Singapore’s real startup problem is not funding

Singapore’s recent expansion of the Research, Innovation and Enterprise (RIE) 2030 plan to S$37 billion has been praised, but critics argue the policy still overlooks the real challenge for startups: commercialization. While Singapore ranks among the world’s top economies in research inputs—such as patents, R&D spending, and technical talent—it underperforms in converting research into globally scaled businesses. The issue is structural: most Singaporean startups focus on the small domestic market instead of expanding regionally or globally early on. Historical success stories, like past large companies, grew by targeting broader markets from their first product, not just Singapore. Data from CB Insights shows that 70% of failed startups since 2023 ran out of capital, but deeper analysis reveals the real failures stem from poor product-market fit (45%), bad timing (29%), and unsustainable business models (19%). Only 5% failed due to technological flaws, while 42% lacked market need entirely. The median failed company had raised $11 million, with an average of $48 million, proving money alone isn’t the solution. The current RIE 2030 framework prioritizes research over commercialization, but experts like Chris Chen, founder of Future 500, argue that more funding for research won’t fix the problem. Instead, Singapore should allocate resources to operator-led commercialization infrastructure, such as overseas market-access programs, distributor networks in Asia, and structured support to help founders find global customers. Singapore has already produced founders who scaled globally without heavy government support, but the existing infrastructure doesn’t cater to their growth paths. With S$37 billion now committed, the question remains whether the next decade will continue focusing on research output or finally invest in the tools needed to turn ideas into globally competitive businesses.