More support needed for Singapore’s start-up ecosystem: Dinesh Vasu Dash
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The research team from SUTD working together on the wasp, a nested, reconfigurable, logistics robot.
PHOTO: THE BUSINESS TIMES
SINGAPORE – Singapore needs to sustain its attractiveness to start-ups, talent and capital amid rising competition from other start-up hubs, Minister of State for Manpower Dinesh Vasu Dash said during the Budget debate
The entrepreneurial ecosystem is in a good place, but it needs to be strengthened in the next phase of Singapore’s economic journey, he added.
Mr Dinesh co-chairs the committee on entrepreneurship under the Economic Strategy Review, launched in August 2025
Singapore’s start-up ecosystem is ranked fourth in the world
But more needs to be done, Mr Dinesh said, echoing comments during the debate by other MPs, who said local start-ups and small enterprises need more support to grow.
One key area, he said, is strengthening the entrepreneurial culture, especially from a younger age.
He added that initiatives such as applied learning programmes in schools and industry-led programmes allow students to test their entrepreneurial mettle and experience setbacks and challenges first-hand.
“We can also support our entrepreneurs in more tangible ways and encourage entrepreneurship across all ages,” he said.
This could be in the form of entrepreneurship communities and start-up spaces that allow people to collaborate, learn from one another and develop ideas in a supportive environment. These could be open to groups of all ages, including mid-career workers and seniors.
Such communities can give budding entrepreneurs the confidence to start, Mr Dinesh said.
“While new technology products and services are disrupting traditional industries, it is also not uncommon to see start-ups with the right product or idea to achieve phenomenal success,” he said.
For promising growth-stage start-ups ready to venture overseas, he added that more support could be given to help them expand beyond Singapore.
These start-ups may need to raise funds for research and development, infrastructure, hiring and sales, but many of them speak of difficulties in accessing fund-raising options in the growth and pre-public stages, Mr Dinesh said.
He welcomed the $1 billion top-up to the Start-Up SG equity scheme
A new growth capital workgroup
During the debate on Feb 25, Nominated MP Azhar Othman also called on the Government to help local companies grow internationally.
He suggested providing a grant to trade associations and chambers and small and medium-sized enterprises to fund regular business missions so that companies can explore overseas opportunities.
It is vital for businesses to look beyond Singapore’s shores and establish a presence in various regions, he said.
Mr Liang Eng Hwa (Bukit Panjang) said external markets are essential not only for revenue expansion, but also for diversification and resilience.
“Encouraging and supporting enterprises to internationalise has long been a cornerstone of Singapore’s economic strategy,” he said.
He suggested that the Government identify and signal markets with strong, long-term potential for businesses, particularly those where Singapore enjoys strong bilateral ties. Regulators from the Republic can also work with their counterparts in other countries to align regulatory frameworks so firms can face reduced market entry barriers when they enter those markets, he added.
Mr Liang said trade associations and chambers can help Singapore companies go international collectively, sharing market intelligence and pooling resources. Larger companies with overseas networks can also act as “queen bees”, helping to anchor smaller companies in the ecosystem.
Mr Dinesh said more will be done to facilitate exits and the recycling of capital.
“Many successful founders want the opportunity to exit and to reinvest their time, talent and capital into new ventures. Thus, if we want a sustainable and dynamic ecosystem, we must ensure that capital is available for promising companies to exit at fair valuations and for early investors to recycle their capital,” he said.
Measures have been taken to boost the local equities market, such as a second $1.5 billion tranche
Mr Dinesh also noted that another $1.5 billion was announced as a top-up to the Equity Market Development Programme
“We hope that these efforts will allow Singapore to nurture the next generation of budding entrepreneurs,” he said.
