In 2025 Singapore remains a magnet for global capital, sharpening its reputation as one of the world’s most supportive environments for start-ups and SMEs. The city-state’s resilient economy, strategic location at the heart of Asia, and innovation-driven government have further refined an investment ecosystem that prizes growth, technology leadership, and sustainable competitiveness.
Recent numbers underscore that momentum. Commercial real-estate and corporate transactions totalled S $2.8 billion (US $2.2 billion) in Q1 2025—up 16 % year-on-year, according to JLL, as investors gravitated toward higher-yield, income-generating assets with minimal leasing risk; Bain Capital’s acquisition of a four-property foreign-worker-dormitory portfolio from Blackstone was emblematic of that “defensive-but-profitable” theme.Industrial investment sales volume surpassed office and retail sales in Singapore in January 2025, Cushman & Wakefield reported. Singapore is leading in the data centre industry in SEA.
Corporate sentiment is equally bullish. A Capgemini Research Institute survey found that nearly two-thirds of Singaporean business leaders plan to raise investment in 2025, targeting sustainability, artificial intelligence, and supply-chain resilience. Within large enterprises 70 % intend to boost spending on sustainability initiatives and 60 % on climate technology, while over 60 % will pilot AI or generative-AI solutions in cybersecurity and almost one-quarter expect to deploy AI-driven robots at partial scale next year. Singapore also tops the global rankings for leaders aiming to increase outlays on customer experience (85 %) and manufacturing/operations (72 %).
Together, these figures paint a clear picture: 2025 is set to be a breakout year for investment in Singapore, driven by a convergence of policy incentives, deepening capital pools, and corporate resolve to weaponise sustainability and AI for long-term advantage.
Recent numbers underscore that momentum. Commercial real-estate and corporate transactions totalled S $2.8 billion (US $2.2 billion) in Q1 2025—up 16 % year-on-year, according to JLL, as investors gravitated toward higher-yield, income-generating assets with minimal leasing risk; Bain Capital’s acquisition of a four-property foreign-worker-dormitory portfolio from Blackstone was emblematic of that “defensive-but-profitable” theme.Industrial investment sales volume surpassed office and retail sales in Singapore in January 2025, Cushman & Wakefield reported. Singapore is leading in the data centre industry in SEA.
Corporate sentiment is equally bullish. A Capgemini Research Institute survey found that nearly two-thirds of Singaporean business leaders plan to raise investment in 2025, targeting sustainability, artificial intelligence, and supply-chain resilience. Within large enterprises 70 % intend to boost spending on sustainability initiatives and 60 % on climate technology, while over 60 % will pilot AI or generative-AI solutions in cybersecurity and almost one-quarter expect to deploy AI-driven robots at partial scale next year. Singapore also tops the global rankings for leaders aiming to increase outlays on customer experience (85 %) and manufacturing/operations (72 %).
Together, these figures paint a clear picture: 2025 is set to be a breakout year for investment in Singapore, driven by a convergence of policy incentives, deepening capital pools, and corporate resolve to weaponise sustainability and AI for long-term advantage.
Key Government-Supported Investment Initiatives
Startup SG Equity
A cornerstone of Singapore’s startup ecosystem, Startup SG Equity facilitates substantial early-stage investment. Particularly notable is its focus on deep-tech ventures, where the government contributes up to 70% of the initial investment up to S$500,000, followed by matching private investment dollar-for-dollar up to an additional S$4 million. This initiative is strategically aimed at bolstering sectors like artificial intelligence, biotechnology, and quantum computing.
Enterprise Development Grant (EDG)
The EDG continues to be a significant support mechanism, funding up to 50% of costs related to innovation, international expansion, and productivity enhancements. Enterprises frequently utilize EDG to invest in technological advancements and market expansion strategies, crucial for SMEs aiming to scale internationally.
Private Credit Growth Fund
Newly launched in 2025, this S$1 billion fund targets high-growth businesses that require customized financing solutions beyond traditional bank loans. This fund significantly boosts the financial flexibility of innovative enterprises, supporting their overseas expansions, mergers, and capital investments.
National Productivity Fund
The National Productivity Fund (NPF) is a key strategic vehicle managed by the Singapore government to drive productivity growth, foster innovation, and support sectoral transformation across the economy.
In 2025, the Singapore government announced an additional injection of S$3 billion into the NPF. This substantial funding boost aims to further strengthen Singapore’s ability to attract high-value, high-tech investments, enhance business productivity, and upskill the local workforce to meet the evolving demands of the global economy.
