How Singapore has become a leading tech hub in Asia

From AI-powered career tools to seamless digital services like Singpass, technology has become an integral part of daily life in Singapore. Backed by a strong national digital backbone and thriving startup scene with more than 20 active unicorns, including super-app Grab and car marketplace Carro, Singapore’s tech ecosystem now spans every sector of society and extends its influence overseas. So, it’s no surprise that Singapore has cemented its status as a top technology hub in Asia and globally. According to the Startup Genome 2025 report, the nation ranks ninth worldwide and second in Asia, with its strategic location and vibrant ecosystem valued at US$144 billion outpacing larger regional competitors.

Key Takeaways

• Singapore is a leading tech hub with a thriving ecosystem and more than 20 active unicorns.

• Growth and innovation are driven by a pro-business environment, strong government support, and nationwide digital infrastructure.

• Advances in AI, machine learning, and green tech are driving digital transformation.

• Singapore's Smart Nation 2.0 initiative harnesses technology to create a more advanced and people-centric nation.

• GovTech powers Singapore’s digital government to deliver seamless, inclusive, and trusted services under Smart Nation 2.0.

Why Singapore is a tech hub in Southeast Asia

Singapore’s location and future-ready infrastructure make it an ideal base for global companies, acting as a gateway to the ASEAN market of over 650 million people. This is further reinforced by its extensive trade networks, favourable tax policy, and a strong funding ecosystem, which collectively attract foreign investment.

For investors and entrepreneurs, this offers instant access to a connected region supported by one of the world’s most reliable digital environments.

Government support and policies for tech innovation

Programmes like Smart Nation and Startup SG, alongside agencies such as Enterprise Singapore and GovTech, provide comprehensive support for tech innovation and digital transformation. With a 17% corporate tax rate, Singapore has become a prime destination for venture capital.

In fact, in 2024, the country continued to lead Southeast Asia in venture funding, capturing nearly 60% of the region’s deal volume with a total value of over S$6.7 billion. With more than 500 VCs, including global players like Peak XV and B Capital, Singapore provides access to smart and patient capital for innovative startups.

Robust tech infrastructure and ecosystem

Singapore's world-class digital infrastructure is a cornerstone of its tech hub status. This is demonstrated by the country’s over 95% nationwide 5G coverage achieved in 2022. The highly reliable network, which includes broadband, mobile networks, and cutting-edge data centres, is essential for avoiding disruptions that could impact both individuals and businesses.

The Next Generation Nationwide Broadband Network (NBN) has also enabled Singapore to thrive during periods of high demand, such as the COVID-19 pandemic. And as a regional data centre hub with a capacity exceeding 1.4 gigawatts, Singapore continues to invest in its future. The country plans to fund up to S$100 million in the NBN to enable speeds that are 10 times faster by 2025.

For citizens, this translates to uninterrupted digital services even in times of crisis. For businesses, it ensures confidence that Singapore remains a reliable and stable place to innovate and scale.

Singapore’s major technological advancements

Having established a solid foundation, technology in Singapore is now driving major advancements that are not only reshaping our economy but also addressing national priorities.

Driving artificial intelligence and machine learning at scale

Artificial intelligence (AI) and machine learning are driving automation, predictive analytics, and highly personalised customer experiences across diverse sectors.

Singapore has also made AI a national priority, with a commitment to finance over S$1 billion over five years to support these efforts. This aims to boost AI adoption, build capabilities, and strengthen its use in scientific research. The launch of the National AI Strategy (NAIS) further sets out a vision to harness AI for the public good.

Furthermore, the landscape of AI adoption is evolving rapidly. A majority of companies report an urgency to adopt AI; however, only 13% of Singapore companies are fully prepared for AI deployment. This highlights a period of rapid transformation as businesses, and the Government strive to leverage these powerful tools to augment human capabilities and improve efficiency.

