28 September–4 October 2026 Roundup: Fusion Energy, ASEAN Power Grid, Future Trade and Semiconductor Talent

Singapore’s latest moves point to a longer-horizon economic strategy. The country is building capabilities in technologies and infrastructure that may take years to mature, from fusion energy and a more integrated ASEAN electricity market to digital trade systems and advanced semiconductor manufacturing.

The common thread is capability before scale. Singapore does not need to build the first commercial fusion reactor to participate in the fusion economy, nor manufacture every component of the semiconductor value chain. Instead, it is positioning research institutions, companies, workers and regional partnerships around specialised areas where Singapore can contribute and capture value. The same logic applies to trade: deepen market access, digitise transactions and build the skills businesses need to navigate a more fragmented global economy.

Singapore Is Exploring a Role in the Fusion Economy Before Commercial Fusion Arrives

Singapore is beginning to position itself for the fusion economy even though a commercial fusion power plant may still be years away. Fusion generates energy by combining atomic nuclei rather than splitting them, and recent progress in areas such as superconducting magnets, plasma confinement and experimental net energy gain has increased commercial interest. The global fusion ecosystem is forecast to reach US$419.84 billion by the end of this decade.

Singapore’s immediate opportunity is not necessarily to build a reactor. It is to participate in the technologies and supply chains around fusion. NTU and France’s CEA established the Singapore Alliance with France for Fusion Energy in 2023. A*STAR has developed plasma-diagnostic technology with Realta Fusion, is collaborating with Commonwealth Fusion Systems, and is exploring work with VDL Enabling Technologies on advanced materials, manufacturing and diagnostics. ST Engineering is already producing tokamak components for Commonwealth’s SPARC demonstration reactor.

This is a useful innovation-financing signal. Singapore is building research, engineering, talent and industrial capability before the market is mature. Companies working in advanced materials, precision engineering, plasma technologies, diagnostics and adjacent deep-tech fields should therefore watch fusion not only as a future energy source, but as an emerging R&D and commercialisation ecosystem.

Source: https://www.meti.gov.sg/newsroom/opening-remarks-by-minister-for-energy--trade-and-industry--energy-and-industry--dr-tan-see-leng-at-fusionx-apac-2026/

Singapore Takes a Mobilisation Role in the ASEAN Power Grid

The ASEAN Power Grid is the region’s long-term effort to connect national electricity systems so power can move more efficiently across borders. A more integrated grid can allow countries with abundant renewable resources to supply markets where clean energy is harder or more expensive to produce, while improving energy security and system resilience across Southeast Asia.

The investment requirement is substantial. The World Bank estimates that achieving the ASEAN Power Grid vision by 2045 will require around US$800 billion in generation and transmission investment. The challenge is therefore not only engineering. Projects need to move from political agreement and feasibility work into bankable investments that can attract public, private and climate finance.

Singapore’s role is increasingly about mobilisation. Its partnership with the World Bank Group builds on the ASEAN Power Grid Financing Initiative, which is designed to develop project pipelines, provide technical assistance and help mobilise financing through instruments such as guarantees, concessional loans, blended finance and credit enhancement. For Singapore, regional electricity connectivity also supports its own energy strategy by creating pathways to import low-carbon electricity from neighbouring markets.

Source: https://isomer-user-content.by.gov.sg/1004/8119f6b2-75ab-48d8-ab6f-a126d6340798/For%20Immediate%20Reporting_Singapore%20and%20the%20World%20Bank%20Group%20launch%20ASEAN%20Power%20Grid%20Mobilisation.pdf

Singapore Is Building More Routes for Businesses to Trade Through Disruption

Singapore’s response to a more fragmented trading environment has three practical components: diversify market access, use technology to reduce trade friction, and strengthen the workforce capabilities needed to operate across increasingly complex markets.

On market access, Singapore is expanding beyond established trade relationships. FTAs with the Pacific Alliance and MERCOSUR are opening routes into Latin America, while Singapore is negotiating an FTA with Bangladesh and exploring one with the East African Community. It is also strengthening supply-chain resilience through arrangements such as the Agreement on Trade in Essential Supplies with New Zealand and the Protocol on Economic Security and Essential Supplies with Australia.

