With an aim to become a “global Fintech hub,” the Monetary Authority of Singapore (MAS) announced a 100 million Singaporean dollars ($74.36 million) investment into quantum computing and artificial intelligence (AI) initiatives.
The investment from MAS will go into its Financial Sector Technology & Innovation Scheme (FSTI 3.0).
This latest investment from Singapore’s MAS comes after initial $110 million in cash which was injected in August 2023.
MAS will commit an additional S$100 million under the Financial Sector Technology and Innovation Grant Scheme (FSTI 3.0) to support financial institutions in building capabilities in #Quantum and #ArtificialIntelligence technologies. More here: https://t.co/Z4rpT0MpKA pic.twitter.com/C9wd03eb4q
— MAS (@MAS_sg) July 18, 2024
What is Singapore’s FSTI 3.o?
The FSTI 3.0 was created in 2022 with an aim to strengthen Singapore’s bid to become a global powerhouse within fintech.
This particular cash injection has been made to help local financial institutions establish quantum computing infrastructure and speed up AI development and adoption.
MAS originally committed 150 million Singapore dollars (around $110 million) over a three-year period. This latest 100 million Singapore dollar investment is in addition to that.
The FSTI 3.0 scheme is live until March 2026. It is likely that the Singaporean government may consider extending the scheme based on its impact on the island nation’s fintech landscape.
Quantum Computing Advancement: A Priority For Singapore
Financial institutions deemed eligible by MAS will receive up to 50% funding for the construction of quantum computing technology centres.
Additionally, firms building quantum-based cybersecurity solutions will be eligible for up to 30% co-funding.
In a press release regarding the investment, the regulator said, “Quantum technology is a rapidly advancing field that holds significant potential to transform the financial industry and broader economy. MAS has been collaborating with the National Quantum Office following the announcement of the National Quantum Strategy by Deputy Prime Minister Heng Swee Keat in May 2024. MAS will establish a Quantum track under FSTI 3.0 to support financial institutions’ interests to build quantum capabilities in Singapore.”
MAS To Build AI Centres, Pilot Project Will Combat Growing Cyber-Crime
The other part of the fund will be used for building AI innovation centres.
The AI centres will facilitate the building of AI models, to be trained and deployed across various use cases. One such use case being prioritised is cyber-security.
MAS identified scam and fraud detection as a use case for the first pilot project. It will work with banks, technology solution providers and public agencies on this. The funding will support projects that accelerate the development of industry-wide AI solutions and high-impact use cases.
Commenting on the adoption of AI, the regulator said, “While financial institutions have been progressively adopting AI, recent technological advancements have made such tools more widely accessible and increased the pace of adoption. With the advent of Generative AI, financial institutions have embarked on initiatives to map the technology’s opportunities and risks, and have begun piloting it across a range of use cases.”
“Nevertheless,” MAS pointed out, “the level of AI-readiness and adoption varies across financial institutions in Singapore.”
– 🏢 The Financial Sector Technology and Innovation (FSTI 3.0) scheme in motion till March 2026.
– 📅 Possible extension if impactful on Singapore’s fintech landscape.
– 🔐 Paxos gets MAS regulatory approval for stablecoin launch, backed by DBS.— Talk AI Today (@TalkAIToday) July 22, 2024
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