Singapore Business Hub — 2026-06-01

Today's Top Stories

AI Startups Capture a Third of Singapore's Shrinking VC Market in 2025

• What happened: Singapore venture funding fell to $4.6 billion across 472 deals in 2025—a 34% drop in deal value and 35% decline in deal volume versus 2024—yet AI-focused startups raised approximately S$1.8 billion ($1.4 billion), representing nearly one-third of all venture capital deployed in the city-state.
• Who's involved: Singapore-based AI startups, institutional venture investors, and deep tech founders competing in a selective funding environment where investors demand higher returns and greater traction before writing checks.
• Why it matters: The bifurcation reveals that Singapore's startup ecosystem is consolidating around defensible, capital-efficient sectors. Founders in non-AI verticals face tougher fundraising conditions, but the AI cluster's strength positions Singapore as a credible deep tech hub despite broader market contraction. Policymakers may need to address the "commercialization gap" for non-AI startups to sustain inclusive growth.

1 sources

dealstreetasia.com

AI investments made up a third of Singapore venture funding in 2025

Singapore Upgrades 2026 Export Forecast as Electronics Shipments Surge

• What happened: Enterprise Singapore (EnterpriseSG) raised its non-oil domestic exports (NODX) forecast for 2026 from 2–4% to 3–5%, citing robust Q1 2026 electronics shipment performance as a key driver of the upgrade.
• Who's involved: Enterprise Singapore, the Ministry of Trade and Industry (MTI), and electronics manufacturers benefiting from regional semiconductor demand recovery.
• Why it matters: This upgrade signals confidence in Singapore's ability to weather external tariff headwinds that previously depressed non-electronics exports. The electronics rebound suggests global tech supply chains are stabilizing and demand is recovering, which could translate into higher-margin export revenues and corporate profitability in the second half of 2026.

Private Banking Sector Races to Cut Client Onboarding to Under One Month

• What happened: The Private Banking Industry Group (PBIG) in Singapore committed to reducing private banking client onboarding times to under one month by the end of 2026, a significant acceleration from current multi-month timelines that have deterred ultra-high-net-worth individuals from Singapore-based institutions.
• Who's involved: Singapore private banks, wealth managers, and the PBIG industry collective driving digital operational efficiency.
• Why it matters: Faster onboarding is critical to competing with offshore fintech wealth platforms and rival financial centers. This signals that legacy Singapore private banks recognize they must modernize digitally to retain and attract high-net-worth clients, reflecting broader pressure on traditional banking to accelerate fintech adoption.

Startup & Funding Pulse

No new startup-specific funding rounds were disclosed in the past 7 days with sufficient detail for inclusion. The most recent funding data confirms 2025 year-end trends (AI dominance, overall contraction) rather than reporting fresh 2026 deployment announcements.

Markets & Corporate Moves

• Singapore Economy — Growth Forecast Maintained: The Ministry of Trade and Industry maintained Singapore's 2026 GDP growth forecast at 2–4%, despite noting that "downside risks have risen significantly" due to geopolitical tensions involving the US, Israel, and Iran. This signals caution despite strong Q1 2025 economic data.

Fintech, Policy & Regulation

• Singapore Private Banking Digital Transformation: The PBIG's commitment to sub-30-day onboarding represents a major shift in operational policy for Singapore's wealth management sector. The target reflects both regulatory expectations for efficient KYC/AML processes and competitive pressure from digital-native platforms. Achieving this will require API integration, automated document processing, and enhanced compliance workflows.

Regional Context (SEA Connections)

• Singapore's Fintech Funding Lead in ASEAN: Singapore surpassed regional peers with US$319 million in fintech funding, reinforcing its position as Southeast Asia's premier digital finance hub. High adult banking penetration (over 98%) and a decade of progressive MAS regulation have created the infrastructure for cross-border payments and digital asset innovation—advantages that extend Singapore's influence across the region.

What to Watch Next

• June 2026 Electronics Orders Data: Expect manufacturing PMI and export orders data in early-to-mid June, which will confirm whether Q1's electronics rebound is sustainable or a temporary uptick.
• H1 2026 Startup Funding Announcements: Watch for Series A/B rounds in June–July to gauge whether the AI concentration persists or if other deep tech verticals (biotech, advanced manufacturing) attract fresh capital.
• PBIG Onboarding Progress Reports: Track quarterly updates from Singapore private banks on KYC/AML automation spending and time-to-client metrics as they race toward the December 2026 target.

Reader Action Items

• Founders in Non-AI Sectors: If you're fundraising in 2026 outside AI/deep tech, expect higher bar for unit economics and path to profitability. Consider pivoting to AI-adjacent applications or partnering with AI teams to improve traction narratives.
• Investors and Corporate Strategists: The 3–5% NODX upgrade and electronics momentum suggest selective opportunities in semiconductor supply chain, logistics, and precision manufacturing. Q2/Q3 earnings revisions for export-heavy companies may present tactical entry points if tariff fears ease.
• Wealth Managers and Fintechs: The PBIG's onboarding pledge signals that legacy banks will invest heavily in digital infrastructure. Fintechs offering white-label KYC, API-first account opening, or cross-border payment rails may find new partnership or M&A interest from Singapore-based institutions.

Quick Hits

• H&M Singapore Layoffs & Malaysia HQ Shift: H&M announced regional restructuring with staff reductions in Singapore and a shift of regional headquarters to Malaysia, reflecting cost pressures in the apparel sector.

• AI Investment Concentration: Among Singapore's 472 venture deals in 2025, AI startups' S$1.8B take-up reveals a "winner-take-most" dynamic in early-stage capital allocation.

• MTI 2026 GDP Outlook: Holding the 2–4% forecast despite elevated geopolitical risk suggests the government views Singapore's financial services and tech sectors as relatively insulated from external shocks.

• Fintech News SG Coverage: Latest reports confirm Amazon's commitment to US$33 billion in Southeast Asia AI/cloud infrastructure by 2039, underpinning regional demand for Singapore-based fintech and data services.

Editorial Note: This signal reflects verified news from the past 7 days (after 2026-05-25). Insufficient fresh funding announcements were available to populate a full "Startup & Funding Pulse" section; readers are encouraged to monitor DealStreetAsia and Fintech News SG for June deal flow.