Budget 2024: New fund for future energy investments, with initial S$5 billion injection

SINGAPORE will set up a Future Energy Fund with an initial injection of S$5 billion for investments in new energy initiatives.

“Significant effort and costs” are needed for Singapore to move from a system powered mostly by natural gas, to one powered largely by clean energy, said Finance Minister Lawrence Wong in his Budget speech on Friday (Feb 16).

This transition has a “massive” scale and must be done in the next two decade or so, which is “not a lot of time”, he added.

That is where the new fund comes in, he said. “This will give us the confidence to invest in good time, put us in a better position to move quickly on critical infrastructure, and enhance our security in clean energy.”

For instance, to import low-carbon electricity, Singapore must invest in submarine cables and upgrade its power grid. Such costly investments cannot be done by the private sector alone, and will need catalytic funding from the government, he said.

Another investment for Singapore’s resilience is a new National Cybersecurity Command Centre, to strengthen the Republic’s cyberdefence capabilities.

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Located at the Punggol Digital District, the new centre is aimed to better coordinate cyberdefence operations, improve collaboration with industry and academia, and spur innovation in cybersecurity.

For more of BT’s Budget 2024 coverage, go to bt.sg/budget24