KPMG: Financing in Singapore’s cryptocurrency sector will decrease by 86% year-on-year in 2023, but the number of transactions will be the largest

A report recently released by KPMG shows that despite a decline in global investment activity, financing for artificial intelligence companies focusing on financial technology in Singapore has increased. In the second half of 2023, the financing volume of this segment in Singapore exceeded US$333 million, an increase of 77% from US$148 million in the first half of the same year. There were a total of 24 investment transactions in Singapore’s artificial intelligence financial technology companies throughout the year. In 2023, the total financing amount of Singapore's financial technology industry was US$2.2 billion, a 68% decrease from the previous year; the number of transactions during the same period also dropped by half to 189. The report pointed out that high interest rates, persistent inflation and geopolitical factors were the main factors leading to the decline in investment activity. In addition, investment and financing in the country’s cryptocurrency and insurtech sectors also declined, with year-on-year decreases of 86% and 25% respectively. Still, cryptocurrencies remain top of mind for investors in Singapore’s fintech sector, with the sector recording the highest number of transactions last year. (Tech in Asia)