Speech by Minister-in-charge of Energy and Science & Technology in the Ministry of Trade and Industry Dr Tan See Leng at MTI Committee of Supply Debate 2026

“Powering sustainable economic growth through AI and innovation” 

Preamble 

A1.             Mr Chairman, as DPM has highlighted, the rules that allowed Singapore to prosper have fundamentally changed. 

a.      Technologies, especially AI, are rapidly disrupting industries. 

b.      Climate change continues to accelerate, and its impact is affecting our way of life. 

A2.             Now, how do we therefore, seize opportunities in spite of all these challenges? 

a.      We will leverage science and technology to establish leadership in key growth sectors and push the frontier into new growth areas. 

b.      We will also strive to establish Singapore as an AI leader, transforming our advanced manufacturing industry. 

A3.             Powering these efforts, at the core, is energy, which must be sustainable, secure, reliable and affordable. 

Establish leadership in key growth sectors and push the frontier into new growth areas 

Extend our lead in advanced manufacturing 

B1.             To extend our lead in advanced manufacturing, we will continue to direct national-level R&D resources towards our key growth sectors. 

B2.             Our Research, Innovation and Enterprise, or RIE, 2025 investments have boosted the R&D capability and capacity of our economy and created good jobs. 

a.      For manufacturing, the annual private sector R&D expenditure in 2023 was $4.3 billion – which is a 54% increase from 2016. 

b.      Industry R&D jobs grew by 36% between 2016 and 2023 to more than 30,000 – of which more than 70% were filled by locals.

Semiconductors 

B3.             One key growth sector is semiconductors. We have built strong R&D capabilities through past RIE investments, and we have anchored a total of more than $30 billion in investments from semiconductor companies, over the past four years.

RIE Flagship in Semiconductors 

B4.             We will further invest $800 million to establish the RIE Flagship in Semiconductors, focusing on high-impact technology areas such as Advanced Packaging and Advanced Photonics, which boost chip performance while cutting power use. 

B5.             The Flagship will translate research into products and encourage more advanced R&D and manufacturing activities, creating good jobs in Singapore.

National Semiconductor Translation and Innovation Centre (Power Electronics) 

B6.             The Flagship will also bring together efforts under the National Semiconductor Translation and Innovation Centre, or NSTIC. 

B7.             Since its launch in RIE2025, NSTIC (Advanced Photonics) has achieved several breakthroughs, including in high-speed data transmission and metalens fabrication. 

a.      It has since attracted over 10 industry partners and has built a strong commercialisation pipeline. 

B8.             Last year, DPM announced our investment in NSTIC (R&D Fab), our semiconductor R&D fabrication facility. 

a.      It is on track to commence operations by 2027, and companies have shown strong interest in the facility’s collaboration space. 

B9.             We will also invest $60 million in NSTIC (Power Electronics) to strengthen Singapore’s competitiveness in next-generation power electronics. 

a.      Within a year, we aim to double the carrier mobility of silicon carbide technologies, enabling the potential development of smaller, more efficient power systems. Use cases include extending the driving ranges of electric vehicles.

Biomedical 

B10.         Another key growth sector is biomedical, which remains robust in spite of its inherent volatility. 

B11.         To boost sector growth, we announced two R&D translational platforms in 2024 – namely Nucleic Acid Therapeutics Initiative (or NATi) and MedTech Catapult. 

a.      These platforms are attracting global partners, uplifting local enterprises, and training talents to anchor high-value R&D activities and jobs in Singapore.q 

b.      For example, MedTech Catapult is working with a local startup – Vivo Surgical – to develop its verification prototype to be ready for clinical studies, and has onboarded the company onto its venture acceleration programme. 

B12.         Given the good progress of these platforms, we intend to scale them further under RIE2030.

Private Sector R&D 

B13.         Besides public sector efforts, the private sector also plays a crucial role in our innovation ecosystem.

