Additional commitment doubles FSTI 3.0 to S$250M, targeting quantum and AI capabilities in Singapore's financial sector.

FSTI 3.0 Expanded with S$100M Quantum and AI Track

The Monetary Authority of Singapore (MAS) committed an additional S$100 million (approximately US$75–77 million) on 18 July 2024 under the Financial Sector Technology and Innovation Grant Scheme (FSTI 3.0), bringing the total programme size to S$250 million. The funds are drawn from MAS’s Financial Sector Development Fund, as confirmed by Deputy Managing Director Leong Sing Chiong at a media briefing on 18 July. The initial FSTI 3.0 commitment, launched in 2023, stood at S$150 million and focused on artificial intelligence, regulatory technology, and environmental, social and governance fintech. The new allocation specifically targets quantum computing and AI capabilities, signalling a strategic escalation in Singapore’s financial sector technology investment.

Commitment (S$ millions) (S$M)Source: Orionmano Industries

Quantum Track: Co-Funding for Cybersecurity and Innovation

MAS established a dedicated quantum track under FSTI 3.0 comprising three grant types, each with defined co-funding levels. The Technology Centres Grant provides up to 50% co-funding for manpower, hardware, software infrastructure, subscriptions, and licences for 24 months, supporting financial institutions in building quantum computing and security innovation infrastructure in Singapore. The Technology Innovation Grant also offers up to 50% co-funding, split into two sub-tracks: one to catalyse meaningful institutional use cases that bring significant impact to business, and another to support strategic endeavours solving relevant industry-wide problem statements. The Security Grant provides up to 30% co-funding for experimentation and development of quantum technology-related pilots, specifically exploring Post-Quantum Cryptography (PQC) and Quantum Key Distribution (QKD) to safeguard firms’ critical data. This tiered structure prioritises infrastructure and applied use cases at higher co-funding rates while allocating the lowest support to security experimentation, reflecting the nascent but critical nature of quantum cybersecurity readiness.

AI and Data Grant Enhancements

MAS is also enhancing the existing AI and data grant scheme under FSTI 3.0 to help financial institutions establish AI innovation centres in Singapore. The expanded scope includes support for AI model building and training, deployment of AI models for high-impact use cases, governance and risk management, and testing and monitoring. These enhancements target the full lifecycle of AI adoption—from development to governance—and align with MAS’s broader push to integrate AI-driven risk models into financial operations. By co-funding these activities, MAS aims to accelerate the deployment of AI solutions that can improve credit risk assessment, fraud detection, and operational resilience across Singapore’s financial ecosystem.

Talent Development and Strategic Context

MAS is collaborating with Institutes of Higher Learning and the Institute of Banking and Finance to develop quantum talent specifically for the financial services sector. This talent pipeline initiative complements the grant structure, ensuring that financial institutions have access to skilled professionals capable of building and operating quantum and AI systems. The broader context for these investments is Singapore’s National Quantum Strategy, under which Deputy Prime Minister Heng Swee Keat announced S$300 million in investments on 30 May 2024. MAS Managing Director Chia Der Jiun, speaking at a media conference on 18 July, noted that quantum computing poses profound cybersecurity implications, as it could eventually render current encryption techniques vulnerable to attack. “We have to start building capabilities in the financial industry to be quantum-resilient,” he stated.

The combined S$100 million allocation under FSTI 3.0, alongside the S$300 million National Quantum Strategy, positions Singapore’s financial sector as a testbed for next-generation quantum-safe and AI-driven technologies. By co-funding quantum-safe cybersecurity and AI-driven risk models, MAS aims to secure critical financial infrastructure against emerging quantum threats while fostering a competitive edge in AI adoption. The tiered co-funding structure—50% for infrastructure and innovation grants versus 30% for security pilots—reflects a deliberate balance: incentivising foundational capability building while managing the higher risk and longer time horizon of quantum security deployment. For financial institutions operating in Singapore, these grants represent a material opportunity to offset capital expenditure on quantum and AI initiatives that would otherwise carry uncertain returns.