Taoism first appeared in Singapore among the first Chinese settlers in Singapore. The majorty of these settlers worship Matsu for the guidance of their safety arrival on another foreign land. Taoist practice later propagated as an increasing number of Chinese merchants and coolies came to settle in Singapore.

During the 18th century, Theravada Buddhist missionaries from other parts of Southeast Asia, including Sri Lanka, plus the fact that the veneration of Kuan Yin proved to be more popular, the influence of Taoism declined from the 1980s, as Buddhism eventually supplanted as the main faith of the ethnic Chinese.

Taoist gods that include the God of wealth, longevity and propagation can be worshipped side by side with Kuan Yin. Chinese operas based on Tanki beliefs, the traditional Chinese folktales, were deeply rooted in ancestral Taoist beliefs.