Singapore vs Philippines in startup funding: lessons for fintech growth

THE FIRST HALF of 2025 laid bare the stark divergence in startup funding fortunes between Singapore and the Philippines, especially in the fintech sector.

- Joey Brillantes

Singapore captured a dominating 92% share of Southeast Asia’s startup funding attracting approximately $1.04 billion in financial technology (fintech) investments alone, while the Philippines garnered a fraction of that despite its growing digital economy. What lessons can the Philippines draw from Singapore’s success, and what concrete measures must it take to bridge this widening investment gap?

WHAT SINGAPORE IS DOING RIGHT

Singapore’s fintech ascendancy is no accident. It is the result of a mature, sophisticated ecosystem that blends strong government support, deep capital markets, world-class infrastructure, and regulatory foresight. The country’s focus on cultivating late-stage startups with solid fundamentals appeals to cautious investors seeking capital-efficient, scalable businesses. Areas like payments, cryptocurrency, and artificial intelligence (AI)/machine learning (ML) fintech verticals have attracted the bulk of this investment, supported by consistent regulatory clarity and institutional initiatives.

Furthermore, Singapore’s strategic push to become a regional hub for enterprise infrastructure startups has bolstered its ability to attract substantial capital inflows. The Monetary Authority of Singapore’s proactive regulatory sandboxes and digital banking licenses have nurtured innovation while ensuring investor confidence and consumer protection. The presence of numerous venture capital funds and global investors accelerates deal flow and follow-on funding.