The new funding brings total MAS commitment under FSTI 3.0 to S$250 million, supporting co-funding for quantum-safe cybersecurity and AI-driven risk models.

Overview of FSTI 3.0 and the New S$100 Million Allocation

The Monetary Authority of Singapore committed an additional S$100 million (US$77 million) under the Financial Sector Technology and Innovation Grant Scheme (FSTI 3.0) on 18 July 2024, bringing total MAS commitment under the programme to S$250 million. The allocation pairs S$150 million initially committed at the scheme's launch in 2022 with the new funding stream dedicated to quantum and artificial intelligence capabilities.

FSTI 3.0 now comprises six core tracks—Centre of Excellence (COE), Industry-Wide Projects, Innovation Acceleration, AI & Data Analytics (AIDA), RegTech, and ESG FinTech—plus a new Quantum track introduced alongside the July 2024 announcement. The scheme, which runs until March 2026, aims to accelerate innovation by supporting projects that involve cutting-edge technologies or that demonstrate a regional nexus. Eligible applicants include financial institutions, corporate venture capital entities, global technology companies, and industry consortia, provided projects align with MAS's developmental strategy and targets under the Industry Transformation Map (ITM) 2025.

SGD Millions (S$ M)Source: Orionmano Industries

Quantum Track: Catalysing Capabilities and Security

The newly established Quantum track under FSTI 3.0 directly addresses the financial sector's growing exposure to quantum computing risks and opportunities. MAS has been collaborating with the National Quantum Office following the announcement of Singapore's National Quantum Strategy by Deputy Prime Minister Heng Swee Keat in May 2024, and the Quantum track is designed to operationalise that strategic alignment for financial services.

The Quantum track comprises three distinct grant types with differentiated co-funding structures. The Technology Centres grant provides funding support of up to 50% on manpower and other qualifying expenses—including hardware and software infrastructure, subscriptions, and licences—for a period of 24 months. This grant targets the establishment of quantum computing and security innovation functions in Singapore, enabling financial institutions and global technology companies to explore and unlock opportunities from quantum technologies.

The Innovation grant, also at up to 50% co-funding, comprises two sub-tracks. The first sub-track aims to catalyse meaningful institutional use cases that bring significant business impact. The second sub-track supports strategic endeavours to solve relevant industry-wide problem statements, advancing the exploration and implementation of quantum solutions across multiple institutions.

The Security grant provides funding support of up to 30% to enable experimentation and development of quantum technology-related pilots. This grant specifically targets cybersecurity readiness, helping financial institutions safeguard critical data and prepare Singapore's financial infrastructure and services for the quantum era. Industry estimates suggest the cybersecurity implications of quantum computing could require significant investment across the sector by 2030, and this grant front-loads the development of quantum-safe protections.

AI & Data Analytics: Enhancing Innovation Centres and Risk Models

Alongside the new Quantum track, MAS has enhanced the existing AI & Data Analytics (AIDA) grant to deepen AI capabilities in Singapore's financial sector. The enhanced AIDA grant is designed to help financial institutions establish AI innovation centres in Singapore covering a comprehensive range of functions: AI model building and training, deployment of AI models for high-impact use cases, governance and risk management, and testing and monitoring.

The enhanced AIDA track provides co-funding support of up to 50% for manpower expenses for qualifying roles—with differentiated rates for Singapore Citizens (up to 50%) and non-Singapore Citizens including Permanent Residents (up to 25%)—for a period of 24 months. Qualifying expenses extend beyond manpower to include professional services, hardware and software infrastructure and licences, equipment, and intellectual property rights. The co-funding structure reflects MAS's continued emphasis on developing Singaporean talent within the financial technology ecosystem.

This enhancement targets alignment with MAS's developmental strategy and ITM 2025 targets, signalling that AI-driven risk models and governance frameworks are now considered core infrastructure for the financial sector rather than experimental use cases. Financial institutions using the enhanced AIDA grant to develop AI innovation centres are expected to focus on high-impact deployment scenarios, including credit risk modelling, fraud detection, and regulatory compliance automation.

Program Timeline and Total Funding Commitment

FSTI 3.0 was announced in 2022 with an initial S$150 million commitment across six tracks. The additional S$100 million allocated in July 2024 brought cumulative MAS commitment under the scheme to S$250 million. The scheme remains valid until March 2026, giving financial institutions and technology companies approximately two years from the July 2024 announcement to submit applications and deploy funds.

The programme timeline is a critical constraint: with a March 2026 deadline, applicants must submit proposals at least three months before project commencement to facilitate project discussions and processing. MAS directs interested parties to engage via its FinTech Office at fintech_office@mas.gov.sg for project discussions before formal submission.

The cumulative S$250 million positions Singapore as one of the more ambitious government-backed financial technology co-funding programmes globally, particularly in the quantum computing domain. However, the programme's impact will ultimately depend on industry co-investment. With co-funding rates reaching 50% for most tracks, the effective total investment catalysed by FSTI 3.0 could exceed S$500 million when matched by applicant contributions. Talent development remains a parallel priority: MAS is working with Institutes of Higher Learning and the Institute of Banking and Finance on initiatives to support the development of quantum capabilities in the financial services sector.

The strategic bet embedded in FSTI 3.0 is that Singapore's financial hub status can translate into a testbed for next-generation financial technology, with quantum-safe cybersecurity and AI-driven risk management as the flagship use cases. Adoption timelines will depend on whether industry co-investment and talent pipelines can keep pace with the programme's ambitions.