Singapore Fires a $173 Million Shot in the Fintech Rivalry With Hong Kong
Singapore’s financial regulator will invest S$220 million ($173 million) over three years to support the growth of the city-state’s fintech industry to spur technology adoption and talent development, given a significant plunge in private fintech investment.
The funding will be part of the new Financial Sector Technology and Innovation Scheme (FSTI 4.0), which is the fourth phase of a scheme established in 2015, said the Monetary Authority of Singapore (MAS) on Monday. The latest commitment is 46.7% higher than the S$150 million allocated under FSTI 3.0, which covered 2023 through 2026.
KPMG’s Pulse of Fintech H1 2026 report found that Singapore fintech companies attracted more than $499 million across 53 deals in the first half of 2026, down from about $1.45 billion across 97 deals in the same period in 2025.
MAS Expands Fintech Funding
FSTI 4.0 will be implemented through six tracks covering institutional innovation, artificial intelligence adoption, infrastructure and platforms, talent development and other areas, according to MAS.
Deputy Prime Minister and MAS Chairman Gan Kim Yong said the program is intended to help Singapore capture opportunities arising from emerging technologies.
“With AI and other frontier technologies emerging, we want to capture new growth opportunities,” he said.
Gan said FSTI 4.0 would focus on four thrusts, including strengthening Singapore’s innovation capabilities and helping fintech companies move promising solutions from experimentation toward commercial deployment.
MAS said the latest scheme builds on a fintech sector that now has more than 1,800 firms employing close to 10,000 professionals across technology, data, artificial intelligence, compliance, cybersecurity and business roles. Fintech investments in Singapore reached S$2.9 billion in 2025, according to the regulator.
Since the scheme was introduced in 2015, MAS has committed S$845 million across its four phases, according to figures provided by the regulator.
Funding Targets AI, Infrastructure and Talent
FSTI 4.0 is designed around four broad objectives: anchoring and scaling innovation in Singapore; accelerating the development and adoption of financial technologies, particularly frontier technologies; developing technology infrastructure; and supporting talent development and attraction.
Financial institutions and Singapore-based fintech companies will be able to receive support for qualifying projects under the scheme. MAS said the funding is intended to help firms at different stages, from developing new solutions to expanding regionally and globally.
The talent component will include support for at least 1,000 fintech internship opportunities over the next three years. A new FinTech Internship Portal, managed by the Singapore FinTech Association, will connect fintech companies with students from Singapore’s institutes of higher learning.
Gan emphasized the importance of developing a workforce capable of supporting the industry’s next phase.
“You can imagine that the talent that we need, the capability we need to build, is going to be very critical for the growth of this sector,” he said.
MAS also plans to continue its FinTech Awards track through the Singapore FinTech Festival and Global FinTech Hackcelerator. The regulator said it will introduce a Scale-up Grant for eligible hackcelerator finalists to further develop and validate their solutions.
Private Fintech Investment Slows
The public funding commitment comes after a weak first half for Singapore’s fintech investment market.
KPMG’s data showed that investment fell to more than $499 million across 53 deals in H1 2026, compared with roughly $1.45 billion across 97 deals in H1 2025. The first-half total was the lowest recorded for Singapore since at least 2019 in the KPMG dataset.
Investment was particularly weak in the first quarter, when Singapore recorded about $88 million across 26 deals. Activity increased to approximately $411 million across 27 deals in the second quarter.
However, much of that second-quarter recovery was concentrated in a single $320 million funding round for a cross-border payments platform in June. The transaction accounted for close to two-thirds of Singapore’s fintech investment during the first half.
The broader trend was consistent with a global shift toward larger transactions involving more established fintech companies. KPMG reported that global fintech investment rose to $103.1 billion in H1 2026 from $72.2 billion in H2 2025, while the number of global deals declined to 2,100 from 2,500.
Singapore-Hong Kong Fintech Competition
Singapore’s latest funding push also comes as Hong Kong continues to develop its digital finance ecosystem.
Hong Kong has expanded its regulatory framework for digital assets, with the Stablecoins Ordinance taking effect on Aug. 1, 2025. The Hong Kong Monetary Authority began accepting stablecoin issuer license applications in August 2025 and announced the first two licensed stablecoin issuers in April 2026.
The regulatory move gives Hong Kong another area of competition with Singapore as both financial centers seek to attract financial technology companies, capital and talent.
Hong Kong’s position is closely connected to mainland China’s financial markets, while Singapore serves as a regional hub for Southeast Asia and international financial services.
MAS Expands Support For Fintech Innovation
Singapore’s FSTI 4.0 commitment increases public support for fintech development at a time when private investors are concentrating capital in fewer, larger transactions.
MAS said the scheme will support fintech companies from early-stage development through regional and global expansion.
The Singapore FinTech Festival is scheduled for Nov. 18-20, providing a major industry platform later this year for companies, investors and policymakers as Singapore advances its latest fintech strategy.
