MAS Allocates S$100M to Quantum-Safe Security and AI Risk Models Under FSTI 3.0
Grant scheme co-funds post-quantum cryptography pilots and AI model development for financial institutions in Singapore.
By Marcus Tan·April 12, 2026·4 min readOrionmano Industries
Grant scheme co-funds post-quantum cryptography pilots and AI model development for financial institutions in Singapore.
Additional S$100 Million Commitment to FSTI 3.0
The Monetary Authority of Singapore (MAS) announced on 18 July 2024 an additional S$100 million commitment under the Financial Sector Technology and Innovation Grant Scheme (FSTI 3.0) to accelerate quantum and AI capabilities in the financial sector. The new allocation specifically targets quantum-safe cybersecurity and AI-driven risk model development, drawing funds from MAS's Financial Sector Development Fund.
The S$100 million is in addition to the initial S$150 million already committed under FSTI 3.0, which was announced by then Deputy Prime Minister Lawrence Wong at the Singapore FinTech Festival in 2022. This brings total funding under FSTI 3.0 to S$250 million. The original programme covered six tracks—Centre of Excellence, Industry-Wide Projects, Innovation Acceleration, AIDA, RegTech, and ESG FinTech. The new money carves out dedicated support for quantum technology and enhanced AI deployment.
Mas Deputy Managing Director of Markets and Development, Leong Sing Chiong, confirmed at a 18 July media briefing that the sum would be drawn from MAS's Financial Sector Development Fund. "We are earmarking additional funds to support both quantum and AI initiatives," he said.
Exhibit
FSTI 3.0 Total Commitment Breakdown (S$ million)
Initial commitment vs. new quantum and AI allocation
Amount (S$ million)Source: Orionmano Industries
Quantum Technology Grants Under the New Track
MAS will establish a dedicated Quantum track under FSTI 3.0 comprising three grant types. The Technology Centres grant provides up to 50% co-funding for manpower, hardware, software subscriptions, and licences over a 24-month period, supporting financial institutions in building quantum computing and security innovation infrastructure in Singapore.
The Technology Innovation grant also offers up to 50% co-funding. It has two sub-tracks: the first supports institutional use cases within individual firms, while the second funds strategic endeavours to solve industry-wide problem statements using quantum solutions.
The Security grant provides up to 30% co-funding for experiments and pilots in post-quantum cryptography (PQC) and quantum key distribution (QKD). The grant aims to enhance cybersecurity readiness for the quantum era, safeguarding firms' critical data as quantum computing advances threaten existing encryption standards.
Exhibit
Co-Funding Rate by Grant Type Under FSTI 3.0 Quantum Track
Maximum percentage of eligible expenses covered by MAS
Co-Funding Rate (%)Source: Orionmano Industries
Enhanced AI and Data Grant Scheme
Beyond quantum, MAS will enhance the existing AI and data grant scheme under FSTI 3.0 to accelerate AI adoption across Singapore's financial institutions. The enhanced scheme supports financial institutions in establishing AI innovation centres in Singapore for a 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.
A specific pilot project on scam and fraud detection will pool data across banks to detect suspicious money movements. "By pooling data across banks, suspicious movement of money across bank accounts of multiple banks can be detected, and prompt action taken to investigate and stop these scams," said Mr Chia of MAS, as reported by the EDB. MAS will work with banks, technology solution providers, and public agencies on the pilot.
The enhanced scheme also supports development of frameworks and platforms for policies and protocols that enable secure and privacy-protected data exchange, allowing financial institutions to collaborate on industry-wide use cases.
Talent Development and Ecosystem Collaboration
MAS will collaborate with Institutes of Higher Learning and the Institute of Banking and Finance on talent development initiatives to support the development of quantum capabilities in the financial services sector. This human-capital focus complements the technology investments and reflects MAS's holistic approach to building a sustainable quantum ecosystem.
The quantum track aligns with Singapore's National Quantum Strategy, announced by Deputy Prime Minister Heng Swee Keat in May 2024, which committed S$300 million in investments. MAS has been collaborating with the National Quantum Office since that announcement to coordinate efforts.
As quantum technology continues to advance rapidly, MAS's structured approach—combining infrastructure grants with industry-wide problem-solving and targeted cybersecurity pilots—positions Singapore as a leading hub for fintech innovation. The additional S$100 million under FSTI 3.0 has the potential to attract global talent and investment to Singapore's financial sector. The scam detection pilot, with its cross-bank data pooling model, could serve as a template for regional collaboration across ASEAN financial regulators, strengthening collective defences against financial crime in the quantum era.