Singapore turns 60 – What strengths will shape its future? (Part 2 of 3)

This article is part of a three-piece series on Singapore SG60 special. You can find the previous piece here.

I. Introduction

When confronted with the overwhelming obstacles described in Part 1, Singapore's timeless strengths become invaluable resources. A distinct set of characteristics has been developed by decades of purposeful investment in human capital development, institution-building, and proactive engagement with the global economy. These include a reputation for unshakeable governance, innovation in sustainable finance, a highly educated and flexible workforce, a world-class financial sector represented by its growing family office and fintech centres, and a principled non-alignment position.

In-depth analysis of these arduously defended pillars is provided in this second section of our commentary, which shows how each is not just a static accomplishment but rather a dynamic capability that can be strategically used to reduce vulnerabilities, take advantage of fresh opportunities, and radically reinterpret Singapore's place and significance in ASEAN and the larger Asian region, setting the stage for SG100 and beyond.

II. Non-alignment: A beacon of neutrality in a polarizing world

Since gaining independence, Singapore's non-alignment foreign policy philosophy, which is frequently characterised as "friend to all, enemy to none," has been essential to its survival and development. A small, multicultural city-state in a geopolitically complicated area must avoid overt allegiance to any large power and maintain strategic autonomy. Singapore is able to handle big-power rivalries, particularly the growing US-China competition, without feeling forced to choose sides thanks to its ethical attitude.

• How it Works in Practice: Singapore converts its non-alignment into balanced engagement and practical diplomacy. In order to improve interoperability and regional security, it participates in joint military drills like Exercise Cope Tiger and maintains strong defence and security connections with the United States. At the same time, it develops strong and complex cultural and economic ties with China, its biggest trading partner, through a number of bilateral projects. Singapore is able to take advantage of the enormous economic opportunities brought about by China's expansion while simultaneously gaining security cooperation with the West thanks to this delicate balancing act. Because of its reputation as an impartial and trustworthy partner, it can act as a mediator between conflicting interests, promoting communication and collaboration on regional and international concerns.

• Benefits for Trade and Investment: The broad and varied economic activities of Singapore demonstrate the useful benefits of non-alignment. According to the Ministry of Foreign Affairs (MFA, EDB), its extensive network of 27 Free Trade accords (FTAs), which includes 20 bilateral and 7 regional accords, accounts for 90% of the world's GDP and 70% of its trade. Reducing over-reliance on any one economy and offering resilience against protectionist tendencies, this extensive network guarantees Singaporean companies preferred access to a variety of markets. More importantly, Singapore attracts and retains foreign direct investment (FDI) from all over the world due to its neutrality and rule of law.

Its ability to draw in money from powerful rival economies is demonstrated by the fact that, in 2022, US investment in Singapore was US$324 billion, while Chinese FDI in Singapore was US$111.4 billion (MFA, CEIC Data). Singapore is protected from economic shocks resulting from tense bilateral ties between major powers by this diversification of investment sources.

• Role in multilateralism and ASEAN: By using its non-aligned status, Singapore actively supports regional architectures and a rules-based multilateral economic system. By promoting a strong, cohesive, and unified ASEAN that can successfully interact with major countries and influence the regional security and economic agenda, it continuously promotes ASEAN Centrality. Singapore utilises its reputation to build consensus, bridge gaps, and help set standards in important areas including cybersecurity, the digital economy, and climate change. It does this by organising high-level regional discussions, such as the Shangri-La Dialogue, and chairing several ASEAN forums. Its non-aligned position gives it the moral right to challenge authority and stand up for group interests, which strengthens ASEAN's position on the international scene.

III. The family office mecca and Fintech frontier: Catalysts for economic dynamism

By deliberately positioning itself as a leading global hub for wealth management and a fintech innovation environment, Singapore has drawn substantial investment and fostered innovative financial services. These industries are more than just financial growth generators; they are also increasingly acting as stimulants for innovation and wider economic diversification.

