Singapore Commits S$37 Billion to Research and Innovation Over 5 Years

Singapore has announced a significant investment of S$37 billion (approximately US$28.5 billion) in research, innovation, and enterprise for the next five years. The decision was made public by the National Research Foundation (NRF) on December 5, 2023. This funding represents about 1 per cent of Singapore’s economic output, aimed at addressing critical national challenges and enhancing the country’s competitiveness on the global stage.

At a press conference detailing the new investment strategy, Senior Minister Lee Hsien Loong emphasized Singapore’s commitment to maintaining this level of investment, which has been consistent over the past several years. He stated that 8 per cent of the total investment, or S$3 billion, will focus on “flagships” and “grand challenges” in key sectors, including the semiconductor industry and longevity research.

Strategic Focus on Key Sectors

The concept of flagships and grand challenges was initially introduced by Heng Swee Keat, former Deputy Prime Minister and current NRF chairman, during a parliamentary session in February. These initiatives aim to coordinate research efforts within crucial economic sectors and tackle significant national priorities. “Each national programme will develop a coordinated portfolio of research projects to address major challenges in one single important sector or area,” Lee explained.

While the funding for research, innovation, and enterprise is substantial, Heng noted that it still constitutes “a small fraction of what the whole world invests.” He underscored the importance of strategic collaborations with leading institutions and industries in Singapore and globally to maximize impact.

The NRF has also announced the establishment of the Singapore-Horizon Europe Complementary Fund. This initiative will facilitate collaborations with Horizon Europe, the European Union’s flagship funding programme for research and innovation. Eligible Singaporean researchers participating in Horizon Europe projects will receive financial support in priority areas.

The ongoing budget from 2021 to 2025 has focused on four domains: manufacturing, trade and connectivity; human health and potential; urban solutions and sustainability; and the smart nation and digital economy. The forthcoming budget for 2026 to 2030 will continue to address these areas while also enhancing Singapore’s talent pool and leveraging artificial intelligence (AI) as a transformative force.

Investment in Talent and AI Research

To attract promising young researchers and entrepreneurs, the NRF plans to introduce new funding schemes. One notable initiative is a new postdoctoral award, which will provide high-potential postdoctoral talents with a research grant of S$250,000 and up to four years of salary support. This programme aims to encourage independent research while allowing institutions to evaluate candidates for faculty roles.

Additionally, the Activate Global-Singapore Fellowship will support Singapore-based scientists and engineers engaged in early-stage deep tech innovations, with applications set to open in 2026. Through these initiatives, Singapore aims to develop local AI talent and implement AI technologies to accelerate research across the identified domains.

In terms of the semiconductor industry, the NRF aims to enhance Singapore’s role as a global research and development hub. The nation currently accounts for 10 per cent of the world’s chip production and 20 per cent of global semiconductor manufacturing equipment production. This focus aims to anchor high-value manufacturing activities locally and create pathways for deep-tech startups.

Lee acknowledged concerns regarding potential risks related to the AI sector, stating that while speculation exists about an AI bubble, the importance of electronics to Singapore’s economy remains clear. “You need electronics for all kinds of things, and we are a significant player in semiconductors,” he remarked.

The grand challenges initiative will also specifically address the pressing issue of longevity, with projections indicating that one in four Singaporeans will be aged 65 and above by 2030. The NRF highlights that managing ageing-related challenges is essential, as a significant portion of the elderly population is expected to live with conditions such as dementia and frailty.

Progress and Future Directions

The NRF’s investments over the past five years have fostered a more research-intensive economy and a burgeoning deep-tech ecosystem. Business expenditure on research and development rose to S$8.1 billion in 2022, up from S$4.2 billion in 2012, with a 25 per cent increase in the number of industry researchers during that time.

Singapore’s deep-tech startups have attracted over US$1 billion in venture capital funding annually, accounting for 20 per cent of total investments in the region. The NRF reported that overall venture capital investments in Singapore rose to US$6.1 billion in 2023, reflecting the increasing commercial potential of local startups.

While there are discussions regarding potentially increasing the proportion of GDP allocated to research and innovation, Heng indicated that inviting more private sector investments is also a priority. Strengthening the relationship between researchers and industry will allow for a more symbiotic approach to addressing the needs of both parties.

Lee reaffirmed that the commitment to maintain the investment at 1 per cent of GDP is crucial for sustained research efforts. “Investing in research and development should be done on a sustained, long-term basis,” he emphasized. This stable approach ensures that funding is consistently available for valuable scientific projects that are relevant to Singapore’s needs.

In summary, Singapore’s strategic investment in research, innovation, and enterprise over the next five years is set to enhance its global competitiveness and address crucial challenges facing the nation.