MAS Unveils S$5 Billion EQDP to Revive Singapore Equity Market

Singapore’s financial sector rarely stands still. With the recent Monetary Authority of Singapore’s (MAS) S$5 billion Enhanced Equities Market Development Programme (EQDP), we are witnessing the boldest push yet to rejuvenate local capital markets.

What’s behind the move? A desire to establish Singapore as a premier global asset management hub, while making local equities more attractive to both investors and issuers.

The S$5 Billion Boost – Programme Essentials at a Glance

Let’s break down the numbers and what the programme includes:

• Total Size: S$5 billion, allocated over several years.
• Funding: MAS and the Financial Sector Development Fund (FSDF).
• Launch & Appointments: Announced in February 2025. The first batch of asset managers was revealed in July 2025. Second batch due Q4 2025.
• Who Benefits: Singapore-based asset managers, retail and institutional investors, and local listed (and soon-to-list) companies.

Why Singapore’s Equity Market Needed an Overhaul

Singapore has world-class infrastructure and efficiency, making it a magnet for global capital. However, its equity market faces several critical hurdles.

There is investor disinterest, with too few people engaging with companies listed here, particularly those with a local or regional focus.

Additionally, many small and mid-sized companies lack sufficient research or analyst coverage. There is also a need to deepen asset management skills, especially around equities.

Lastly, local companies often struggle to justify listing due to limited investor interest and high regulatory hurdles.

Image Credits: Monetary Authority of Singapore

The Equities Market Review Group, formed in August 2024, mapped out these pain points. They found that too many promising local enterprises are inaccessible to retail investors. Therefore, the EQDP is the comprehensive solution.

What the EQDP Will Change: Core Objectives

MAS outlined four main goals for the EQDP:

1. Strengthen Local Asset Managers: Building both skill and scale, so homegrown players can compete globally.
2. Increase Investor Interest: Make Singapore equities, especially overlooked ones, worth a second look for all investors.
3. Improve Market Attractiveness: Incentivise more firms (local and overseas) to list in Singapore.
4. Broaden Participation: Tap into small and mid-cap stocks, not just household names.

This multi-pronged effort won’t just help the Singapore Exchange (SGX); it trickles down to every investor, retiree, and entrepreneur.

Who’s Leading the Charge? Meet the First Asset Managers

The first S$1.1 billion from the EQDP has been allocated to three institutional investors, picked after a robust selection process:

• Avanda Investment Management: A boutique, Singaporean firm with direct local equity expertise.
• Fullerton Fund Management: Temasek’s subsidiary, renowned for sharp, regionally attuned investing.
• JP Morgan Asset Management: An established global player with deep roots in Asia.

Why these three? MAS looked at their ability to:

• Focus on Singapore equities (including mid-caps and small-caps).
• Attract additional (third-party) capital, multiplying the impact.
• Expand local research and asset management expertise.

More Than Money: Complementary Initiatives, Grants, and Tax Breaks

The EQDP isn’t a stand-alone effort. MAS and FSDF also enhanced the Grant for Equity Market Singapore (GEMS) and rolled out market-friendly tax and regulatory reforms.

GEMS Enhancements (S$50 million more to 2028):

Tax Incentives & Regulatory Reforms:

The EQDP is part of a broader package of measures designed to enhance Singapore's attractiveness as a financial hub and encourage market participation.

These initiatives include both tax incentives and regulatory reforms aimed at stimulating investment and supporting fund managers in the equity market.

Digestible Pro-Tip: SMEs considering a listing now face far less red tape and greater financial viability. Investors can expect a broader selection of well-researched local companies to choose from in the coming years.

What Do Experts & Stakeholders Say?

The optimism is palpable. Here’s what industry watchers are saying:

• SIAS (Securities Investors Association Singapore): Applauds MAS’s focus on empowering mid and small-caps, and boosting research quality.
• As Mark Yuen, Chief Business Development Officer, Fullerton Fund Management, as released on 21 July 2025, quoted:

“With the market volatility we are facing today, affected by the dollar weakness and global interest rate movements, we see demand for Singapore and SGD-denominated assets from across the different investor segments here in Singapore and abroad. We will be bringing a solution to the market in line with the goals of the EQDP.”

What It Means for You: Actionable Insights & Pro-Tips

How can you make full use of the EQDP:

For Individual Investors & Retirees

Investors should diversify locally by considering well-run small and mid-cap SGX stocks. Upcoming research reports will help filter hidden gems.

It's also important to track new funds under the EQDP umbrella, as these funds are likely to get first dibs on growth opportunities.

Explore funds aligned with your risk and retirement horizon. Stay informed by watching for reports from appointed asset managers and industry analysts. Knowledge is power, especially in early-stage market movements.

For Professionals & Entrepreneurs

Professionals should prepare for listing, as regulatory reforms have made it easier and cheaper to list locally. If your company seeks capital, explore new grants and incentive structures.

Additionally, SMEs with a strong local presence can access research coverage support, raising their visibility to investors.

Networking is crucial; asset managers, analysts, and regulators will be more active in training and outreach. Engage in industry forums to build both skills and contacts.

For Businesses

Businesses should collaborate with research teams. If you run a listed company, now is the time to pitch your story to research houses or digital finance channels.

Also, review tax options by confirming with your advisors if your company can benefit from the newly introduced tax rebates and incentives.

Getting Involved:

• Attend Webinars and SGX events: The next 12 months will be packed with information sessions.
• Consult your financial adviser: Review your portfolios to identify underweight positions in SGX small/mid-cap equities.
• Consider DRs and ETFs: The GEMS enhancements mean more choices for Singapore Depository Receipts and innovative ETFs. These offer international diversification with local oversight.

Practical Guide:

• Bookmark the MAS and SGX websites.
• Subscribe to updates from the first-batch asset managers.
• Set Google Alerts for “EQDP”, “SGX small cap”, and “MAS equity initiatives”.

Timelines, Metrics, and What’s Next

Bottom Line:

By reviving investors’ appetite for local equities, MAS’s S$5 billion EQDP is not just a headline; it’s a reset for Singapore’s capital markets.

The MAS Equity Market Development Programme represents a transformative initiative for Singapore's capital markets, combining substantial government investment with strategic policy reforms to create a more vibrant and attractive equity market ecosystem.

With strong industry support, comprehensive implementation planning, and clear developmental objectives, the EQDP positions Singapore to strengthen its role as a leading Asian financial center while providing enhanced opportunities for both investors and companies seeking capital market access.

Key Contacts and Application Information

For Asset Manager Applications:

• Email: EQDP@mas.gov.sg
• Contact: Monetary Authority of Singapore

For GEMS Scheme Applications:

• Refer to the MAS website for detailed application procedures
• Contact: fsdf@mas.gov.sg

Source consulted: Intracorp's 'Businesses in Singapore to receive new grant in October amid US tariffs,'and ASEAN Briefing's 'Singapore to Roll Out Business Adaptation Grant in October'

You can now be our community contributor and make a pitch to have your favourite personality be on our show.
Join our community group and drop us your insights on this topic.

 

Stay ahead in your financial journey! Sign up for our newsletter to receive insights, tips, and strategies from The Financial Coconut

Share:

The ASEAN Power Grid: Singapore's Renewable Energy Lifeline in a Climate-Conscious Era

Rethinking Retirement: Charting Fulfilling New Careers as You Age

MAS Unveils S$5 Billion EQDP to Revive Singapore Equity Market

Should You Quit Your Job or Stay? The Truth No One Tells You [W&S 131]