable progress. Business expenditure on research and development rose to S$8.1 billion in 2022, a significant increase from S$4.2 billion in 2012. The number of industry researchers grew by 25 per cent during the same period. Additionally, Singapore’s deep tech start-ups attracted over US$1 billion in venture capital funding annually, accounting for 20 per cent of total venture capital investments in the country.

Looking ahead, while Heng indicated that Singapore does not plan to increase its 1 per cent GDP commitment at this time, he emphasized the importance of inviting more private sector investment in research. The government has engaged in discussions with various companies to better align research initiatives with industry needs.

As Lee concluded, research investment must be sustainable and long-term. He stated, “It’s not something where you want feast and famine,” underscoring the need for consistent funding to ensure that researchers can confidently pursue their projects without the fear of sudden funding cuts. Singapore’s strategic commitment to research, innovation, and enterprise positions it for continued growth and global leadership in these vital fields.