I had a friend text this to me a few days back, not sure if it's accurate -- but it would explain why the game has never been outright cancelled and just keeps getting postponed forever.
It's true that the government of Singapore did help them. It is a common practice in many countries, specially in Canada or Europe, where governments help companies who make to make hirings on qualitied/tech jobs, or to attract big companies to open a studio in their country (so to attract investment, talent and knowhow), or to support their cultural industries or startups, or to partially help them in things like to localize games to a small local language, too small that wouldn't be profitable otherwise for the company. In other cases, these goverments give the game companies a loan in pretty good conditions to fund developments.
These helps typicaly are money or tax reductions, and usually have a pretty strict control and aren't paid all at the same time, but instead paid split in different portions when achieving certain milestones.
When not achieving a milestone, the company simply doesn't get the remaining portion of the help, but there's no other penalty other than that. In the case of the loans, if the project goes wrong and the company can't pay it back and instead to shut down the studio, in some cases there's a portion of the debt that doesn't need to be returned.
These things aren't special for this game or for Ubisoft. In fact, typically small and new studios are the ones who get it. And these helps traditionally cover only a small percentage of the funding needed for the game, specially in the big ones.
Ubisoft has a lot of money, so they don't care about these helps and in some countries don't get it. So if they don't get this help, or a portion of it, they won't care. Because for them it's only a small portion of that cost. I think they didn't cancel the game because they simply think that have no reason to cancel it.