Research and Innovation Scheme for Companies 

B14.         Through our Research and Innovation Scheme for Companies, or RIS(C), we have attracted substantive private research and innovation investments, building capabilities and creating high-value jobs for locals. 

a.      In the past five years, companies have (i) committed more than $14 billion to research and innovation investments here; and (ii) created more than 12,000 jobs in research, development, and innovation roles – with locals filling more than 70% of these positions. 

b.       Grab's Artificial Intelligence Centre of Excellence has hired around 50 people, while Evonik, the German chemicals giant, has hired over 100 researchers for its Asia Research Hub in Singapore. 

B15.         Building on this, we will invest more than $3 billion in RIS(C) in RIE2030. 

Move early to pursue opportunities in emerging growth sectors

Space Technology 

B16.         Beyond existing growth sectors, we will boldly pursue emerging technologies that can drive breakthroughs across our economy. 

B17.         One example is space technology, the “final frontier” which  is rapidly moving from science fiction to real-world applications. 

B18.         Space technology is already used in our daily lives – powering navigation and connectivity. 

B19.         As technologies advance and costs fall, smaller countries like Singapore can capture opportunities in the growing space economy. 

a.      This can create good jobs for Singaporeans in areas such as engineering and data science, while enabling businesses to capture value from space-enabled services and applications. 

b.      One such opportunity is space-based Earth observation, which can be used in industries such as maritime, sustainability and finance. 

c.      A local startup, Arkadiah Technology, is using satellite data in its partnership with a global agribusiness company – Golden Agri-Resources – to support digital measurement, reporting and verification. This enables more accurate carbon accounting of tropical forests. 

B20.         To advance our ambitions, we will be establishing the National Space Agency of Singapore, or NSAS, which I announced last month. 

a.      From the initial 30 officers from the Office for Space Technology & Industry (or OSTIn), NSAS is expected to double in size over the next three years. 

B21.         As we develop our growth sectors, we will continue to partner firms to equip Singaporeans with in-demand and emerging skills. 

Establish Singapore as an AI leader, with an AI-empowered economy 

C1.            Earlier, DPM shared our vision to establish Singapore as an AI leader, with an AI-empowered economy, through the development and execution of AI Missions across four priority sectors. 

C2.            One priority sector is Advanced Manufacturing. We will work with industry partners to further develop the AI Missions and we will provide an update later. These preliminarily will be anchored on three thrusts.

Advanced Manufacturing AI Thrusts

C3.            First, we will leverage AI and robotics to transform our manufacturing facilities to achieve best-in-class outcomes that can become more agile, resilient, and efficient. 

C4.            Second, we will harness AI to create first-in-world solutions, by enhancing product designs and accelerating development cycles. 

C5.            Third, we will drive broad-based sectoral transformation, by helping companies adopt AI in key operations to accelerate the deployment of solutions across the ecosystem.

Advanced Manufacturing AI Mission: Two Key Enablers 

C6.            To support these efforts, we will strengthen two key enablers.

Sectoral AI Centre of Excellence in Manufacturing 

C7.            First, A*STAR’s Sectoral AI Centre of Excellence in Manufacturing, or AIMfg. 

a.      Launched one and a half years ago, AIMfg has supported close to 30 firms in developing and adopting AI-enabled solutions. 

b.      For example, Sunningdale – a large local manufacturer of precision-engineered plastic components – is partnering AIMfg to develop an AI-powered defect detection system. Early trials are promising, with expected annual cost savings of more than $150,000 for each product. 

c.      AIMfg has also developed a set of common AI models that address typical business needs, such as a predictive maintenance model for rotary devices.

This reduces resources and time needed to develop custom solutions from scratch. 

d.      Moving forward, AIMfg will further drive AI-led transformation with partners and expand the suite of common AI models.

