In an era where ideas trump tangible assets, Singapore is positioning itself at the epicentre of a seismic shift in how businesses create and capture value. As Minister Edwin Tong SC declared at this week's inaugural ADR TIPS event, we're witnessing "the growing importance of being able to resolve disputes in a time- and cost-effective manner" in a world where intellectual property increasingly drives economic growth.
Global intangible assets now stand at an all-time high of more than US$65 trillion, fundamentally surpassing the value of tangible assets. To put this in perspective, that's roughly twice Singapore's entire GDP multiplied by 150. For Singaporean investors, this represents the largest wealth creation opportunity in modern economic history—one that many are still overlooking.
"90% of the market value of S&P 500 companies now comes from intangibles – highlighting that ideas, brands, data, and know-how drive growth more than physical infrastructure," Minister Tan See Leng revealed at IP Week @ SG 2025. This isn't a distant trend—it's today's reality, and Singapore is betting big on being Asia's gateway to this intangible economy.
The data reveals a clear eastward shift in global IP activity. Asia now accounts for a remarkable 68.7% of all patent applications filed globally in 2023, representing a dramatic increase of 10.3 percentage points from a decade earlier. With global patent filings surpassing 3.5 million for the first time, we're witnessing the fourth consecutive year of growth.
For Singapore-based professionals and investors, this shift carries profound implications. The 2025 Queen Mary University of London and White & Case International Arbitration Survey confirms Singapore's strategic positioning: the Lion City ranks as the second most preferred arbitration seat globally, with three Asian jurisdictions—Singapore, Hong Kong, and Beijing—claiming spots in the top five preferred seats worldwide.
Singapore's response to this paradigm shift is characteristically systematic and far-reaching. The Singapore IP Strategy 2030 (SIPS 2030), launched in 2021, represents a comprehensive national blueprint to position Singapore as the global hub for intangible assets and intellectual property.
Minister Tan See Leng highlighted Singapore's impressive Global Innovation Index ranking, moving from 8th in 2020 to 4th worldwide in 2024, whilst maintaining its position as first in South-east Asia, East Asia, and Oceania.
The strategy's impact is already measurable. The GoBusiness IP Grow platform, launched in September 2023, has facilitated over 4,500 requests to connect with listed service providers—more than double the tally from a year ago.
Perhaps most critically for Singapore's investor community, SIPS 2030 recognises that IP protection alone is insufficient. As Minister Edwin Tong articulated, "It is equally important, if not more so, for businesses to harness their IP portfolio for growth. Otherwise, IP protection only exists on paper, and does not actually bring any value."
This philosophy underpins Singapore's groundbreaking Intangibles Disclosure Framework (IDF), developed in collaboration with industry partners. Nanofilm Technologies International Limited has become the first company to successfully complete its intangibles disclosure report using Singapore's framework, demonstrating the practical application of these principles.
Recent collaborative research between IPOS and the Singapore Exchange (SGX) studied over 570 listed firms and uncovered a compelling correlation: companies filing more IP rights demonstrated higher stock prices. The Thomson Medical Group exemplifies this dynamic, with its market capitalisation surging 334% in 2013 and 250% in 2018, both instances coinciding with patent and trademark filings
Singapore's strategic positioning extends beyond IP creation and commercialisation to dispute resolution infrastructure. Maxwell Chambers, the world's first integrated alternative dispute resolution complex, houses leading international arbitration and mediation institutions, offering what Minister Tong described as "the complete suite of dispute resolution options."
The Singapore International Arbitration Centre (SIAC) ranks joint-second globally among preferred arbitral institutions, alongside the Hong Kong International Arbitration Centre, according to the 2025 international arbitration survey
This infrastructure is particularly valuable given the increasing complexity of IP and technology disputes, encompassing "whether certain inventions, especially in the AI or biotechnology space, qualify for patent protection, the extent of protection accorded to data, trade secrets, and know-how," as Minister Tong outlined.
For Singapore's high-earning professionals, investors, and business owners, several strategic opportunities emerge:
1. Portfolio Rebalancing: The shift towards intangible assets suggests traditional asset allocation models may be fundamentally outdated. Companies with robust IP portfolios are demonstrating superior market performance.
2. Due Diligence Evolution: Investment decisions increasingly require sophisticated IP valuation capabilities. Singapore's development of standardised IA valuation guidelines, created in collaboration with international appraisal societies, positions local investors ahead of this curve.
3. Regional Gateway Strategy: Singapore's position as Asia's preferred dispute resolution hub creates natural advantages for businesses seeking regional expansion whilst maintaining access to sophisticated legal protections.
4. Regulatory Arbitrage: As Minister Tong noted, geopolitical sanctions impact arbitration proceedings in various ways, with 30% of respondents in international surveys choosing different arbitral seats. Singapore's neutrality and sophisticated legal infrastructure provide competitive advantages in an increasingly complex geopolitical environment.
However, this transformation is not without challenges. The rapid adoption of artificial intelligence in IP and dispute resolution presents both opportunities and risks. The 2025 arbitration survey indicates significant growth expected in AI usage over the next five years, driven by potential efficiencies, yet concerns persist about accuracy, ethical issues, and AI's ability to handle complex legal reasoning.
Singapore's measured approach to these challenges—investing in infrastructure, developing frameworks, and building international partnerships—suggests the city-state is well-positioned to navigate these complexities whilst capturing the associated value creation opportunities.
Singapore's IP strategy represents more than regulatory policy—it's a calculated bet on the future structure of the global economy. With intangible assets valued at over US$65 trillion and growing, and Asia capturing nearly 70% of global IP filings, Singapore is positioning itself at the intersection of these powerful trends.
So the question isn't whether to engage with this transformation, but rather how quickly and effectively to position portfolios and business strategies to capitalise on what may well prove to be the defining economic shift of our generation.
The intangible economy has arrived. Singapore is ready. The question remains: are you?
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