1. The global family office mecca: The number of family offices in Singapore has increased rapidly, solidifying the country's position as Asia's go-to destination for ultra-high net worth individuals and families looking to manage their fortune and leave a lasting legacy.

• Growth drivers and statistics: A strong combination of variables, including Singapore's unmatched political and economic stability, a strong and reliable judicial system, its advantageous geographic location, a large pool of skilled professionals, and very alluring tax and regulatory regimes, support this country's explosive growth. Through encouraging policies, the Monetary Authority of Singapore (MAS) has aggressively promoted this atmosphere. Singapore is a financially attractive option because of the tax exemptions offered by the Section 13O and 13U tax incentive schemes (for single and multi-family workplaces, respectively). These programs have been simplified, and MAS is actively attempting to shorten approval wait times (CNA, July 2025). This growth trend is impressive:

• By the end of 2023, there were 1,400 Single Family Offices (SFOs) in Singapore, up from about 400 in 2020.

• The overall number of SFOs increased by almost 43% from 2023 to over 2,000 by the end of December 2024 (MAS, as quoted by Asia Asset Management, January 2025; IMC Group, February 2025; The Economic Times, July 2025). In 2024, almost 600 new SFOs opened offices in Singapore (IMC Group, February 2025).

• Although exact end-of-2025 numbers are still pending, some predict that family offices' assets under management (AUM), which were S$90 billion in 2020, will surpass S$120 billion by the end of 2025 (Stashaway.sg, June 2025), fuelled by ongoing inflow of capital.

• Beyond wealth management: Economic diversification and job creation: Family offices are becoming more complex organisations that do more than just manage wealth. They actively participate in the actual economy as investors, which is vital to Singapore's economic diversity. Their investments are increasingly focused on local start-ups in high-growth, non-financial industries like biotechnology, deep technology, and green technological solutions (MAS), as well as private capital markets like venture capital and private equity. Supporting emerging industries, fostering Singapore's innovation environment, and assisting local businesses in growing are all made possible by this funding influx. By the end of 2022 (MAS), Single Family Offices (SFOs) alone created about 1,400 jobs for local residents and Permanent Residents (PRs).

These are mostly high-value managerial and professional positions that cover legal, tax, philanthropic, administrative, and industry-specific knowledge in addition to financial services. They provide a substantial contribution to Singapore's highly skilled labour market.

• Mitigating risks: AML/CFT frameworks: MAS maintains strict regulatory control, especially with regard to Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT), in recognition of the inherent dangers associated with massive capital inflows. To stop illegal money flows and protect its standing as a clean and trusted financial centre (MAS), Singapore has strong legal and regulatory frameworks for AML/CFT that call for increased due diligence, reporting suspicious transactions, and international collaboration. One important differentiation that draws in more legitimate capital is this dedication to financial purity.

2. Singapore as a Fintech frontier: Singapore is now a global leader in financial technology thanks to its successful development of a vibrant and creative fintech ecosystem.

• Growth segments and investment: The fintech industry in Singapore is still attracting a lot of investment; in 2022, it reached S$4.1 billion, ranking second in the world only to the US (MAS, Accenture). Payments, insurtech, RegTech (regulatory technology), and increasingly sustainable finance are important growth areas. With MAS actively investigating frameworks for stablecoin regulation and digital currency pilots, the city-state is likewise at the forefront of the rapidly expanding Web3 and digital asset space. According to Fintech News Singapore, the number of fintech companies in Singapore increased from 200 in 2015 to over 1,400 in 2022.

• MAS's proactive regulatory approach: Through a practical and progressive regulatory approach, the Monetary Authority of Singapore (MAS) plays a crucial role in promoting this innovation. Its "sandbox" efforts speed up market entry by enabling fintech companies to test novel ideas in a controlled setting prior to full-scale deployment. In order to promote more competition and innovation in the banking industry, MAS has also issued licenses to digital banks (such as GXS Bank and Trust Bank). Emerging technologies are always being addressed by regulatory frameworks, which guarantee stability and innovation.