Startup SG Equity
A cornerstone of Singapore’s startup ecosystem, Startup SG Equity facilitates substantial early-stage investment. Particularly notable is its focus on deep-tech ventures, where the government contributes up to 70% of the initial investment up to S$500,000, followed by matching private investment dollar-for-dollar up to an additional S$4 million. This initiative is strategically aimed at bolstering sectors like artificial intelligence, biotechnology, and quantum computing.
Enterprise Development Grant (EDG)
The EDG continues to be a significant support mechanism, funding up to 50% of costs related to innovation, international expansion, and productivity enhancements. Enterprises frequently utilize EDG to invest in technological advancements and market expansion strategies, crucial for SMEs aiming to scale internationally.
Private Credit Growth Fund
Newly launched in 2025, this S$1 billion fund targets high-growth businesses that require customized financing solutions beyond traditional bank loans. This fund significantly boosts the financial flexibility of innovative enterprises, supporting their overseas expansions, mergers, and capital investments.
National Productivity Fund
The National Productivity Fund (NPF) is a key strategic vehicle managed by the Singapore government to drive productivity growth, foster innovation, and support sectoral transformation across the economy.
In 2025, the Singapore government announced an additional injection of S$3 billion into the NPF. This substantial funding boost aims to further strengthen Singapore’s ability to attract high-value, high-tech investments, enhance business productivity, and upskill the local workforce to meet the evolving demands of the global economy.
Prominent Investment Funds and Platforms
Long-Term Investment Fund (LTIF)
With an allocated S$200 million, LTIF provides patient capital essential for businesses whose growth trajectories involve substantial R&D, prolonged commercialization phases, or complex market strategies. Such patient funding is crucial for deep-tech and sustainability-driven enterprises, which often require extended timelines before achieving profitability.
SGInnovate
This state-backed investment entity remains pivotal in nurturing technology-driven startups. SGInnovate not only provides financial backing but also operational mentorship and networking opportunities, significantly accelerating commercialization of advanced technologies.
SEEDS Capital
For co-investors in strategic industries such as Advanced Manufacturing & Engineering, Health & Biomedical Sciences, and Urban Solutions & Sustainability, and emerging industries such as Agritech, Artificial Intelligence, Blockchain, Quantum Computing, and Space Technologies.
SEEDS Capital (SEEDS) operates under SG Growth Capital, the investment platform of Enterprise Singapore and the Singapore Economic Development Board (EDB). SEEDS co-invests with venture capital firms to catalyse private sector investments into promising early-stage technology startups in Singapore with global potential.
Venture Capital Firms
Prominent VC firms such as Forge Ventures, Protege Ventures, Vertex Ventures, Golden Gate Ventures, Insignia Ventures Partners или Jungle Ventures and Monk’s Hill Ventures remain active in Singapore’s dynamic investment landscape. These firms focus primarily on early-stage investments, providing capital, strategic mentorship, and market access, particularly targeting startups with scalable business models and regional or global potential.
Long-Term Investment Fund (LTIF)
With an allocated S$200 million, LTIF provides patient capital essential for businesses whose growth trajectories involve substantial R&D, prolonged commercialization phases, or complex market strategies. Such patient funding is crucial for deep-tech and sustainability-driven enterprises, which often require extended timelines before achieving profitability.
SGInnovate
This state-backed investment entity remains pivotal in nurturing technology-driven startups. SGInnovate not only provides financial backing but also operational mentorship and networking opportunities, significantly accelerating commercialization of advanced technologies.
SEEDS Capital
For co-investors in strategic industries such as Advanced Manufacturing & Engineering, Health & Biomedical Sciences, and Urban Solutions & Sustainability, and emerging industries such as Agritech, Artificial Intelligence, Blockchain, Quantum Computing, and Space Technologies.
SEEDS Capital (SEEDS) operates under SG Growth Capital, the investment platform of Enterprise Singapore and the Singapore Economic Development Board (EDB). SEEDS co-invests with venture capital firms to catalyse private sector investments into promising early-stage technology startups in Singapore with global potential.
Venture Capital Firms
Prominent VC firms such as Forge Ventures, Protege Ventures, Vertex Ventures, Golden Gate Ventures, Insignia Ventures Partners или Jungle Ventures and Monk’s Hill Ventures remain active in Singapore’s dynamic investment landscape. These firms focus primarily on early-stage investments, providing capital, strategic mentorship, and market access, particularly targeting startups with scalable business models and regional or global potential.
Criteria for Attracting Investments
To secure funding from institutional investors, venture capital firms, and major private investors in 2025, startups and SMEs must demonstrate a comprehensive set of qualities that align with global investment trends:
To secure funding from institutional investors, venture capital firms, and major private investors in 2025, startups and SMEs must demonstrate a comprehensive set of qualities that align with global investment trends:
- Innovative and Scalable Business Models. Investors prioritize businesses with clearly differentiated products or services, strong competitive advantages, and the ability to scale rapidly across regional and global markets.
