Singapore’s Quantum Tech Sector Faces Potential Setback as US Restrictions Target China
Singapore’s thriving quantum technology sector could face collateral damage due to the Biden administration’s restrictions aimed at denying China an advantage in key technological areas. While Singapore is currently leading quantum computing in Southeast Asia, concerns have been raised that the recent ban on certain US investments in China, particularly in semiconductors, microelectronics, AI, and quantum information tech, may hinder Singapore’s progress in this field.
The White House stated that the restrictions are intended to prevent foreign countries from exploiting US investment in critical technologies that could pose risks to US national security. While experts believe that the immediate impact on Singapore’s quantum technology sector may be limited, there are concerns that the restrictive measures may hamper the future growth of this emerging industry.
Dimitris Angelakis, founder of Angel Quantum Computing and an associate professor at the National University of Singapore, expressed concerns that certain quantum startups in Singapore that had previously received Chinese backing could be caught in the crossfire between China and the United States. Additionally, the acquisition of quantum hardware for experimental purposes may face challenges. Angelakis emphasized the importance of open innovation and maintaining free and uncontrolled communication to sustain the progress of Singapore’s quantum ecosystem.
Despite potential setbacks, Singapore’s quantum technology sector has made significant strides with ample funding from both public and private sectors. The industry’s innovation inputs contributed to Singapore’s top ranking in the 2022 Global Innovation Index for the third consecutive year. Singapore has an opportunity to position itself as a quantum hub not only for Southeast Asia but also for larger Asian tech players such as Japan, India, and South Korea if it can navigate the geopolitical landscape skillfully.
Tommaso Demarie, CEO of Singapore-based quantum optimization company Entropica Labs, emphasized the need for Singapore to strengthen its local ecosystem, foster know-how, and develop quantum technologies internally in light of the restrictions. While the immediate impact may not be apparent, concerns among analysts regarding the potential consequences of the restrictions on hi-tech innovation are valid.
There is ongoing debate about the potential costs and effectiveness of the US strategy of technological decoupling. Experts warn that restrictive tools may be costly to domestic innovators and may not effectively address the perceived threats. China has criticized the US for politicizing business engagement and warned that restricting investments in hi-tech sectors would harm not just China but also the global business community.
In order for Singapore to maintain its momentum in the quantum tech sector, it will be crucial to strike a balance between national security concerns and fostering innovation. By nurturing its local ecosystem and building strategic partnerships, Singapore can play a key role in serving as a trusted partner for countries caught in the technology race between superpowers.