• Enhancing regional financial inclusion: Enhancing financial inclusion throughout ASEAN is significantly impacted by Singapore's fintech innovations. Singapore enables quick, easy, and safe cross-border transactions through bilateral payment links. Notable instances consist of:

• The PayNow-PromptPay linkage (Singapore-Thailand), which, since its establishment in 2021, has handled more than S$600 million in transactions, greatly assisting SMEs engaged in cross-border commerce (MAS) and migratory workers.

• The PayNow-DuitNow linkage (Singapore-Malaysia), introduced in 2022, allows for immediate payments between the two nations via QR codes. In an effort to build a more cohesive and economically inclusive regional environment, MAS is actively investigating comparable connections with other ASEAN nations, such as the Philippines, Vietnam, and India. This lessens the need for more costly, conventional remittance channels.

• Emerging areas: AI and green Fintech: By improving fraud detection, risk management, personalised financial services, and automating compliance procedures, Singapore is using AI to revolutionise the financial industry. To hasten the implementation of AI in finance, MAS introduced the AI and Data Analytics (AIDA) grant and included AI goals into the National AI Strategy (NAIS). Additionally, Singapore is a growing centre for green fintech, creating online tools to help with sustainable finance projects including carbon credit trading, green bond issuance platforms, and ESG data analytics.

IV. Unwavering governance: The bedrock of trust and stability

Singapore's reputation for transparent, efficient, and reliable government is a major factor in its long-term success. This steadfast dedication to the rule of law, meritocracy, and incorruptibility has been a crucial difference, drawing in foreign investment, creating a stable economic climate, and boosting public confidence.

• Pillars of Governance:

• Meritocracy: This rule guarantees that people are chosen and advanced according to their skills and output rather than their connections or upbringing. This ensures competence at all decision-making levels and is applicable to national institutions, political leadership, and the civil service.

• Incorruptibility: Because of its strict anti-corruption legislation and strong enforcement by organisations like the Corrupt Practices Investigation Bureau (CPIB), Singapore routinely ranks among the least corrupt nations in the world. Singapore's dedication to a zero-tolerance attitude to corruption was shown in 2023 when it was placed fourth on Transparency International's Corruption Perception Index (CPI). Both citizens and investors are greatly encouraged by this.

• Rule of Law: For both individuals and corporations, a robust, unbiased, and open legal system offers fairness and predictability. Multinational firms greatly value the predictable working environment that is created by the enforcement of contracts, the protection of intellectual property, and the effective resolution of disputes.

• Pragmatism and long-term planning: The pragmatic approach to problem-solving and unwavering focus on long-term strategic planning are hallmarks of Singaporean governance. The Concept Plan, a long-term physical development strategy for the next 50–100 years, and the Singapore Green Plan 2030, which establishes challenging national goals for sustainable development, serve as examples of this.

• Maintaining trust amidst challenges: Despite its excellent reputation for governance, Singapore is not impervious to criticism. Public trust has been put to the test by recent high-profile events, such as the corruption investigation involving a former cabinet minister and a well-known businessman in 2023, as well as problems with legislative behaviour. But the government's response has always placed a strong emphasis on accountability and transparency. The goal is to reinforce the commitment to integrity through prompt investigations by impartial organisations such as the CPIB, public publication of findings, and decisive responses (such as resignations and legal procedures).

• Impact on FDI and talent attraction: One key factor that contributes to Singapore's appeal as a global commercial hub is its strong governance. According to an American Chamber of Commerce in Singapore survey conducted in 2023, 91% of US businesses rated Singapore's governance and political stability as "good" or "excellent" (AmCham). Due to the high degree of faith in its political stability, predictability of regulations, and lack of corruption, investments are considerably reduced in risk, and multinational firms are encouraged to locate their regional or worldwide headquarters in Singapore. In a similar vein, Singapore attracts top talent from around the world not only because of its economic prospects but also because of its high standard of living, safety, and guarantee of a just and equitable society. A positive feedback loop is created by this steady influx of both human talent and cash, strengthening Singapore's competitive advantage.

