Additional funding to co-fund quantum computing and AI innovation in Singapore’s financial sector by 2026.

MAS’s S$100M Commitment Under FSTI 3.0

The Monetary Authority of Singapore (MAS) has committed up to S$100 million (approximately USD 77 million) under the Financial Sector Technology and Innovation Scheme (FSTI 3.0) to co-fund quantum-safe cybersecurity and AI-driven risk models, signalling a strategic push to future-proof Singapore’s financial infrastructure against quantum-era threats. The funds are earmarked for quantum computing and artificial intelligence capabilities in the financial sector, as announced by MAS in July 2024. This commitment is part of MAS’s broader FSTI 3.0 programme, which was established in 2022 with an initial S$150 million envelope and runs until March 2026.

S$ million (S$ million)Source: Orionmano Industries

Quantum Track: Three Grant Pillars

MAS has established a dedicated Quantum track under FSTI 3.0, with S$60 million specifically earmarked for quantum initiatives. The Quantum track is structured around three grant types, each targeting a distinct stage of quantum capability building in the financial sector.

The Technology Centres grant provides up to 50% co-funding on manpower and qualifying expenses—including hardware, software infrastructure, subscriptions, and licences—for a period of 24 months. This grant supports financial institutions and global technology companies in setting up quantum computing and security innovation centres in Singapore, enabling them to explore and unlock new opportunities arising from quantum technologies.

The Technology Innovation grant offers up to 50% co-funding across two sub-tracks: the first targets institutional use cases, helping financial institutions develop quantum solutions that can bring significant business impact; the second is designed to solve industry-relevant problems through collaborative quantum research and development.

The Security grant provides funding support of up to 30% for pilots that experiment with Post-quantum Cryptography (PQC) and Quantum Key Distribution (QKD). This grant aims to enhance cybersecurity readiness and better prepare Singapore’s financial infrastructure and services for the quantum era, specifically by safeguarding firms’ critical data against future quantum-enabled decryption attacks.

MAS is 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—as well as Institutes of Higher Learning and the Institute of Banking and Finance on talent development initiatives to support the growth of quantum capabilities in the financial services sector.

AI and Data Grant Enhancements

In parallel with the Quantum track, MAS has enhanced the existing AI and data grant scheme under FSTI 3.0 to support financial institutions in building AI innovation centres in Singapore. The enhancement covers the full lifecycle of AI deployment: AI model building, training, and deployment for high-impact use cases, as well as governance, risk management, testing, and monitoring.

The enhancement specifically addresses the varying levels of AI-readiness across financial institutions. MAS has noted that while financial institutions have been progressively adopting AI, recent technological advancements—particularly the advent of Generative AI—have made such tools more widely accessible and increased the pace of adoption. Nevertheless, the level of AI-readiness and adoption varies significantly across financial institutions in Singapore. The enhanced grant scheme is designed to support institutions that are at different stages of AI maturity, from initial experimentation to production-scale deployment.

Broader FSTI 3.0 Context and Timeline

FSTI 3.0 was established in 2022 with an initial commitment of S$150 million, running until March 2026. The scheme covers six focus areas: quantum computing, artificial intelligence, ESG FinTech, RegTech, and other cutting-edge technologies with financial sector applications. The S$100 million for quantum and AI is part of the total FSTI 3.0 envelope, with S$60 million specifically allocated to the Quantum track.

FSTI 3.0 builds on earlier iterations of the scheme—FSTI 1.0 and 2.0—which MAS introduced in 2015 to support the creation of a vibrant ecosystem for innovation in the financial sector. The current version represents a significant acceleration in funding for emerging technologies, particularly quantum computing and AI.

The initiative also complements Singapore’s National Quantum Strategy, announced in May 2024. MAS has been collaborating with the National Quantum Office on this broader national effort, which aims to position Singapore as a leader in quantum research, talent development, and industry adoption.

The FSTI 3.0 quantum and AI grants are expected to attract global fintech and research talent, positioning Singapore as a testbed for post-quantum cryptography and responsible AI in finance. With the scheme running until March 2026, financial institutions and fintech companies—which are eligible to apply—have a defined window to leverage co-funding for building quantum computing and AI innovation centres in Singapore. Future iterations of FSTI may be announced beyond March 2026 based on industry needs.