Looking Back: 2025 and Gazing Into: 2026
Looking Back: 2025
In 2025, Singapore’s legal and regulatory landscape was defined by five key trends: (i) accelerating the net-zero transition; (ii) enhancing artificial intelligence (“AI“) governance; (iii) deepening regional integration to address geopolitical challenges; (iv) strengthening capital market competitiveness; and (v) tightening anti-money laundering controls.
On climate, Singapore raised its 2035 emissions target to 45 – 50 million tonnes of carbon dioxide equivalent (“MtCO2e“) and recalibrated corporate reporting timelines to build capacity for high‑quality climate disclosures.
The Singapore Green Bond Framework, a key pillar of public sector efforts to achieve our net zero ambitions, was updated to align with the latest sustainable finance standards. This features Singapore’s updated efforts in sustainable development.
Southeast Asia needs an estimated US$1.5 trillion in investments by 2030 for a sustainable, net-zero transition.[1] The donor-advised fund was set up to attract capital from family offices and foundations for early-stage carbon project funding in Southeast Asia. Regional efforts are in place to help Association of Southeast Asian Nations (“ASEAN“) small and medium enterprises (“SMEs“) operating within global and local supply chains report on environmental, social, and governance (“ESG“) disclosures.
By 2025, Singapore has moved from “AI readiness” to sustained AI deployment and capability‑building, driven by robust government policy and significant investments. Singapore ensures safe and ethical AI use through “assurance-based, ecosystem-oriented regulation” that emphasises voluntary, testable, and internationally aligned tools instead of strict legal requirements. Among other things, the AI Verify Testing Framework and AI Markets Toolkit launched by the Competition and Consumer Commission of Singapore (“CCS“) and the Infocomm Media Development Authority (“IMDA“) help industry players evaluate their AI models or solutions to ensure safety and compliance.
Against a backdrop of heightened geopolitical tensions intensified by Trump-era tariffs and protectionist trade measures, Singapore and our regional partners have responded by deepening economic integration and broadening its network of trade agreements, both within the region and globally. In 2025, this approach was complemented by upgrading existing FTAs (AANZFTA, ATIGA, ACFTA 3.0) and launching a principles‑based coalition of small and medium economies (the FIT Partnership).
In February 2025, the Equities Market Review Group (“EMRG”) released the first tranche of reforms aimed at revitalising the equities market by improving both supply (quality listings) and demand (investor interest and liquidity). These principles were operationalised in October 2025 where the Singapore Exchange Securities Trading (“SGX-ST“) Mainboard Rules and Catalist Rules were revised to streamline the listing admission criteria and post-listing obligations, as well as adopt a more disclosure-based approach. At the same time, the Monetary Authority of Singapore (“MAS“) strengthened Singapore’s fixed-income sector by continuing the Global-Asia Bond Grant Scheme and introducing the Global-Asia Digital Bond Grant Scheme, broadening capital-raising opportunities.
Singapore’s position as a global financial and wealth‑management hub raises its exposure to sophisticated and cross‑border illicit finance risks. The anti-money laundering and countering of terrorism financing (“AML/CFT”) regime is tightened to ensure Singapore remains trusted by global regulators, counterparties and investors. The AML/CFT measures for financial institutions (“FIs”), variable capital companies (“VCCs”), real estate industry and digital token service providers were reviewed and enhanced in accordance with international standards.
Digital economy policy moved firmly into implementation, in particular concerning digitalisation of trade. Singapore and the European Union (“EU“) signed the EU‑Singapore Digital Trade Agreement, and Singapore and the European Free Trade Association (“EFTA“) States (Iceland, Liechtenstein, Norway, Switzerland) concluded and signed the EFTA‑Singapore Digital Economy Agreement. Both instruments set high‑standard rules for digital trade issues and will remove unnecessary barriers to end‑to‑end digital trade.
Other key legal and regulatory developments to note include:
- Changes to the cybersecurity regime to keep pace with emerging threat factors and operational practicalities;
- Launch of the Global Cross‑Border Privacy Rules (“CBPR“) certification, an internationally recognised data protection standard, with Singapore enabling certification locally;
- Singapore International Arbitration Centre (“SIAC“) takes a forward-looking approach in promoting arbitration as a dispute resolution mechanism by launching a protocol for restructuring proceedings, a world-first for an international arbitral institution;
- Raising sellers’ stamp duty to curb short-term private residential property transactions; and
Enactment of the Protection from Scams Act 2025 to better protect vulnerable targets of ongoing scams.