Embodied AI 

C8.            Second, we will build capabilities in Embodied AI. 

a.      Embodied AI brings AI into our physical world – robots that can sense their surroundings, that can reason independently, and they can act with purpose in unfamiliar environments. 

b.      We will invest in R&D to address complex problems faced by our companies, and we provide shared infrastructure for researchers and companies to test new Embodied AI technologies. Such infrastructure can accelerate deployment of technologies in frontier sectors, which is something Associate Professor Kenneth Goh talked about. 

c.      We will begin with the Advanced Manufacturing, Aviation, and Maritime sectors. This can seed a new growth area, by attracting next-generation Embodied AI startups, as well as grooming local champions. 

C9.            To fully unlock AI’s potential for businesses, we will also contemporaneously build an AI-ready workforce through education and training, and support companies in job redesign and workforce transformation. I will elaborate more on these efforts in my MOM speech tomorrow. 

Energy transition for a low-carbon future, while securing energy resilience 

D1.            Mr Chairman, given these shifts, our economy is becoming more digital and innovation-driven. 

D2.            As pointed out by Ms Tin Pei Ling and Mr Edward Chia, energy powers all these efforts. For our economy and our way of life, energy is existential.

a.      As demand grows and as we decarbonise, the Government will continue to strike a pragmatic balance between energy sustainability, security, and affordability. 

b.      Decarbonisation will come with costs, but it cannot and will not be at all costs. 

c.      Let me illustrate this using an example, which will also address Ms Nadia Samdin’s earlier question on carbon tax. We will regularly review the transitory allowances – which only cover a portion of companies’ emissions – to strike the right balance between (i) maintaining a price signal to encourage investments in low-carbon solutions and (ii) managing the rising costs. 

D3.            As we pursue a diversified portfolio of renewable energy pathways, we will also focus on scalable and cost-effective solutions.

Solar 

D4.            As with Singapore’s Water Story, we will first prioritise pathways that support our self-sufficiency and resilience, by maximising our indigenous sources. 

D5.            Solar remains our most viable option in the near-term. 

a.      We have made remarkable progress. Last year, we reached our 2030 target of 2 gigawatt-peak (GWp) of installed solar capacity – 5 years ahead of schedule. 

b.      We are therefore raising the target to 3 GWp – an increase of 50% – by 2030, and aspire to double last year’s achievement within the second half of 2030s. 

D6.            However, even with widespread deployment, solar will only supply – at best – about 10% of our future electricity demand, due to land constraints and climate conditions. 

a.      So, while solar is important, it is insufficient. This is why we are currently studying our geothermal resource potential.

Low-Carbon Alternatives 

D7.            Besides indigenous sources, we are also pursuing other low-carbon pathways. 

D8.            Electricity imports from the region can diversify and decarbonise our energy mix. 

a.      To date, we have awarded around 8.4 gigawatts (GW) of Conditional Approvals to promising projects. Of which, 3 GW have advanced to Conditional Licences. We are working closely with project developers to secure the necessary regulatory approvals to commence construction soon. 

b.      Through close collaboration and cooperation with our neighbours – and they are essential – as we strive towards our regional vision of the ASEAN Power grid, our first wave of electricity import projects will probably come from Indonesia and Peninsular Malaysia. To prepare for imports from Indonesia, we have identified suitable subsea cable connection routes and landing sites. 

c.      We are also conducting a full feasibility study on a second interconnector between Singapore and Malaysia. If this is developed, this could provide up to 2 GW of bilateral interconnection capacity – on top of the 1 GW of capacity from our existing interconnector. 

D9.            Beyond this, we are also exploring other low-carbon solutions. As I have said before in this House, no option is off the table. 

D10.        First, we are exploring biomethane as a viable low-carbon fuel through a regulatory sandbox of up to 300 megawatts (MW). 

a.      Its compatibility with existing infrastructure minimises the need for costly asset upgrades. 

b.      Since last year, we have seen strong industry interest. We are currently evaluating proposals for the sandbox, and we expect to appoint demand-supply aggregators soon. 

