28 August 2025

On 21 July 2025, the Monetary Authority of Singapore (“MAS”) announced the appointment of the first batch of asset managers under the S$5 billion Equity Market Development Programme (“EQDP”). MAS has also committed S$50 million to strengthen support for local equity research and to grow a more vibrant listed product ecosystem. In addition, MAS announced that it will consult on proposals to enhance investors’ ability to seek recourse.

These initiatives build upon the first set of measures announced by the Equities Market Review Group (“Review Group”) in February 2025, which aims to increase investor interest, improve the attractiveness of Singapore’s ecosystem to quality listings, and adopt a more pro-enterprise regulatory stance while strengthening investor confidence.

First batch of EQDP asset managers appointed

MAS has appointed the first three asset managers under the EQDP, and will place a combined initial sum of S$1.1 billion with them, out of the total of S$5 billion that has been set aside for the EQDP.

The factors considered in selecting the managers included the alignment of the asset managers’ proposed fund strategies with the EQDP objectives, the strength of their proposals to crowd in third-party capital into their strategies alongside MAS’ funding, and 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 is reviewing the remaining submissions and will appoint additional asset managers to manage the remaining funds under the EQDP. The next phase of selection is expected to be announced by Q4 2025. 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.

Boosting equity research and product listings

To complement the Review Group’s overall efforts to enhance the vibrancy of Singapore’s markets and broaden investor participation, MAS will set aside S$50 million from the Financial Sector Development Fund 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.

The Research Development Grant under GEMS will be enhanced to provide additional funding for research reports, new grant funding for research houses to defray costs of research dissemination via digital media, and new funding to support research on private companies with strong local presence.

In addition, the Listing Grant under GEMS will be expanded to enhance product diversity and trading liquidity in Singapore.

Measures to strengthen investor protection by enhancing investor recourse avenues

MAS noted that as the regulatory approach moves toward a more disclosure-based regime, measures to strengthen investor protection by enhancing avenues for investor recourse should be considered. In line with the Review Group’s guidance, MAS has identified three areas of focus and will consult on the following proposals later this year:

  • Enabling pursuit of legal action: MAS will consult on proposals to enhance existing legal provisions that enable investors to ride on a court action or civil penalty to seek compensation. This will reduce the burden on investors when pursuing civil recourse action.
  • Facilitating self-organisation: MAS will consult on proposals to allow representatives to organise and carry out legal action on behalf of investors. This will facilitate not-for-profit assistance to investors, including by organisations such as the Securities Investors Association Singapore. MAS will consult on the criteria for such representatives, to reduce the risk of potential profiteering behaviour and vexatious litigation.
  • Providing access to funding: MAS will consult on setting up a grant scheme to defray the costs of organising investors and taking legal action for cases involving market misconduct. This will reduce cost barriers that deter investors from seeking compensation through civil action.

Further measures

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.

Reference materials

The press release is available from the MAS website www.mas.gov.sg.