Singapore has launched a significant initiative to invigorate its equity market, with the Monetary Authority of Singapore (MAS) announcing the appointment of three asset managers to oversee an initial S$1.1 billion (US$856 million) portion of its S$5 billion Equity Market Development Programme (EMDP).
This programme, proposed by a review group established in August 2024, is designed to strengthen Singapore’s stock market and is targeted for completion by the end of 2025.
Avanda Investment Management, Fullerton Fund Management, and JP Morgan Asset Management are the first firms to be appointed, with MAS continuing to assess submissions from over 100 global, regional, and local companies.
These managers are expected to actively invest in Singapore stocks, with a particular focus on “improving liquidity and broadening participation in Singapore equities” and making a “significant allocation to small and mid-cap stocks.”
A key aim of the programme is to “crowd in” third-party capital by leveraging the managers’ investment expertise and distribution networks, thereby enhancing market vibrancy. This strategic push comes as Singapore’s stock market has recently contended with poor valuations, limited liquidity, and a scarcity of new listings.
Beyond the S$5 billion fund, the government is implementing broader measures. Prime Minister Lawrence Wong announced forthcoming tax incentives for Singapore-based companies and fund managers that choose to list or invest substantially in local equities.
MAS is also injecting S$50 million from the Financial Sector Development Fund to enhance equity research through the Grant for Equity Market Singapore (GEMS) scheme. This aims to improve research coverage, particularly for the small and mid-cap segment, with increased funding available per research report.
Additionally, MAS plans to strengthen investor protection by consulting on proposals to enhance legal provisions, facilitate collective action, and provide funding assistance for legal costs in cases of market misconduct.
These collective efforts underscore a commitment to unlock “stronger, more sustained capital flows” in Singapore’s stock market.
The review group is also actively exploring other strategies, including ways for companies to engage shareholders more effectively, enhancing the attractiveness of the SGX’s Catalist board, promoting retail investor participation, and fostering cross-border collaborations with overseas exchanges.
