The department of Governance & Economy at the Institute of Policy Studies (IPS) organised four closed-door discussions (CDDs) to contribute to the efforts of the Singapore Economic Resilience Taskforce and the Economic Strategic Review between 3 and 11 February 2026.
The CDDs sought to provide key insights from business leaders of Singapore-based small and medium enterprises on the existing and emerging challenges to business development as well as ideas and opportunities to overcome them.
Read the full report here.
Session Information
Closed-Door Discussion One: Entrepreneurship
3rd February 2026
Government spending on economic development was S$22.4 billion in FY2024, which included funding for a wide range of initiatives to support new and existing businesses, research and development activities and innovation. In Budget 2025 alone, it committed to a new S$1 billion Private Credit Growth Fund and a S$200 million long-term investment fund that offers alternative financing and long-term capital to high-potential, local enterprises.
Despite strong government support and what is reputed to be a thriving startup ecosystem, several challenges to entrepreneurship are said to persist, particularly in areas like commercialising deep tech, attracting and retaining specialised talent, and a gender bias for women entrepreneurs. Other issues that are often raised include the overemphasis on specific high-growth sectors which crowds out other promising ventures; difficulties in accessing suitable financing for certain types of firms; and still inadequate support for internationalisation.
Participants were invited to share their views on the key barriers to a robust entrepreneurial culture, the translation of innovation and ideas into marketable products and services, and growing markets for Singapore SMEs.
Closed-Door Discussion Two: Singapore-Based SME Development
5th February 2026
Singapore’s small and medium enterprises (SMEs) form the bulk of the business community in the country and employ a large majority of Singapore workers. Over the years, many Singapore SME brands have become global names.
Development challenges for Singapore-based SMEs are said to include financing for early-stage and growth-stage companies; finding motivated and skilled workers at the scale needed; supporting digitalisation; and transitioning to sustainable business practices. There are also gaps in succession planning among the more successful enterprises, and a need for better data and coordination to evaluate existing business strategies and to anticipate the future.
While there has been a great deal of support by the government for local promising firms scale up, and adopt trends in sustainability, digitalisation and artificial intelligence, what gaps exist and remain? What are the key barriers to greater SME success as they anticipate global economic trends? What are some new imperatives or aspirations Singapore SMEs as a community have or want to work towards?
This discussion drew participants to share their views on the foregoing, and to talk about what more the community can do to support itself as well as to integrate itself more closely to international businesses based here. They were invited to share their views on the digital economy and other factors that can help them scale up to become heavy hitters in their respective sectors and beyond Singapore’s shores even in the midst of changing global conditions.
Closed-Door Discussion Three: Innovation
9th February 2026
Looking to ride the next wave of innovation, the Singapore government has committed S$37 billion from 2026 to 2031 to fund research and development (R&D) activities, which is equivalent to 1 per cent of the country's GDP annually.
Singapore’s innovation system has relied heavily on multinational corporations (MNCs) as well as government-funded programmes and institutions for their research and development activities. While this model has been successful historically, the question remains as to how research investments and capabilities can be improved, and processes of translating innovation into marketable goods and services can be strengthened within the Singapore SME sector. Perhaps fresh thinking can be brought to bear on the connections across the three sectors as well.
In new and rapidly evolving sectors, such as AI, fintech, energy, biopharma and so on, regulatory guidance and consistent policy frameworks can facilitate greater business investment and innovation. This meeting focused on drawing out views on these issues.
Closed Door Discussion Four: Startups
11th February 2026
Singapore's start-up landscape is strong — ranking fourth globally. It is facilitated by its pro-business environment, strong government support and a strategic location that acts as a gateway to Southeast Asia. The ecosystem includes over 4,500 active startups, more than 510 investors and 220 incubators/accelerators. Key strengths here are its access to top talent, world-class infrastructure and robust support from initiatives like Startup SG. Government support, ease of doing business, and a focus on deep tech areas like AI and FinTech also attract significant global investment.
Despite this, Singapore's start-up ecosystem is said to face policy and market gaps relating to talent acquisition, late-stage funding, limited market size and risk-averse mindsets. Policy gaps in Singapore's start-up ecosystem include a need for more growth-stage capital, stronger support for scaling overseas, and more skilled talent, particularly in specialised areas like deep tech. Public sector procurement policies do not always build confidence for startups, and there is a gap in fostering the right mindset to celebrate entrepreneurial success and the value of equity over short-term salary.
In this discussion, participants were invited to share what is needed to embed the start-up culture more firmly in Singapore society and facilitate the successful progression of start-ups into viable enterprises that become world-beaters in their respective sectors. Would it be resources, policy frameworks, culture, financing, talent or the presence of powerful intermediaries — incubators, venture capitalists or physical infrastructure — that would make the difference?