MAS Allocates $860 Million to Boost Singapore Stock Market

The Monetary Authority of Singapore (MAS) on Monday announced the appointment of first batch of three asset managers – Avanda Investment Management, Fullerton Fund Management, and JP Morgan Asset Management – under the S3.9 billion Equity Market Development Programme EQDP).

MAS and the Financial Sector Development Fund (FSDF) will place an initial amount of $860 million for management with these three managers.

These fund managers were selected based on how well their proposed fund strategies align with the programme’s objectives, as well as the strength of their plans to draw third-party capital into their strategies alongside MAS’ funding.

They were also chosen for their commitments to expand or contribute to the growth of the asset management and research capabilities in Singapore.

“In particular, the fund strategies should have a clear focus on improving liquidity and broadening participation in Singapore equities, with significant allocation to small and mid-cap stocks,” MAS said.

MAS will set aside $38.97 million from the FSDF to enhance the Grant for Equity Market Singapore (GEMS) Scheme. This will strengthen the equity research ecosystem, and complement the supply side initiatives to grow the listed product suite in Singapore. The GEMS Scheme will also be extended till 31 December 2028.

In addition, MAS outlined proposals to enhance investors’ ability to seek recourse. These initiatives build upon the first set of measures announced by the Equities Market Review Group in February 2025.

Encourage Retail Investors

Addressing a news conference, MAS deputy chairman Chee Hong Tat said that they want to see more participation from retail investors, not to see the stock market as short-term punts, but really how to make longer term investments, to grow their investment nest egg, which will also be helpful for the young and the middle-aged before they grow older, to provide better retirement adequacy.

These measures aim to increase investor interest, improve the city-state ecosystem’s attractiveness to quality listings, and adopt a more pro-enterprise regulatory stance while strengthening investor confidence.

MAS has since consulted on proposals to streamline prospectus requirements and broaden investor outreach channels for initial public offerings (IPOs). 

Since the announcement of the EQDP in February, MAS has received strong interest from the asset management industry in the programme, with indications of interest from over 100 global, regional and local asset managers. MAS is reviewing the submissions in batches to speed up the asset manager appointment and capital deployment process.

MAS is reviewing the remaining submissions and will appoint additional asset managers to manage the remaining funds under the $3.9 billion EQDP and the next phase of selection is expected to be announced by end of this year.

By investing with a broad range of fund managers employing varied strategies, the EQDP can leverage their distinct investment expertise and distribution networks to attract commercial capital and strengthen market vibrancy. This will help to improve price discovery and trading liquidity in Singapore’s equities market.

New funding to support research on private companies with strong local presence, to foster investor familiarity and build a pipeline of potential listings. Applicants seeking funding for research on private companies may submit proposals to MAS for consideration.

The Review Group continues to review other initiatives to enhance Singapore’s equities market. These include measures to uplift companies’ shareholder engagement capabilities, strengthen the value proposition and attractiveness of Catalist board, enhance market-making mechanisms to promote deeper liquidity and price discovery, reduce board lot sizes to facilitate wider retail investor access, enhance efficiency of post-trade custody arrangements, and develop cross-border partnerships, MAS said.