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[1] Southeast Asia’s Green Economy 2024 Report (by Dale Hardcastle, Yukiko Tsukamoto, Kimberly Tan, Tracy Wong Harris, Kyung-Ah Park, and Berakah Lee). Source: https://www.bain.com/insights/southeast-asias-green-economy-2024/
Gazing Into: 2026
Building on reforms and initiatives introduced in 2025, the legal developments to be expected in 2026 concern four key themes: (i) deeper integration of artificial intelligence (“AI“) into business and practices; (ii) stronger sustainability and carbon‑market infrastructure; (iii) further enhancements to the capital markets framework to boost competitiveness; (iv) enhanced social, corporate and digital governance.
Two years on from the launch of the National AI Strategy 2.0, a significant portion of the Singapore workforce has attained AI literacy. The Government’s focus now is to uplift capabilities towards AI fluency—the advanced, effective and ethical application of AI for real‑world impact. The financial sector is at the forefront of AI adoption and innovation. Complementing the Government’s AI fluency agenda, the Monetary Authority of Singapore (“MAS“) introduced the Financial AI Builder Programme, BuildFin.ai, which offers a collaborative platform for developing innovative solutions for the financial sector within a well-regulated environment. This transition is supported by the publication of the “AI Risk Management: Executive Handbook” which guides financial institutions (“FIs“) on implementing AI Risk Management in their organisations.
The second Data Centre – Call for Application is underway to facilitate the growth of data centres (“DCs“) that, among other things, enhance Singapore’s position as a reputable hub for AI and DC investments and accelerate the adoption of green energy.
Sustainability policy is now focused on implementation. Due to local renewable energy limitations, Singapore is increasing its participation in international carbon markets under Article 6 of the Paris Agreement. The following developments will inform the Government’s initiatives to support our decarbonisation goals.
- Development of cross‑border renewable energy certificate (“REC”) frameworks that will assist Southeast Asian countries to standardise their approaches for the tracking and accounting of cross-border RECs;
- New Government grants to support carbon market participation by FIs;
- Increased funding for driving clean energy transition across Southeast Asia;
- Exploration of nuclear energy capability building; and
- Operationalisation of bilateral implementation agreements on eligible carbon crediting programmes (e.g. pursuant to the Singapore-Thailand Implementation Agreement).
At the same time, sustainability policy is increasingly integrated with trade and investment strategies, notably through the negotiation of Green Economy Partnership Agreement (“GEPA“) which aims to support trade and investment in green sectors. Sustainable Aviation Fuel (“SAF“) levies will be introduced to reduce the carbon footprint of the aviation sector.
For a more detailed write-up on the initiatives shaping Singapore’s climate policy and their impact on a Singapore business and investor, please click here for our publication titled “Reflecting on Singapore’s 2025 Climate Policy Package: Reshaping Rules for Value Creation, Capital Access & Competitiveness”.
Capital markets reform is another key theme shaping the outlook for 2026 and beyond. Following the release of the final report of the Equities Market Review Group (“EMRG“) in November 2025, Singapore is expected to see increased market activity as reforms are operationalised. Key anticipated developments include:
- Streamlining the listing review process for listing applications to the Singapore Exchange Securities Trading Limited (“SGX-ST“) Mainboard to reduce uncertainty of the process and time to markets;
- Boosting investors’ confidence in Singapore’s capital markets by strengthening investor recourse avenues in market misconduct cases;
- Allowing retail investors to access private market investment funds through authorised long-term investment funds with appropriate safeguards;
- Dual listing bridge connecting SGX and Nasdaq; and
- Extending SGX-ST secondary listing framework to Chinese A-share companies, etc.
2026 will also see continued progress in social, corporate and digital governance.
- Social governance: Works are underway to operationalise the Workplace Fairness Legislation which will establish a unified statutory framework addressing workplace discrimination;
- Corporate governance: Amendments to the Singapore Code on Take‑overs and Mergers have been proposed to strengthen shareholder protection. Modifications aimed at improving the competition framework within the media sector are also being considered; and
- Digital Governance: A new Online Safety Commission will be established to deliver timely relief to victims of online harms.
Other key developments that will influence 2026 and beyond include:
- Enhancements to the licensing framework for cybersecurity service providers, with new requirements for the licensees to obtain and maintain specified certifications;
- Proposed Quantum-Safe Handbook and Quantum Readiness Index to guide organisations in preparing for the transition of their cryptographic assets and systems to quantum-safe solutions;
- Electronic payment solutions to support the phasing out of corporate cheques from 2026;
- Proposed enhancements to the patents, trademarks, registered designs, plant varieties and geographical indications regimes; and
- Review of the corporate debt restructuring and insolvency regime to attract more international users.
Full Report
Click on the link below for the full report which provides summaries of the key legal developments related to the above areas.
- Regional Round-Up 2025: Singapore
Please note that whilst the information in this Update is correct to the best of our knowledge and belief at the time of writing, it is only intended to provide a general guide to the subject matter and should not be treated as a substitute for specific professional advice
