SINGAPORE Trends and Developments Contributed by: Terence Quek, Benjamin Cheong and Favian Tan, Rajah & Tann Singapore LLP
agement, focusing on those relating to governance and oversight, key risk management systems and processes, and the development and deployment of AI; • in June 2025, MAS clarified the applicable scope for its digital token service providers (DTSPs) regime, stating that DTSPs that are based in Sin- gapore but serve customers exclusively outside of Singapore must obtain a licence from MAS; • the Singapore Payments Network was incorporat- ed in June 2025 to administer and govern national payment schemes, aiming for the next stage of growth and efficiency in the payments sector; and • the Protection from Scams Act 2025 came into force, empowering police to issue restriction orders on the bank accounts of scam victims to prevent further financial losses. Moving forward, continued consolidation in pay- ments and compliance tech may be expected, with more selective investment into digital asset market infrastructure. Policy momentum around national pay- ments governance, scam resilience, and tokenisation is likely to sustain Singapore’s position as the region’s most M&A-friendly fintech hub. Conclusion The tech M&A environment in 2026 is poised to be more selective rather than expansionary. Globally, deal-makers will continue to balance expectation with tempered volume, as tariff volatility, geopolitical fric- tions and uneven regional growth keep investment risk levels elevated.
In the Asia-Pacific region, sentiment remains cau- tious, but targeted fiscal stimulus in the PRC and a pivot towards strategic, capability-driven transactions should underpin activity in technology, digital infra- structure and financial services. Singapore is set to sustain a steady inflow of capital as a safe-harbour headquarters hub, with mid-sized transactions leading the market amid a scarcity of megadeals. AI-led deal-making is expected to deep- en, both through the acquisition of data, analytics and automation assets and through the deployment of AI tools across diligence and integration, supported by Singapore’s robust governance frameworks and pro- innovation policy stance. Digital infrastructure, par- ticularly data centres, is expected to remain a focal point for platform consolidation and sustainability- linked capacity expansion. In fintech, continued con- solidation of payments, compliance technology and tokenisation infrastructure is expected, guided by clearer regulatory guardrails. Overall, it is hoped that 2026 will favour well-capi- talised acquirers executing strategic and thesis-led transactions in resilient sectors, with Singapore retain- ing its role as the region’s most reliable launchpad for AI, cloud and fintech M&A.
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