D11.        Second, we are studying the potential of low-carbon hydrogen, including its derivatives, or its carriers, such as ammonia. 

a.      Last October, we appointed a consortium led by Keppel to conduct Front-End Engineering Design (FEED) studies for the next phase of the ammonia pilot project for power generation and bunkering. 

D12.        Third, we are also studying the potential of carbon capture, utilisation, and storage (CCUS) solutions to decarbonise hard-to-abate sectors. 

a.      We will continue working with countries that have suitable geological sites for carbon storage – such as Australia, Indonesia and Malaysia – on bilateral agreements to offer the private sector greater investment certainty. 

b.      We are also studying ways to store captured carbon permanently in products such as building materials.

D13.        Based on the results, we will assess how these pathways can be scaled up, the type of mix possible, to achieve our decarbonisation ambitions. 

D14.        Now, let us be realistic. Even as we pursue these options, we must remain clear-eyed about their inherent challenges. 

a.      Imported electricity comes with significant geopolitical risks and uncertainties. 

b.      Other low-carbon solutions are not yet ready for deployment at scale, either due to technological nascency or under-developed supply chains.

Nuclear Energy 

D15.        Thus, while we have not made a decision, we are seriously studying the potential deployment of advanced nuclear energy technologies, such as small modular reactors. 

a.      Nuclear energy has the potential to be a safe, reliable, and cost-competitive option. Its high fuel density is especially attractive for land-scarce Singapore. Five one-inch-tall uranium pellets – each smaller than my thumb – can generate the same amount of energy as one Olympic-sized swimming pool of natural gas. 

b.      We are intensifying our capability building, especially in nuclear safety and technology assessment. We will do so in line with the International Atomic Energy Agency (IAEA) Milestones Approach, and partner international leaders such as the United States, France, and the Republic of Korea. 

                                                              i.      In fact, just this morning, the Energy Market Authority, or EMA, signed a Memorandum of Understanding (MOU) with the Korea Hydro and Nuclear Power Company, which operates South Korea’s entire fleet of 26 nuclear energy reactors, on the sidelines of the President of the Republic of Korea’s visit to Singapore. 

c.      Public trust will be essential. We will work closely with partners on raising awareness for not just nuclear, but more fundamentally, the existential nature of energy.

Grid Reliability and Resilience 

D16.        As Mr Edward Chia and Mr Ng Shi Xuan have pointed out, we must ensure the continued reliability of our grid, as Singapore moves to a heterogeneous energy mix. 

a.      Last year, EMA and SP Group launched the Future Grid Capabilities Roadmap to set clear directions for capability building in areas such as system inertia and flexibility technologies. 

b.      EMA is also piloting a Virtual Power Plant (VPP) regulatory sandbox with industry partners, and assessing whether more energy storage systems are required, to address challenges such as intermittency.

Science & Technology as the Key Enabler 

D17.        Underpinning all these efforts is science and technology as the key enabler. 

D18.        We are launching a new $800 million Decarbonisation Grand Challenge under RIE2030, in support of our 2035 abatement targets and 2050 net-zero ambitions. 

a.      Building on past efforts, we are significantly increasing investments in promising solutions to (i) reduce power sector and industry emissions; and, at the same time, to (ii) ensure a reliable and resilient power system. 

D19.        Under this Grand Challenge, we are launching a new programme – Singapore Pilots for Energy & Enterprise Decarbonisation (SPEED) – to support local translational Research, Development and Demonstration (RD&D) activities and catalyse private investments, to scale up promising yet nascent technologies. 

Conclusion 

E1.             Mr Chairman, innovation and technology will continue to push and propel Singapore to greater heights and will continue to create good jobs for generations to come. 

E2.             As DPM pointed out earlier, we are a climate realist. As we strive towards our net-zero ambition, we have to constantly remain mindful of the challenges, such as geographical constraints and rising decarbonisation costs to businesses and households. 

E3.             That said, we will do our utmost to secure a clean and green future, because this is for our future generation, with a stable and reliable flow of energy – which is existential for our economy and our way of life. 

E4.             Thank you.