Singapore's MAS Allocates S$100M to FSTI 3.0 for Quantum-Safe Cybersecurity and AI Risk Models
The additional funding nearly doubles the scheme's total to S$250M, with co-funding rates up to 50% for quantum innovation centres and AI model building.
By Aiko Tanaka·April 14, 2026·5 min readOrionmano Industries
The additional funding nearly doubles the scheme's total to S$250M, with co-funding rates up to 50% for quantum innovation centres and AI model building.
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 co-fund quantum-safe cybersecurity infrastructure and AI-driven risk models, marking a strategic bet on post-quantum cryptography and machine-learning-based financial oversight. The top-up brings total FSTI 3.0 allocation to S$250 million, nearly doubling the initial S$150 million scheme launched in 2023, as Singapore positions its financial sector for an era of quantum-enabled threats and AI-transformed risk management.
FSTI 3.0 Quantum Track: Grant Structure and Co-Funding Rates
The new Quantum Track under FSTI 3.0 comprises three distinct grant types designed to address different stages of quantum technology adoption—from establishing physical innovation centres to piloting cryptographic defences against future quantum attacks.
The Technology Centres grant provides up to 50% co-funding on manpower and qualifying expenses—including hardware/software infrastructure, subscriptions, and licenses—for a period of 24 months. This grant supports the establishment of dedicated quantum computing and security innovation functions in Singapore, enabling financial institutions and global technology companies to explore and unlock opportunities arising from quantum technologies.
The Technology Innovation grant also offers up to 50% co-funding, structured across two sub-tracks: one supporting meaningful institutional use cases that bring significant business impact, and another addressing industry-wide problem statements. This grant aims to advance the exploration and implementation of quantum solutions that can transform financial services operations.
The Security grant provides up to 30% co-funding for pilots exploring quantum-safe defences, specifically Post-Quantum Cryptography (PQC) and Quantum Key Distribution (QKD). This grant targets enhanced cybersecurity readiness to better prepare Singapore's financial infrastructure and services for the quantum era, enabling experimentation and development of quantum technology-related pilots to safeguard firms' critical data.
Exhibit
Maximum Co-Funding Rate by Grant Type Under FSTI 3.0 Quantum Track
Percentage of eligible expenses covered by MAS
Maximum Co-Funding Rate (%)Source: Orionmano Industries
AI Innovation Enhancement and Industry-Wide Use Cases
Beyond quantum capabilities, MAS has enhanced the existing AI and data grant scheme under FSTI 3.0 to strengthen the development and deployment of AI technologies across Singapore's financial sector. The enhanced AI grant supports financial institutions in establishing AI innovation centres in Singapore for a range of functions, including AI model building and training, deployment of AI models for high-impact use cases, governance and risk management, as well as testing and monitoring.
This framework targets a significant gap in current financial AI adoption: while individual institutions have invested in proprietary models, industry-wide problems—such as cross-institutional scam detection—remain poorly addressed by siloed approaches. MAS has identified scam and fraud detection as the first industry-wide pilot project under the enhanced scheme. The pilot will pool transaction data across banks to detect suspicious movement of money across multiple bank accounts, enabling prompt investigation and intervention.
MAS will collaborate with banks, technology solution providers, and public agencies on the pilot, which serves as a test case for secure, privacy-protected data exchange frameworks. The enhanced scheme also supports development of policies and protocols that enable such collaboration while maintaining data protection standards.
Strategic Context: Doubling of the FSTI 3.0 Fund and Talent Development
The S$100 million additional commitment brings the total FSTI 3.0 allocation to S$250 million, nearly doubling the initial S$150 million scheme. This significant expansion reflects the urgency Singapore's financial regulator sees in preparing the sector for dual technological transitions: the shift toward quantum-resistant cryptography to defend against future quantum-enabled decryption capabilities, and the integration of advanced AI for real-time risk detection and management.
Exhibit
FSTI 3.0 Fund Allocation: Initial vs. Additional Commitment
The quantum track aligns with the National Quantum Strategy announced by Deputy Prime Minister Heng Swee Keat in May 2024, and MAS has been collaborating with the National Quantum Office on its implementation. Simultaneously, MAS is working with Institutes of Higher Learning and the Institute of Banking and Finance to develop talent development initiatives that support the build-up of quantum capabilities in the financial services sector.
The combined quantum and AI investments position Singapore to become a global hub for secure financial innovation, with near-term focus on the scam-detection pilot and the rollout of post-quantum cryptography tests across financial institutions. If successful, the FSTI 3.0 framework could serve as a template for other financial centres navigating the same technological transitions—and provide Singapore with a first-mover advantage in defining the standards and protocols that will govern quantum-safe finance in the coming decade.
