Over the past five years, Singapore’s digital economy has expanded at nearly double the rate of the overall economy. This remarkable growth stems not only from advancements in information and communications but also from the extensive digitalisation occurring in finance, trade, and manufacturing. Enterprise digitalisation has become a standard practice, with 94% of companies and more than 80% of small and medium-sized enterprises utilising at least one digital solution.
Singapore is currently implementing its second AI strategy, intensifying its focus on AI applications in key sectors such as travel, cargo, and finance, while also investing in capabilities and fostering adoption. As reported by IMA, 44% of large enterprises are currently implementing AI solutions.
Policy innovation has also kept pace. Singapore has advanced in online safety, established shared responsibility for digitally-enabled scams, and embraced experimental approaches such as regulatory sandboxes. Together, these measures illustrate Singapore’s determination to remain a trusted and connected digital hub.
Against this backdrop, the Tech for Good Institute (TFGI), in partnership with the Singapore Management University – Centre for Digital Law (SMU CDL), convened a roundtable discussion on 25 August 2025 titled “Fit-for-Purpose Governance in the Innovation Age: Spotlight on Singapore.” The session explored how Singapore’s governance frameworks must evolve to remain fit-for-purpose. Key topics discussed included redefining sovereign foundations in the innovation age, balancing competition and cooperation in regional digital governance, and preparing for the opportunities and risks of frontier technologies such as agentic AI and quantum computing.
The roundtable also marked the final stop in the launch series for the second edition of TFGI’s regional report, The Evolution of Tech Governance in Southeast Asia-6. At the event, we shared highlights of major policy developments and governance approaches in 2024 across Indonesia, Malaysia, Singapore, the Philippines, Thailand, and Vietnam. We also discussed notable developments from the first half of 2025, with a particular emphasis on Singapore.
Key Takeaways
1. Redefining sovereignty in the innovation age is essential for resilience and trust.
Digital sovereignty refers to the ability of a nation to shape its own digital destiny, from data to infrastructure to emerging technologies. The meaning of digital sovereignty is shifting across languages, cultures, and political contexts. In six leading digital economies of Southeast Asia (SEA-6), governments are experimenting with “sovereign AI models”, such as Singapore’s SEA-LION (Southeast Asian Languages in One Network), Thailand’s Typhoon, Indonesia’s Sahabat-AI, and Malaysia’s ILMU. These initiatives seek to preserve multilingual needs and cultural identity while reducing reliance on foreign providers.
Participants noted that these efforts reveal both opportunities and risks. Some view sovereign AI as a more affordable alternative to expensive international subscriptions. However, challenges related to limited linguistic coverage, resource intensity, and the potential of “AI nationalism” raise questions about sustainability and cohesion.
The discussion highlighted Singapore’s approach, which seeks to anchor sovereignty in the rule of law. Rather than mandating localisation, it proactively exports governance frameworks on AI, cybersecurity, and online safety to shape global standards. This positions Singapore as an assured and trusted partner, balancing openness for innovation with safeguards that enhance resilience.
2. Balancing cooperation and competition in regional digital governance is vital for sustainable growth.
A recurring theme was the balance between competition and collaboration in Southeast Asia’s digital governance. The Tech for Good Institute’s research suggests that for Southeast Asia to advance as a unified region, a coordinated and collaborative approach is paramount, with ASEAN playing a crucial role. Yet national priorities often lead to competition for talent, capital, and investment, creating a risk of a “race to the bottom” in regulatory standards.
Singapore’s digital leadership stems not from scale, but from credibility. By setting the tone early through regulatory sandboxes, partnerships, and exporting frameworks, Singapore has helped shape norms that reduce compliance costs and reinforce trust across borders. To amplify this influence, Singapore should continue to work with other nations to push for open standards and collective impact.
At the same time, participants noted the need to balance global ambition with domestic priorities to maintain regional engagement.
3. Frontier technologies demand agile and forward-looking governance.
The roundtable also highlighted frontier technologies such as agentic AI and quantum security as critical emerging policy areas for the coming years.
Regarding agentic AI, a key question revolves around the future of its governance frameworks, particularly as these AI systems gain the ability to act independently and make decisions alongside humans. This evolution will necessitate updates to existing AI governance frameworks. Notably, the term “agentic” is not yet prevalent in the current AI governance frameworks of SEA-6 countries, indicating an emerging area of focus.
Quantum security presents a distinct set of challenges. Experts anticipate that advanced decryption capabilities will emerge within the next decade, potentially undermining today’s encryption standards. This makes it imperative for governments to integrate quantum safety into their cybersecurity policies now to avoid being unprepared.
More broadly, participants noted a persistent “evidence gap” surrounding digital transformation, questioning who truly benefits, how costs such as environmental impact are factored in, and whether the promised gains materialise. Addressing these uncertainties will require stronger collaboration between industry and government to quantify and showcase the tangible benefits of digital transformation and demonstrate the advantages of innovation.
The roundtable highlighted that fit-for-purpose governance will be essential for Singapore to balance innovation with resilience, ensuring its frameworks remain a trusted reference point for Southeast Asia’s digital future.