V. Leadership in sustainable finance: Driving green growth and regional ambition

Given its critical role in directing funds towards green and transition initiatives that support regional and global climate goals, Singapore has quickly become a major centre for sustainable finance.

• The Singapore-Asia Taxonomy (SAT): The Singapore-Asia Taxonomy (SAT) for Sustainable Finance, which was introduced by MAS, is a key component of Singapore's sustainable finance policy. Based on their effects on the environment, economic activities are categorised as "green," "transition," or "unaligned" using the principles-based, multi-sector SAT taxonomy. Its cutting-edge "traffic light" system offers businesses and financial institutions detailed advise. Importantly, the SAT recognises the different levels of economic development and fossil fuel dependence among ASEAN economies by including a "transition pathway" for hard-to-abate industries. This strategy allows for plausible pathways to decarbonisation rather than an abrupt termination, making it more adaptable and feasible throughout the area (MAS, East Asia Forum). In order to promote uniformity and lessen fragmentation in the global sustainable finance markets, the SAT was created to be compatible with international standards, such as the EU Taxonomy.

• Green finance ecosystem and statistics: A comprehensive ecosystem for green finance is being aggressively fostered in Singapore. Green bond and loan issuances (MAS) totalled S$44 billion on the Singaporean market in 2022, demonstrating a robust trend in sustainable capital mobilisation. As part of the Singapore Green Plan, MAS issued its first S$2.4 billion green bond and introduced its Green Bond Framework in 2021, showcasing the government's commitment. Singapore is establishing itself as a centre for carbon services in addition to conventional financial products.

• Climate Impact X (CIX): CIX is an international marketplace and exchange for premium voluntary carbon credits that was established in 2021 as a joint venture by DBS, Standard Chartered, Temasek, and SGX. It seeks to expand carbon markets, giving companies looking to invest in environmentally friendly products or offset emissions transparency and liquidity.

• AirCarbon Exchange (ACX): ACX, another Singapore-based carbon market, offers a fully digital carbon credit trading platform. These forums are essential for promoting the flow of funds into ASEAN and international decarbonisation initiatives.

• Enabling regional climate ambition: ASEAN nations can more easily access green funds and hasten their shift to low-carbon economies thanks to Singapore's leadership in sustainable finance. The SAT can help close the large investment gap required for climate action by offering a consistent vocabulary and framework for sustainable investments, which will assist unlock financing for green projects throughout the region. The creation of the ASEAN Taxonomy for Sustainable Finance and other capacity-building initiatives for green finance expertise in regional financial institutions are just a couple of the larger sustainable finance projects that Singapore actively supports and works on with ASEAN. By ensuring that sustainable financing frameworks are adapted to the region's varied economic settings and developmental stages, this partnership helps ASEAN achieve its common climate goals while safeguarding its need for cooperation and progress.

• Green Plan 2030 as an enabler: The sustainable financial ecosystem is directly supported and strengthened by the lofty goals outlined in the Singapore Green Plan 2030 (as explained in Part 1). The Green Plan builds a robust pipeline of investable green projects by pledging to deeply decarbonise industries, transportation, and energy. This covers investments in energy-efficient building modifications, sustainable transportation options, the creation of a circular economy, and renewable energy infrastructure (such as solar and hydrogen pilots). Singapore is a desirable place for green finance innovation and investment because of its strong policy commitment, which creates market demand and regulatory certainty.

VI. A Highly educated and adaptable workforce: The engine of innovation

Human capital is Singapore's most important asset. The main force behind innovation and economic change is a highly educated, talented, and flexible workforce that has been developed through decades of deliberate investment in education and lifelong learning.

• Strength of the education system: With strong performance in PISA ratings, where Singaporean children frequently rank highly in mathematics, science, and reading, Singapore's educational system is regularly considered among the finest in the world. Its demanding curriculum, concentration on STEM (science, technology, engineering, and mathematics) subjects, and varied post-secondary environment are its main advantages.

