MAS Commits S$100 Million to Boost Quantum and AI Capabilities in Singapore’s Financial Sector
The Monetary Authority of Singapore (MAS) has announced a significant investment of S$100 million (approximately US$74.3 million) to enhance quantum computing and artificial intelligence (AI) capabilities within Singapore’s financial sector. This additional funding, part of the Financial Sector Technology and Innovation Grant Scheme (FSTI 3.0), aims to solidify Singapore’s position as a leading fintech hub and accelerate innovation in financial services.
The initiative, announced on July 18, 2024, comes in response to the rapidly evolving landscape of quantum technology and AI, which hold immense potential to transform the financial industry. MAS is collaborating with the National Quantum Office following the announcement of the National Quantum Strategy by Deputy Prime Minister Heng Swee Keat in May 2024.
Under the new Quantum track of FSTI 3.0, MAS will offer three types of grants:
- Technology Centres grant: Providing up to 50% funding support for manpower and infrastructure expenses over 24 months to establish quantum computing and security innovation functions.
- Technology Innovation grant: Offering up to 50% co-funding for impactful institutional use cases and industry-wide problem-solving projects.
- Security grant: Supplying up to 30% funding for projects exploring Post-quantum Cryptography (PQC) and Quantum Key Distribution (QKD) to enhance cybersecurity readiness.
In the AI domain, MAS will support financial institutions in establishing AI innovation centers in Singapore. These centers will focus on AI model building and training, deployment of high-impact use cases, governance and risk management, as well as testing and monitoring.
MAS Managing Director Chia Der Jiun emphasized the importance of building quantum-resilient capabilities in the financial industry, noting that quantum computing could eventually render current encryption techniques vulnerable to attacks.
The regulator has also identified scam and fraud detection as a use case for the first AI pilot project. MAS plans to work with banks, technology solution providers, and public agencies to develop frameworks and platforms that enable secure, privacy-protected data exchange for industry-wide collaboration.
This substantial investment underscores Singapore’s commitment to staying at the forefront of technological innovation in the financial sector. By fostering the development of quantum and AI capabilities, MAS aims to enhance the competitiveness and resilience of Singapore’s financial services industry in the face of rapidly evolving technological landscapes.