The digital layer is becoming equally important. SBF’s Trade AI Advisor, supported by Enterprise Singapore, helps companies navigate Singapore’s 29 FTAs. The new BizSG portal is intended to become a digital concierge for SMEs, beginning with recommendations on relevant grants based on business needs and plans. Singapore is also pushing paperless trade through Digital Economy Agreements and the ASEAN Digital Economy Framework Agreement. For businesses expanding overseas, the direction is clear: market-access support is increasingly being combined with digital tools, interoperable trade systems and structured internationalisation capability.

Source: https://www.meti.gov.sg/newsroom/speech-by-minister-in-charge-of-trade-relations-grace-fu-at-the-future-of-trade-forum-/

AST Shows What Singapore Wants From a New Semiconductor Investment

Advanced Substrate Technologies’ new facility is Singapore’s first to manufacture high-end flip-chip ball grid array substrates and Toppan’s first such facility outside Japan. These substrates connect chips with each other and with wider electronic systems, adding a specialised capability to Singapore’s semiconductor ecosystem.

What the Government wants from AST goes beyond production volume. AST plans to conduct R&D in Singapore, bringing research and manufacturing together so engineers can use factory-floor experience to improve products and processes and eventually develop future generations of substrate technology here. The Government is also encouraging AST to collaborate with Singapore research institutions and local suppliers on production challenges.

The local capability dimension is equally explicit. AST will create more than 330 jobs, including engineering and skilled technician positions, and has signed an MOU with ITE covering structured internships and hands-on training. This is a useful template for companies considering Singapore incentives: an investment becomes more strategically valuable when it adds a difficult-to-replicate capability, conducts R&D locally, develops suppliers and creates pathways for Singaporeans to build specialised skills.

Source: https://www.meti.gov.sg/newsroom/remarks-by-deputy-prime-minister-and-minister-for-trade-and-industry--trade--gan-kim-yong-at-the-advanced-substrate-technologies--ast--new-facility-opening-ceremony/

VSMC’s GRIT Participation Shows How Government Salary Support Can Build a Semiconductor Talent Pipeline

VSMC’s new semiconductor fab illustrates how major investments can combine physical capacity with government-backed workforce support. The company is creating roles for engineers, chemists and data scientists and has signed seven MOUs with polytechnics and universities covering internships, graduate hiring, curriculum development, mentorship and applied research.

One particularly practical mechanism is the GRaduate Industry Traineeships programme, or GRIT. VSMC plans to scale its GRIT intake for engineering roles to 15 hires. Under the programme, traineeships generally run for three to six months with monthly allowances of S$1,800 to S$2,400. The Government funds 70 per cent of the traineeship allowance, leaving the host organisation to fund the remaining 30 per cent. That means the maximum S$2,400 monthly allowance carries up to S$1,680 of government support per trainee per month.

For a six-month traineeship at the maximum allowance, that equates to up to S$10,080 of government-funded allowance per trainee. Across 15 trainees, the indicative maximum government contribution would be S$151,200 if every placement ran for six months at S$2,400. This is an estimate based on published GRIT parameters, not a disclosed VSMC grant amount. The broader lesson is that Singapore’s support for strategic investments can extend beyond capital expenditure into structured manpower pathways that reduce the cost of building new talent pipelines.

Source: https://www.meti.gov.sg/newsroom/remarks-by-minister-for-trade-and-industry--energy-and-industry--dr-tan-see-leng-at-vsmc-grand-opening-ceremony/

Closing Perspective

This week’s developments show Singapore investing in optionality. Fusion may not supply Singapore’s grid soon, but capabilities in plasma science, advanced manufacturing and diagnostics can create commercial value today. The ASEAN Power Grid is a long-term infrastructure project, but Singapore can already help mobilise finance and build the institutional architecture needed to move projects forward.

The same approach is visible in trade and semiconductors. Singapore is widening market access while digitising how businesses discover support and execute trade. AST and VSMC, meanwhile, show that attracting investment is only the starting point. The deeper objective is to anchor R&D, specialised production, supplier capability and talent development.

For businesses, this matters when designing projects for government support. The strongest proposition is rarely simply a request to subsidise expenditure. It is a credible plan to build a capability that helps the company grow while also strengthening an economic priority Singapore is actively investing in.

Businesses planning R&D, advanced manufacturing, energy innovation, internationalisation or workforce-development projects can approach Real Inbound Consulting to assess the grants, tax incentives and government support that may be relevant.