• Vocational and technical education: High-quality vocational and technical training is offered by Institutes of Technical Education (ITE) and Polytechnics, giving students skills relevant to the industry and guaranteeing a consistent supply of qualified technicians and associates that are essential for an economy driven by manufacturing and services.

• Universities and research: Universities that consistently rank in the top 20 to 30 worldwide in QS/THE rankings, such as Nanyang Technological University and the National University of Singapore, are driving innovative research and producing highly skilled graduates for knowledge-intensive industries.

• SkillsFuture: Empowering lifelong learning: The SkillsFuture movement is a nationwide endeavour to encourage Singaporeans to take ownership of their skills development throughout their life. Among its many platforms and incentives is SkillsFuture Credit, which gives people credits to defray the cost of authorised courses. Over 600,000 Singaporeans have taken part in SkillsFuture projects by 2024 (SkillsFuture Singapore, or SSG), demonstrating a broad dedication to lifelong learning.

• Programmes for workforce transformation: SkillsFuture provides a variety of programs designed to meet the demands of the future economy. For instance, the SkillsFuture Career Transition Programme (SCTP) offers mid-career individuals modular training courses to help them reskill and move into high-growth industries including advanced manufacturing, healthcare, and infocomm technology. The workforce can proactively adjust to automation, AI, and the changing needs of the gig economy thanks to these initiatives. As discussed in Part 1, the Job Transformation Maps (JTMs) help people and organisations with their upskilling initiatives by identifying the precise job positions and skills required for the future.

• Adaptability to the future of work: Singapore is intensively training its workforce for the significant changes brought about by automation and artificial intelligence. Launched in 2023, the National AI Strategy 2.0 (NAIS 2.0) seeks to incorporate AI into all major economic sectors, including manufacturing, financial services, logistics, and healthcare. It is anticipated that this approach will result in the creation of new, higher-value jobs while necessitating a substantial upskilling and reskilling of current positions. According to government estimates, AI could boost Singapore's GDP by up to S$20 billion by 2030 (Smart Nation SG), underscoring the necessity of workforce preparedness and AI adoption from an economic standpoint. Additionally, the focus on lifelong learning gives workers the flexibility to take on a variety of projects and flexible work schedules, which helps them manage the gig economy.

• Addressing challenges for a robust workforce:

• Mental health support: Initiatives to assist the mental health of workers and students are in place in recognition of the strains of a demanding academic and economic environment. This ensures a more resilient and healthy workforce through improved peer support programs, workplace mental wellness initiatives, and school-based therapy.

• Equitable access to education: For needy students from basic to tertiary levels, the Ministry of Education (MOE) offers significant financial assistance programs (such as ComCare and the MOE Financial Assistance Scheme) to guarantee that socioeconomic background does not restrict educational prospects. Scholarships and bursaries support Singapore's meritocratic talent pipeline by enabling gifted people to pursue further education and realise their potential, irrespective of their family's financial situation.

VII. Conclusion of Part 2 

Singapore has a strong foundation for managing future uncertainties thanks to its enduring qualities, which include its non-aligned foreign policy, vibrant financial hubs (fintech and family offices), unshakeable governance, leadership in sustainable finance, and highly adaptable workforce. These are dynamic resources that have been refined over decades of strategic planning and practical adaptation. They give Singapore the fortitude to withstand shocks, the adaptability to grasp new opportunities, and the legitimacy to shape international opinion. However, securing its spot on the SG100 and genuinely reimagining its future necessitates a comprehensive, systemic rethinking of its economic and societal models, which goes beyond simply utilising its current assets.

In order to address demographic issues, embrace technology advancements, and solidify Singapore's position as a responsible global citizen in an increasingly linked world, Part 3 will examine the significant systemic changes required to restructure the country's economy for sustainability.

- End of Part 2 -

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