The initiative was announced by Deputy Prime Minister and Minister for Trade and Industry Gan Kim Yong at the opening of the Singapore International Water Week on Tuesday.

For the semiconductor industry, the funding will support the development of cost-effective water treatment and recycling technologies. In the data center sector, efforts will focus on improving water efficiency without compromising energy performance.

The 12-million-SGD allocation forms part of nearly SGD97 million in funding provided to Singapore's national water agency PUB by the National Research Foundation under the Research, Innovation and Enterprise (RIE) 2030 plan. The remaining SGD85 million will be invested in advanced urban water solutions, complementing the SGD74 million committed under the earlier RIE 2025 program.

Speaking at the event, Gan said Singapore, the world's second-richest country by GDP per capita in 2025 according to The Economist, aims not only to meet its domestic water needs but also to develop solutions that can be applied by cities and industries worldwide. Helping businesses reduce, reuse and recycle water more efficiently, he said, would support economic growth while advancing environmental sustainability.

The initiative comes as major technology companies continue expanding their operations in Singapore, including US memory chip maker Micron Technology and semiconductor equipment supplier Applied Materials.

PUB said it will collaborate with universities, research institutes, industry associations, technology providers and end users to research, test and deploy new water technologies.

During this year's Singapore International Water Week, the agency will sign two memoranda of understanding to establish innovation alliances for industrial water solutions in the semiconductor and data center sectors. Industry associations will first identify key water-related challenges and needs, after which research partners will propose suitable technologies for pilot testing and evaluation before large-scale deployment.

PUB said successful projects will be compiled into a portfolio of water recycling and cooling technologies for domestic use and international commercialisation.

Meanwhile, the 85-million-SGD investment in urban water solutions will support research into water treatment, desalination and the control of emerging contaminants. PUB also plans to establish an energy-positive wastewater treatment research facility by 2027 to help research institutions and businesses develop innovative water technologies.