Singapore has championed AI as the next frontier of its economic growth ambitions for some years now, having recently announced a $1 billion investment into artificial intelligence (AI) over the next five years to bolster compute infrastructure, develop talent, and encourage industry partnerships.
While such investments are decisive statements in and of themselves, the broader observation is that Singapore’s competitive advantage, particularly in high-value services, depends fundamentally on a reliable, high-performance network foundation. AI can only deliver on its promise if it is built upon a robust digital infrastructure, and right now, network reliability is emerging as a critical weak link.
This shift reflects a fundamental change in the digital economy, where network integrity and performance have transitioned from operational utility managed by IT departments to a primary source of systemic financial and regulatory risk that should, and must, sit in the C-suite agenda.
The cost of failure is staggering. Studies estimate that for Singapore’s critical financial services sector, the industry collectively loses US$2.2 million ($2.84 million) for each hour of downtime. Furthermore, network reliability now sits alongside cybersecurity and AI as a top area of investment for businesses, a reflection of the growing recognition that a resilient network is necessary for Singapore to achieve its digital ambitions.
Network unreliability a structural impediment to digital ambition
Singapore's economy thrives on digital efficiency, but insufficient network resilience has become the chief vulnerability, a weak link in the chain.
See also: Singapore's Affinidi pilots verifiable credentials to cut cross-border hiring delays
Recent real-world failures have proven connectivity to be a matter of national and political stability. Significant service disruptions within the financial sector have led to hefty penalties in the form of both fines and operational restrictions levied by the authorities, for example. This underscores that network integrity is no longer a simple operational concern, but instead a major regulatory and stability risk.
This risk is magnified for the small and medium-sized enterprises (SMEs) that form the backbone of the economy. While a major financial institution can absorb a significant capital charge, a similar-scale outage could pose a critical, even existential, business risk for a smaller digital-native business in fintech or e-commerce.
Infrastructural limitations can also create a direct headwind against national strategic goals. The large-scale data processing and model training required for AI innovation demand specialised, high-capacity networks. Without robust and reliable digital infrastructure, the $1 billion national AI investment may not achieve its expected potential.
See also: Retail in Asia moves in real time. Your data should too
Connectivity as competitive currency
In high-value sectors, competitive advantages are increasingly defined by connectivity, measured not just by uptime, but by speed, consistency, and resilience.
For Singapore’s role as a leading global financial hub, low-latency networking is a non-negotiable imperative. In high-frequency trading, even microsecond delays, or jitter, translate directly into failed transactions and a loss of market position. This reliance on speed and consistency means the nation’s core digital infrastructure is a critical factor in maintaining this competitive edge.
Today, Singapore is one of the leading submarine cable hubs in the world, currently connected to twenty-six cables via seven landing stations, with plans to double this capacity within the next decade. Considering that over 99% of international telecommunications traffic relies on these subsea cables, this infrastructure is a strategic national asset that requires diligent management and continuous investment to maintain its currency.
Beyond finance, resilient connectivity is a critical element of economic diplomacy and a trade necessity.
Consider the strategic significance of the Johor-Singapore Special Economic Zone (JS-SEZ). Its success hinges entirely on leveraging Singapore's global connectivity and ensuring seamless, guaranteed cross-border Wide Area Network (WAN) infrastructure. Connectivity is not just about connecting Singapore internally; it is about extending our digital reach and trade capabilities into the region and the world.
Securing the resilience dividend
To stay ahead of the latest tech trends, click here for DigitalEdge Section
To secure Singapore’s position in the next era of global competition, the C-suite must recognise that securing a high-performance, resilient digital foundation is the indispensable insurance policy for all other digital investments, including AI and expansion.
Businesses must elevate connectivity to the same level of importance as talent and innovation. This means moving beyond basic Service Level Agreements (SLAs) to actively measuring, monitoring, and managing network performance with the same rigour applied to cybersecurity. It also requires collaboration between public and private sectors to ensure that digital infrastructure keeps pace with the complex, evolving needs of the enterprise.
In a world where AI, automation, and data define growth, the quality of a nation’s connectivity will increasingly define its competitiveness. Singapore has long excelled at anticipating change – and ensuring its networks are ready for the next era will be the foundation of its continued success.
Eric Wong is the president for Apac at Expereo