Innovation in sustainability and green tech

In line with the national climate goals outlined in the SG Green Plan 2030, innovation is being stimulated in energy efficiency, carbon capture, and low-carbon technologies. Collaborations between startups, enterprises, and research institutions power this drive towards a sustainable future.

A key example of this is the Green Data Centre Roadmap, which charts a sustainable growth pathway for Singapore's data centres. This initiative aims to accelerate data centre energy efficiency through best-in-class technologies and promote the use of green energy to expand capacity.

Singapore’s push into green tech shows that its leadership as a tech hub is not only about growth, but also about building a sustainable and climate-resilient digital economy.

What’s next for Singapore as a tech hub?

Building on its current progress, Singapore is now focused on the next phase of growth. Tech spending is forecasted at S$25.5 billion (US$19 billion) in 2025, representing a 5.6% increase driven by AI adoption, cloud services, and cybersecurity. Despite regional uncertainties, Singapore maintains strong fundamentals as a stable leader in tech innovation.

Singapore’s technological advancement is also guided by key pillars from the Smart Nation 2.0 vision – Trust, Growth, and Community:

• Building trust by ensuring safe and reliable digital systems

• Driving growth by empowering people and businesses with technology

• Strengthening community by using digital tools to foster cohesion and inclusion.

Up-and-coming trends, including the rapid progress of generative AI and emerging technologies like quantum computing, could usher in a new era. And to stay at the forefront, major plans include a commitment to invest over S$1 billion over five years to support AI efforts and build capabilities, as well as a new Digital Infrastructure Act in 2025 to improve the resilience of its digital foundations, showing a proactive approach to shaping the future of technology in Singapore.

How GovTech shapes Singapore’s tech ecosystem

At GovTech, we play a central role in strengthening Singapore’s reputation as a leading tech hub. By developing and deploying digital solutions across government, we provide the digital foundations that support both national infrastructure and citizen services.

Powering Smart Nation 2.0

The first iteration of the Smart Nation vision laid the groundwork with digitalisation of everyday services, e-payments, and nationwide connectivity. Smart Nation 2.0 sharpens this vision by focusing on services that are seamless, anticipatory, and inclusive. Guided by the pillars of Trust, Growth, and Community, GovTech is building a digital government that makes citizens' lives easier, supports businesses, and empowers agencies to deliver better services.

Building smart infrastructure and urban solutions

We support the development of smart city infrastructure in Singapore, leveraging IoT, data, and AI to enhance citizen, business, and government services. This includes smart building systems, environmental monitoring, and public safety initiatives, driving Singapore’s technological advancement as a leading tech hub.

One example is the Open Digital Platform (ODP) developed with JTC to power Punggol Digital District. By integrating digital twins and smart city solutions, ODP creates new ways to plan and manage Singapore’s first Digital District. Such innovations reflect Smart Nation 2.0’s goal of building resilient, sustainable, and people-centric urban environments.

Innovating for citizens and the nation

GovTech powers platforms such as the GovWallet suite, which has been used to manage large-scale events such as elections and sports competitions. For example, GovEntry powered the General Election 2025’s e-Registration, ensuring a seamless and swift experience for over 2.4 million voters while GovRewards facilitated swag redemption at SportSG’s Gameon SG60, part of the World Aquatics Championships 2025.

There are also innovative solutions like Career Kaki, an AI career coach by GovTech that guides job seekers with personalised career guidance towards future-ready jobs. These solutions show how GovTech’s innovations impact every aspect of life, from national events to the everyday lives of citizens.

Leading Asia's digital future 

Through the Smart Nation initiative, GovTech acts as a key enabler to engineer and implement pioneering technologies that power Singapore’s digital future. This commitment extends beyond our borders, positioning Singapore as a leader in technology across the region.

We invite ICT companies and vendors to collaborate with us in co-creating the next generation of digital solutions for Singapore. Through strong public-private partnerships, we can work together to deliver on the enhanced Smart Nation vision and continue to lead Asia's digital transformation.

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