$5b scheme to boost local equities market

Central bank will partner with selected fund managers to invest in Singapore stocks

- Sue-Ann Tan and Timothy Goh

A review group set up to strengthen the local stock market has announced new initiatives aimed at increasing interest from both retail and institutional investors, while also improving trading liquidity.

The Monetary Authority of Singapore (MAS) will launch a $5 billion programme through which it will partner with selected fund managers to invest in Singapore stocks, it said on Feb 21.

Regulations will also be streamlined to make the listing process more efficient, and to be more focused and facilitative of listings, MAS said.

The updates come in addition to tax incentives announced in Budget 2025 to get more companies and fund managers to list on the Singapore Exchange (SGX), as part of measures to boost the local equities market.

The aim is to cultivate more quality initial public offerings (IPOs) to pique investor interest, as well as build a greater range of Singapore-focused funds to boost institutional activity and shareholder involvement in listed companies, MAS said.

The measures announced are also expected to encourage broader investor participation in the local stock market beyond the 30 counters listed on the Straits Times Index, MAS said.

Second Minister for Finance Chee Hong Tat said the focus was on making the local stock market attractive to companies in Singapore and the region that may not be able to sustain investor interest in bigger exchanges in the United States.

"Our approach was to look at the feedback and ideas that we have received, and also to work on strengthening the foundations and the elements of our equities market," said Mr Chee, who is also Transport Minister and MAS deputy chairman.

"We are not looking for just one silver bullet, because there isn't one. We want our approach to be comprehensive, holistic. So we want to try and address different aspects of the market that can have a positive impact on the overall attractiveness and competitiveness."