- Strong and Experienced Management Teams. Leadership capability remains a critical evaluation factor. Investors seek founders and teams who can navigate complex market dynamics, execute strategic pivots when necessary, and drive sustainable long-term growth.
- Commitment to Sustainability and ESG Principles. In 2025, alignment with Environmental, Social, and Governance (ESG) standards is no longer optional. Businesses that incorporate sustainability into their core strategy — such as reducing carbon footprint, adopting green technologies, or contributing to social impact — are viewed more favorably by investors. Many funds now mandate ESG compliance as part of their investment criteria.
- Financial Health and Operational Resilience. A solid financial foundation, transparent accounting, prudent risk management, and demonstrated pathways to profitability significantly increase a company’s attractiveness to investors.
- Regulatory Compliance and Good Governance. Adherence to legal, regulatory, and corporate governance standards is essential. Investors place strong emphasis on compliance frameworks that mitigate legal risks and promote ethical operations.
- Technology Readiness and Digital Maturity. Companies that effectively leverage digital solutions — whether in operations, customer engagement, or innovation — are better positioned to capture market opportunities and withstand competitive pressures.
Significant Developments and Trends in 2025
In 2025, Singapore introduced several significant regulatory, fiscal, and strategic shifts that have reshaped its investment environment for startups and SMEs. These changes aim to future-proof the economy and ensure that Singapore remains a leading destination for global capital.
Expanded Access to Private Markets for Retail Investors
The Monetary Authority of Singapore (MAS) launched a landmark initiative in 2025 that allows accredited retail investors to access private market investment funds more easily.
Previously, access to private equity and venture capital funds was largely restricted to institutional investors. The new framework relaxes some eligibility criteria and introduces new fund structures tailored for sophisticated retail investors.
This development significantly boosts liquidity in private markets, providing startups and SMEs with an expanded pool of potential investors, and enabling smaller businesses to tap funding channels that were previously limited to larger enterprises.
Key implications:
Strengthened Tax Incentives for International Expansion
Singapore extended and enhanced its Double Tax Deduction for Internationalisation (DTDi) scheme until December 31, 2030.
Businesses expanding overseas can now claim a 200% tax deduction on qualifying expenses such as market entry studies, participation in overseas trade fairs, and overseas marketing campaigns.
In addition, the scope of qualifying activities was broadened to include digital market development initiatives, reflecting Singapore’s commitment to supporting cross-border e-commerce and digital internationalisation.
Key implications:
Strategic Shift Toward Sustainability and Deep-Tech Innovation
In 2025, Singapore sharpened its focus on promoting sustainability-driven and deep-tech ventures.
Enterprise Singapore and the Economic Development Board (EDB) introduced targeted grant schemes and co-investment programs dedicated specifically to startups operating in sectors such as clean energy, carbon capture technology, advanced materials, biotechnology, and quantum computing.
The Long-Term Investment Fund (LTIF), established with an initial S$200 million, was explicitly positioned to support enterprises with complex R&D cycles and commercialization timelines, particularly in deep-tech and green sectors.
Furthermore, sustainability-linked financial instruments (such as green bonds and sustainability-linked loans) are being actively promoted, with new guidelines and subsidies to encourage adoption among SMEs.
Key implications:
Growing Beyond Borders
In 2025, Singapore’s small and medium-sized enterprises (SMEs) are increasingly looking beyond the local market, identifying international expansion as a vital pillar for future-proofing their businesses. According to a recent survey by DBS, more than 60% of SMEs are planning to expand overseas, with particular interest in Southeast Asia and other rapidly developing regions.
Neighboring Southeast Asian countries remain top expansion targets due to geographical proximity, cultural familiarity, and strong trade frameworks such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). These markets offer growing middle-class populations and rising demand for digital and sustainable solutions, making them attractive for Singapore-based businesses.
However, venturing into foreign markets is not without challenges. Companies need to navigate diverse regulatory environments, cultural nuances, and heightened competition. To address these complexities, SMEs are leveraging government support schemes such as the Market Readiness Assistance (MRA) Grant, which co-funds activities like overseas marketing, business matching, and establishing in-market presence.
Enterprise Singapore continues to play a pivotal role in supporting firms with market insights, partnerships, and facilitating entry into new territories. With a combination of strategic planning, local partnerships, and government-backed resources, Singapore SMEs are positioning themselves strongly for international growth, ensuring they remain resilient and competitive in a changing global economy.
