$1.1b Allotted to 3 Fund Managers to Boost S'pore Stock Market

Move aimed at deepening market liquidity and rebuilding investor confidence: MAS

- Sue-Ann Tan and Benjamin Lim

An initial $1.1 billion will be allocated to three asset managers to invest in the Singapore stock market, in a move aimed at deepening market liquidity and rebuilding investor confidence, the Monetary Authority of Singapore (MAS) said on July 21.

The three fund managers are Avanda Investment Management, Fullerton Fund Management and JP Morgan Asset Management, with the next batch of fund managers expected to be announced by the fourth quarter of 2025.

Speaking at a press conference, MAS deputy chairman Chee Hong Tat said it is not just about injecting funds into the Singapore market, but developing the fund management industry.

"At the same time, we also want these asset managers to be able to crowd in private capital, and to be able to then promote greater interest, liquidity into Singapore equities, especially our small to mid-cap companies."

Mr Chee, who is also Minister for National Development, added: "We do 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 I think will also be helpful for the young and the middle-aged before they grow older, to provide better retirement adequacy."

The $1.1 billion forms part of the $5 billion set aside under the Equity Market Development Programme announced by MAS in February, aimed at boosting SGX-listed stocks and revitalising Singapore's stock market.

The programme will allocate capital to a range of funds managed by local as well as foreign fund managers based in Singapore. Eligible fund strategies include those focused on Singapore equities, or with a significant allocation to them as part of regional or thematic portfolios.