(Feb 18): Singapore plans to invest about S$1 billion (US$744.8 million or RM3.31 billion) for a new research and development semiconductor facility that will provide “great tools for researchers and industry partners” to boost innovation, according to Prime Minister Lawrence Wong.

The world’s top tech companies want to do more out of Singapore, Wong said in his first budget speech as the prime minister on Tuesday, including those new-frontier areas of artificial intelligence and quantum computing.

He also pledged to top up the Changi Airport development fund by S$5 billion, bolstering one of the key initiatives that supports the development and growth of the aviation industry in Singapore.

Singapore needs to make major investments in energy and infrastructure, and he will top up the Future Energy Fund by S$5 billion, the prime minister said. In his budget speech a year ago, Wong said the city state was setting up S$5 billion to invest in clean energy technology, as it works towards net zero emissions by 2050.

“We will take further steps to systematically build up our capabilities in this area,” the prime minister said of nuclear energy.

Wong also said the government will introduce a new S$1 billion private credit fund to provide more financing options for high-growth local enterprises. 

He also mentioned tax incentives for fund managers who invest significantly in Singapore equities, as well as companies seeking to list in the nation. The measures were flagged by a government-led review group last week, and more details will be announced on Friday.

Wong said “there has been feedback that the Singapore stock exchange is not attractive even for companies focusing on Singapore and Southeast Asia”. 

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