In 2025, Singapore introduced several significant regulatory, fiscal, and strategic shifts that have reshaped its investment environment for startups and SMEs. These changes aim to future-proof the economy and ensure that Singapore remains a leading destination for global capital.
Expanded Access to Private Markets for Retail Investors
The Monetary Authority of Singapore (MAS) launched a landmark initiative in 2025 that allows accredited retail investors to access private market investment funds more easily.
Previously, access to private equity and venture capital funds was largely restricted to institutional investors. The new framework relaxes some eligibility criteria and introduces new fund structures tailored for sophisticated retail investors.
This development significantly boosts liquidity in private markets, providing startups and SMEs with an expanded pool of potential investors, and enabling smaller businesses to tap funding channels that were previously limited to larger enterprises.
Key implications:
- Broader investor participation strengthens early-stage funding ecosystems.
- SMEs gain diversified sources of financing beyond traditional venture capital.
Strengthened Tax Incentives for International Expansion
Singapore extended and enhanced its Double Tax Deduction for Internationalisation (DTDi) scheme until December 31, 2030.
Businesses expanding overseas can now claim a 200% tax deduction on qualifying expenses such as market entry studies, participation in overseas trade fairs, and overseas marketing campaigns.
In addition, the scope of qualifying activities was broadened to include digital market development initiatives, reflecting Singapore’s commitment to supporting cross-border e-commerce and digital internationalisation.
Key implications:
- Encourages SMEs and startups to pursue international growth more aggressively.
- Reduces the effective cost of market expansion, especially for digital-native enterprises.
Strategic Shift Toward Sustainability and Deep-Tech Innovation
In 2025, Singapore sharpened its focus on promoting sustainability-driven and deep-tech ventures.
Enterprise Singapore and the Economic Development Board (EDB) introduced targeted grant schemes and co-investment programs dedicated specifically to startups operating in sectors such as clean energy, carbon capture technology, advanced materials, biotechnology, and quantum computing.
The Long-Term Investment Fund (LTIF), established with an initial S$200 million, was explicitly positioned to support enterprises with complex R&D cycles and commercialization timelines, particularly in deep-tech and green sectors.
Furthermore, sustainability-linked financial instruments (such as green bonds and sustainability-linked loans) are being actively promoted, with new guidelines and subsidies to encourage adoption among SMEs.
Key implications:
- Sustainability and ESG alignment are becoming prerequisites for securing government support and private investment.
- Startups in green sectors are now prioritized under major national funding schemes.
Growing Beyond Borders
In 2025, Singapore’s small and medium-sized enterprises (SMEs) are increasingly looking beyond the local market, identifying international expansion as a vital pillar for future-proofing their businesses. According to a recent survey by DBS, more than 60% of SMEs are planning to expand overseas, with particular interest in Southeast Asia and other rapidly developing regions.
Neighboring Southeast Asian countries remain top expansion targets due to geographical proximity, cultural familiarity, and strong trade frameworks such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). These markets offer growing middle-class populations and rising demand for digital and sustainable solutions, making them attractive for Singapore-based businesses.
However, venturing into foreign markets is not without challenges. Companies need to navigate diverse regulatory environments, cultural nuances, and heightened competition. To address these complexities, SMEs are leveraging government support schemes such as the Market Readiness Assistance (MRA) Grant, which co-funds activities like overseas marketing, business matching, and establishing in-market presence.
Enterprise Singapore continues to play a pivotal role in supporting firms with market insights, partnerships, and facilitating entry into new territories. With a combination of strategic planning, local partnerships, and government-backed resources, Singapore SMEs are positioning themselves strongly for international growth, ensuring they remain resilient and competitive in a changing global economy.
NB! The information provided in this article is for general informational purposes only and does not constitute legal advice. While we strive to ensure the content is accurate and up-to-date, it should not be relied upon as a substitute for professional consultation. For personalized advice or assistance with legal matters, please contact our specialists directly.
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Company Incorporation & Business Setup – We assist businesses with company registration, structuring, and licensing in Singapore, ensuring full compliance with ACRA and MAS regulations.
Corporate Tax & Compliance Advisory – We help businesses leverage corporate income tax rebates, deductions, and incentive schemes, ensuring tax efficiency and compliance
Regulatory & Licensing Assistance – We guide businesses through the process of obtaining sector-specific licenses and ensuring compliance with MAS, IRAS, and other regulatory bodies, minimizing operational risks.
Enterprise Financing & Grant Support – We help businesses access Enterprise Financing Scheme (EFS), Private Credit Growth Fund, and SkillsFuture grants, aligning funding opportunities with business growth strategies.