Singapore attracts US$9.3B in AI funding, outpacing Southeast Asian peers

SINGAPORE: Singapore has attracted about US$9.3 billion (S$11.9 billion) in disclosed equity funding across 227 funding rounds as of July 2026, outpacing Southeast Asian Native AI companies in Vietnam (US$19 million), Malaysia (US$8 million), Indonesia (US$6 million) and Thailand (US$4 million), Eco-Business reported, citing a report from market intelligence platform Tracxn.

Tracxn said the huge gap in AI funding reflects differences in institutional and growth-stage funding access, rather than AI innovation alone, as venture capital networks, later-stage funding and participation by global investors remain at different stages across the region.

Still, Singapore’s funding lead does not necessarily mean it is where most of Southeast Asia’s AI development is happening, Tracxn said, adding that some companies set up their businesses here to gain access to investors and regional business networks while developing products and serving customers elsewhere in the region.

The huge amount of AI funding concentrated here is more about where companies choose to raise capital, rather than where AI innovation is happening, it added.

Across Southeast Asia, annual funding for Native AI companies jumped from US$869 million across 35 deals in 2024 to US$2 billion across 41 deals in 2025.

In fact, in just the first seven months of the year, companies had already raised US$4.1 billion through 23 rounds, more than double the amount raised throughout 2025. Tracxn said about 67% of the cumulative equity funding had been raised since the start of last year.

Also, unlike 2024, when funding was largely focused on younger startups in their early stages, investors have been putting more money into more established companies since 2025. As of July, late-stage funding had reached US$3.5 billion, more than double last year’s US$1.3 billion, suggesting investors are putting more money into fewer companies that have already gained commercial traction and are looking to expand.

It is worth noting, however, that much of this year’s funding surge came from a single deal — Kling AI’s US$2.8 billion Series D funding, which accounted for about 68% of Southeast Asia’s Native AI funding through July, according to Tracxn.

Looking ahead, the market intelligence platform noted that investors are increasingly looking at companies developing AI infrastructure, enterprise AI platforms and applications as businesses move towards commercial expansion.

Meanwhile, Singapore is likely to remain Southeast Asia’s main fundraising hub even as more investment “gradually” flows into other markets in the region. /TISG

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