By Joey Brillantes
THE FIRST HALF of 2025 laid bare the stark divergence in startup funding fortunes between Singapore and the Philippines, especially in the fintech sector. Singapore captured a dominating 92% share of Southeast Asia’s startup funding, attracting approximately $1.04 billion in financial technology (fintech) investments alone, while the Philippines garnered a fraction of that despite its growing digital economy. What lessons can the Philippines draw from Singapore’s success, and what concrete measures must it take to bridge this widening investment gap?
WHAT SINGAPORE IS DOING RIGHTSingapore’s fintech ascendancy is no accident. It is the result of a mature, sophisticated ecosystem that blends strong government support, deep capital markets, world-class infrastructure, and regulatory foresight. The country’s focus on cultivating late-stage startups with solid fundamentals appeals to cautious investors seeking capital-efficient, scalable businesses. Areas like payments, cryptocurrency, and artificial intelligence (AI)/machine learning (ML) fintech verticals have attracted the bulk of this investment, supported by consistent regulatory clarity and institutional initiatives.
Furthermore, Singapore’s strategic push to become a regional hub for enterprise infrastructure startups has bolstered its ability to attract substantial capital inflows. The Monetary Authority of Singapore’s proactive regulatory sandboxes and digital banking licenses have nurtured innovation while ensuring investor confidence and consumer protection. The presence of numerous venture capital funds and global investors accelerates deal flow and follow-on funding.
WHAT THE PHILIPPINES IS MISSINGThe Philippines, despite its rapid digitalization and vibrant startup culture, still lags due to a less mature investment ecosystem and regulatory uncertainties. While fintech remains the most active sector domestically, attracting significant deal flow, the funding quantum remains relatively small and fragmented. Challenges include limited late-stage funding options, less accessible venture capital, and regulatory frameworks that are evolving but still perceived as less predictable compared to Singapore.
Infrastructure gaps and lower institutional support for scaling startups also limit the Philippines’ ability to cultivate fintech firms that can compete regionally. The country’s fintech landscape is largely dominated by payments-focused startups, but it lacks sizable investments in emerging verticals like AI/ML or crypto that are gaining investor attention elsewhere.
Here are some steps the Philippines can take to level up:
1. Enhance regulatory clarity and innovation-friendly policies — The Bangko Sentral ng Pilipinas and other regulators must continue to develop clear, consistent fintech regulations, including improving sandbox initiatives that balance innovation with risk management. Simplifying licensing and compliance for fintech startups will reduce barriers to growth.
2. Expand late-stage funding channels — The Philippines should cultivate deeper pools of venture capital and private equity specifically oriented toward late-stage fintech investments to support startups in scaling confidently. Encouraging institutional investors and global funds to participate via incentives or matching schemes can increase deal size and valuation.
3. Strengthen startup infrastructure and ecosystem support — Building world-class innovation hubs, accelerator programs, and talent pipelines focused on fintech domains like AI, regulatory tech, and blockchain is key. The government and private sector partnerships can fund capacity building and encourage corporate-fintech collaboration.
4. Promote strategic partnerships and regional integration — Filipino fintechs should be encouraged to form cross-border alliances within ASEAN and beyond, tapping into larger markets and investor networks. ASEAN fintech collaboration frameworks supported by government agencies can facilitate such scaling efforts.
5. Focus on high-impact verticals — Beyond payments, Filipino fintech startups should diversify into emerging areas like digital lending, wealth tech, and cybersecurity solutions, aligning with global investor interests in AI-enabled financial services and sustainable fintech.
Singapore’s triumph in dominating Southeast Asia fintech funding in the first half of 2025 sends a clear message: strategic ecosystem building, investor confidence through transparency, and targeted innovation make all the difference. The Philippines, with its large population and increasing digital adoption, holds immense potential.
By addressing regulatory bottlenecks, expanding capital access, and intentionally investing in scalable fintech innovation, the country can elevate its position and attract the meaningful investments key to driving inclusive financial digital transformation.
Joey Brillantes is the founder and managing partner of public relations and digital marketing agency Integral Public Relations, Inc. The individuals, brands, nations, companies, organizations, agencies, and institutions mentioned in this commentary have no business relationship with his agency, nor are they competitors of its clients.
