The 42-year-old faces a jail sentence of between eight and 20 years over the alleged attack.
The man, who cannot be named to protect the identity of the victim, told a court in Singapore the little girl made sexual advances on him at the time of the alleged assaults.
The court rejected his initial guilty plea as he now faces more serious charges.
He did not dispute the statement of facts presented to the court nor deny what he did.
Prosecutors said the man would commit sex acts on his daughter while he was in bed with her mum.
“Only God can help me now”
The court heard the stepdad touched the victim’s private parts only over her clothes.
It was heard his “lust for his stepdaughter grew” and his sexual assaults began to worsen.
The alleged victim’s biological dad had regular contact with her – and she later told him about the sex attacks.
Her dad then filed a police report the following day and he was arrested.
The stepdad claimed the eight-year-old took his hands and placed them on her private parts.
Having said that, he then said he wanted to plead guilty as he felt the case had dragged on for too long and had caused him and his family undue stress.
He told the court: “Only God can help me now.”
Deputy Public Prosecutor Kavita Uthrapathy said that the man made it seem like he was “being forced to plead guilty, when it is not the case”.
Justice Valerie Thean rejected his plea on the basis that he did not accept the statement of facts.
She also raised his bail from £28,400 to £45,500, and the prosecution also withdrew their guilty plea offer.
The accused’s lawyer, Mr Tan Jeh Yaw, has discharged himself from the case.
And the accused could also receive at least 12 strokes of the cane.
A STEPDAD has claimed his daughter, 8, “led him on” before he sexually assaulted her, a court heard.