Budget 2026: Singapore commits S$37 billion to RIE 2030 to anchor global supply chains

Singapore will invest S$37 billion under its Research, Innovation and Enterprise (RIE) 2030 plan, Prime Minister Lawrence Wong announced in Parliament on 12 February 2026 during his Budget 2026 speech.

The funding forms part of a refreshed economic strategy aimed at anchoring critical segments of global supply chains in Singapore and strengthening the Republic’s position in high-value industries.

Prime Minister Wong said the goal is for Singapore to be “the place where activities with high knowledge content and strong spillovers take place”, referring to economic activities that generate technological advancement and skills development across the wider economy.

The S$37 billion tranche, first announced by Senior Minister Lee Hsien Loong in December 2025, marks the Government’s largest injection into research and innovation since 1991.

It represents a 32 per cent increase from the S$28 billion allocated under the RIE 2025 plan and amounts to about 1 per cent of gross domestic product annually. Prime Minister Wong noted that the scale places Singapore on par with small advanced economies such as Sweden and Denmark.

He stressed that Singapore’s public research and development spending will remain modest in absolute terms compared with larger economies.

“That is why our investments must be disciplined, focused and strategic,” he said, adding that funding would be directed at areas where Singapore has clear strengths and can make a meaningful impact.

One key industry cited was semiconductors, particularly advanced packaging, which integrates multiple chips into a single package using highly precise manufacturing technologies.

Prime Minister Wong said Singapore began investing in advanced packaging more than 20 years ago, before it became a global priority. The sector has since gained momentum internationally.

Other established clusters identified as growth opportunities include aerospace and biomedical sciences, where earlier investments have yielded results.

“Technology is the critical enabler underpinning our strategy to build leadership in these clusters,” he said. “Singapore must be a place where frontier technologies are developed, tested, and commercialised.”

Emerging areas with potential for leadership include decarbonisation solutions and quantum technology, which harnesses the laws of quantum mechanics to develop new tools and computing capabilities.

Prime Minister Wong described quantum technology as an area where Singapore made “an early and deliberate bet”.

In 2007, the National University of Singapore established the Centre for Quantum Technologies at a time when much of the research remained theoretical. He said quantum computing is now moving rapidly towards real-world applications with far-reaching implications.

Singapore has attracted global players in the field, including quantum computing firm Quantinuum, which has established operations locally and will host its latest quantum computer in the Republic.

The installation, expected to be completed in 2026, will make Singapore the first country outside the United States to host Quantinuum’s most powerful system.

“This will give our researchers and companies, including a few home-grown start-ups, direct access to cutting-edge quantum compute and opportunities to work on meaningful projects,” Prime Minister Wong said.

He added that Singapore is also drawing leading talent and partnerships, including a quantum computing start-up co-founded by Nobel Laureate Professor John Martinis. The company is collaborating with local researchers to develop novel components to advance quantum computer performance using advanced semiconductor processes.

“They chose Singapore because of the unique combination of our strengths in advanced manufacturing, semiconductors and frontier quantum research,” he said.

Under the RIE 2030 plan, the largest share of funding — 29 per cent, or S$10.8 billion — will be allocated across four domains that remain unchanged from the previous plan.

These are human health and potential; manufacturing, trade and connectivity; urban solutions and sustainability; and smart nation and the digital economy.

Prime Minister Wong said that by building leadership in key growth areas, Singapore can shape where innovation and value creation occur globally, creating better jobs and opportunities for Singaporeans.