Singapore jumps from 16th to 4th in global startup rankings in five years

A $37b innovation push backs corporate venturing in chips, AI, and healthcare.

Singapore has climbed to fourth place globally in startup ecosystem rankings in 2025, up from 16th in 2020, as the country positions itself as a platform for corporate venturing across advanced manufacturing, artificial intelligence and healthcare, according to a new report by global management consultancy Arthur D. Little and the Singapore Economic Development Board.

The report, titled Singapore As A Global Platform For Corporate Venturing, said Singapore's innovation environment offers corporations faster collaboration timelines, lower regulatory uncertainty and reduced regional complexity, whilst serving as a gateway to both regional and global startups.

The country is ranked the most popular regional headquarters destination in Asia.

Public investment in research and innovation under Singapore's Research, Innovation and Enterprise 2030 framework has been a key driver of the ecosystem's development.

Funding under the framework is set to increase from $28b in the 2021 to 2025 period to approximately $37b in the 2026 to 2030 period, with a growing emphasis on commercialisation through programmes that help turn research into startups capable of working directly with corporations.

Semiconductors

Singapore's semiconductor ecosystem spans fabrication, equipment manufacturing, applied research and university-industry collaboration. The report said proximity to operating fabrication facilities allows startups to test solutions against real yield, reliability and throughput constraints rather than simulated environments, shortening validation cycles and strengthening industrial credibility.

Applied research infrastructure includes A*STAR's Institute of Microelectronics, which supports advanced packaging and chiplet architectures, and the Institute of Materials Research and Engineering, which focuses on materials science and nanofabrication. Advanced Micro Foundry, now part of GlobalFoundries, provides speciality fabrication and prototyping access.

The report cited semiconductor manufacturer GlobalFoundries as an example of corporate venturing in action. Faced with a labour-intensive and error-prone wafer defect classification process, GlobalFoundries co-developed a machine learning solution with Singapore-founded startup SixSense, combining defect image recognition with wafer-map analysis.

Following deployment, the solution achieved more than 90% defect classification automation, improved accuracy by around 50% and increased tool utilisation by approximately 15%. The system was subsequently scaled from Singapore to GlobalFoundries' global operations.

AI and the digital economy

Singapore's approach to AI is focused on deployment rather than the development of large frontier models. The report said the country's goal is to serve as a trusted hub where companies and researchers can develop, test and deploy AI solutions in a coordinated and commercially relevant manner.

In 2026, the government committed more than $1b under the National AI Research and Development Plan to strengthen foundational and applied AI capabilities and build a pipeline of deployment-ready talent.

Major technology companies have established a significant presence. OpenAI set up its Asia-Pacific base in Singapore in 2024. Microsoft launched its first Southeast Asia AI research lab last year, whilst AWS established an Asia-Pacific Innovation Hub focused on AI and cloud adoption. More than 60 companies have established AI centres of excellence in Singapore.

Structured partnerships have enabled real-world AI deployment. Changi Airport Group partnered with autonomous driving startup UISEE to deploy driverless baggage-handling tractors between terminals and aircraft stands.

ComfortDelGro and Grab partnered with Pony.ai and WeRide respectively to pilot driverless passenger shuttle buses in Punggol, a residential township of more than 200,000 residents.

Healthcare and biomedical sciences

Singapore hosts more than 80 regional headquarters, 60 manufacturing plants and 30 research and development centres for global pharmaceutical and biotechnology companies. Biomedical manufacturing output reached $38.1b in 2023, with output growing 16.3% from 2024 to 2025.

The report said Singapore's Health Sciences Authority holds WHO Maturity Level 4 status, reflecting internationally recognised regulatory standards.

Research institutions including Duke-NUS Medical School and A*STAR's Biomedical Research Council support translational research across therapeutics, diagnostics, digital health and precision medicine in close alignment with hospital systems.

Johnson & Johnson's JLABS Singapore, launched in 2023, was cited as an example of structured corporate venturing in the sector.

As of December 2025, it has supported 50 companies, with those companies raising $1.55b since joining.