Singapore’s EQDP Moves Into Its Next Phase With Another S$1.45 Billion

Singapore’s Equity Market Development Programme is moving into its next phase.

The Monetary Authority of Singapore (MAS) has appointed another five asset managers under the programme, allocating S$1.45 billion and bringing total EQDP allocations to S$5.4 billion across 14 asset managers.

The five managers appointed in the latest round are Amundi, Franklin Templeton, HSBC Asset Management, M&G Investments and Natixis Investment Managers.

For those who have been following the programme since its earlier rounds, the latest announcement is notable not simply because more capital has been allocated. The initiative is beginning to broaden from putting institutional capital behind Singapore equities to addressing market liquidity, international distribution and the investment capabilities being built around the market.

S$5.4 Billion Has Now Been Allocated

The latest appointments represent the third batch of asset managers selected under the EQDP.

The programme was originally established at S$5 billion and has since been expanded to S$6.5 billion. Following the latest S$1.45 billion allocation, S$5.4 billion has now been allocated across 14 managers.

MAS is also reviewing proposals for a fourth batch of asset managers, with further appointments expected in 2027.

The latest group brings another set of large international managers into the programme. MAS said the managers are expected to use their global distribution networks to bring new sources of international capital seeking exposure to Singapore and the region.

Managers appointed in the earlier rounds have also started deploying their allocations into Singapore equities and building investment capabilities locally.

The Next Focus Is Also Liquidity

There was another part of the announcement worth noting.

MAS will commit S$20 million from the Financial Sector Development Fund to establish a new market making grant under the Grant for Equity Market Singapore (GEMS) scheme.

The initial focus will include around 80 small and mid cap stocks as well as newly listed companies.

The objective is to support market making activity and improve liquidity and price discovery in the Singapore equities market.

This adds another dimension to the measures introduced so far. Increasing the amount of institutional capital investing in Singapore is one part of developing the market. Improving the ability to trade those securities efficiently is another.

A Wider Asset Management Push

The latest EQDP appointments also come against a broader set of measures introduced this year to strengthen Singapore’s asset management ecosystem.

In August, MAS announced measures including a proposed tax exemption for certain profit related returns from fund management services provided to qualifying funds, a new hedge fund investment programme and a dedicated Investment Management Track under the ONE Pass framework.

MAS said Singapore’s asset management industry has grown by an average of 7.5% annually over the past five years, reaching almost S$7 trillion.

Seen together, the direction extends beyond attracting more fund structures to Singapore.

There is increasing attention on the investment activity surrounding those structures where investment teams are based, where capital is managed and deployed, the depth of the local market and how Singapore connects international capital with opportunities in the region.

What Comes Next

The EQDP itself is not finished.

With S$5.4 billion of the expanded S$6.5 billion programme now allocated, MAS is reviewing proposals for the next batch of asset managers, with further appointments expected in 2027.

There is also a wider development to watch.

MAS Deputy Chairman Chee Hong Tat has highlighted the work of Singapore’s Growth Capital Workgroup, which is examining how companies access growth capital, how investors realise their investments and how capital can subsequently be recycled.

This places the development of Singapore’s public equities market within a broader discussion about private capital, growth financing and eventual exits.

For the fund industry, the interesting part may therefore be how these initiatives increasingly connect.

The first phase of the EQDP was largely about putting capital to work. The latest measures suggest that attention is also moving towards the market, investment capabilities and infrastructure around that capital.

With another round of EQDP appointments still to come, Singapore’s efforts to develop that ecosystem remain a work in progress.

This article is provided for general information only and does not constitute legal, tax, regulatory or investment advice.