The Monetary Authority of Singapore (MAS) has taken a decisive step in its multi-year strategy to revitalize the local equity market, announcing the third wave of appointments under its S$6.5 billion ($5.09 billion) Equity Market Development Programme (EQDP). This initiative, which serves as a cornerstone of the nation’s broader financial sector roadmap, aims to deepen the liquidity and international appeal of the Singapore Exchange (SGX).
By onboarding five globally recognized asset managers, the MAS is signaling a structural shift in how it intends to cultivate a more robust, active, and liquid domestic equities ecosystem.
The Latest Appointments: A Global Consortium
The third group of appointed asset managers includes a prestigious lineup of international firms: Amundi, Franklin Templeton, HSBC Asset Management, M&G Investments, and Natixis Investment Managers.
These institutions have been selected not merely for their scale, but for their extensive international distribution networks. The MAS mandate for these firms is clear: they are expected to act as conduits for global capital, channeling overseas investment into Singapore-listed companies and the broader Southeast Asian region. By leveraging the research capabilities and distribution footprints of these global giants, the MAS hopes to increase the visibility of Singaporean equities among international institutional investors who may have historically overlooked the market.
Under this latest round, the MAS will allocate S$1.45 billion among the five firms. This injection brings the total capital committed under the EQDP to S$5.4 billion across 14 asset managers, inching closer to the total program ceiling of S$6.5 billion.
Chronology: A Multi-Phased Strategy
The EQDP is not a singular event but a phased, deliberate rollout designed to build momentum incrementally. The progression of these appointments illustrates the MAS’s rigorous approach to market development:
- July 2025 (Round One): The inaugural phase saw the allocation of S$1.1 billion to three strategic asset managers. This period focused on establishing the operational framework and setting the initial baseline for market activity.
- November 2025 (Round Two): The program gained significant traction with the appointment of six additional managers, backed by a substantial S$2.85 billion allocation. This round solidified the commitment to scaling the program rapidly.
- Present (Round Three): The addition of five more managers with a S$1.45 billion commitment continues the trend of diversifying the pool of institutional expertise operating within the Singaporean market.
- The Future (2027): The MAS has confirmed that the review process for a fourth group of asset managers is currently underway. The authority expects to conclude its assessments and finalize the next set of appointments by 2027, effectively completing the primary deployment phase of the EQDP.
Supporting Data and The GEMS Grant
Beyond the allocation of capital to asset managers, the MAS has introduced a tactical instrument to address liquidity concerns at the micro-level. The GEMS Market Making Grant, fueled by S$20 million from the Financial Sector Development Fund, represents a surgical approach to market health.
Mechanics of the GEMS Grant:
- Duration: The scheme is slated to run until December 31, 2028, providing a three-year runway for market-making firms to adjust their strategies.
- Scope: Initially, the grant will support market-making activities for approximately 80 small- and mid-cap stocks, as well as newly listed companies.
- Objectives: The grant is specifically designed to facilitate:
- Narrower Bid-Ask Spreads: Reducing the cost of trading for investors.
- Lower Execution Costs: Improving the efficiency of retail and institutional trades.
- Enhanced Price Discovery: Ensuring that stock prices more accurately reflect the underlying value of the companies.
The MAS has indicated that the list of eligible stocks will remain fluid. Periodic reviews will allow the regulator to add or remove companies based on their market-making requirements, ensuring the S$20 million is deployed where it can have the maximum impact on price discovery and liquidity.
The Impetus: The Equities Market Review Group
These initiatives are not isolated regulatory decisions; they are the direct outcome of the Equities Market Review Group (EMRG). Following the publication of its final report in November 2025, the EMRG outlined a comprehensive set of recommendations aimed at addressing the structural challenges facing the Singaporean equities market, including stagnant liquidity and a perceived valuation gap compared to regional peers.
The EMRG identified that for Singapore to remain a premier financial hub, it must bridge the gap between its world-class status as a wealth management center and the performance of its domestic stock exchange. The MAS, acting as both the regulator and the architect of this development, has adopted these recommendations to create a more hospitable environment for high-growth firms and to encourage a more active trading culture.
Implications for Investors and Market Participants
The implications of the EQDP and the GEMS grant are far-reaching, touching upon the interests of institutional investors, retail traders, and corporate issuers.
For Institutional Investors
The presence of 14 major asset managers with specific mandates to engage with the Singaporean market creates a more stable, long-term capital base. As these managers deploy the S$5.4 billion, it is expected that the depth of the market will increase, allowing for larger trade executions without the extreme price volatility that often plagues thin markets.
For Small- and Mid-Cap Issuers
Historically, smaller firms listed on the SGX have struggled with low liquidity, which often leads to a "liquidity discount" on their share prices. The GEMS grant directly targets this issue. By incentivizing market makers to maintain tighter spreads on these stocks, the MAS is effectively helping these companies achieve a more "fair" market valuation. This, in turn, makes the SGX a more attractive listing venue for SMEs and tech-forward growth companies that are currently considering their financing options.
For Retail Investors
Retail participation is essential for a healthy market. Through narrower bid-ask spreads and lower execution costs, the average investor stands to benefit from a more transparent trading environment. The increased activity generated by the EQDP managers should, in theory, create more "buzz" around the market, potentially drawing in higher volumes of retail capital.
Addressing the Challenges Ahead
Despite the optimism surrounding these initiatives, the MAS faces significant headwinds. Global competition for listings is fiercer than ever, with regional hubs like Hong Kong, Tokyo, and emerging markets like Jakarta vying for the same pool of institutional capital.
Critics of the EQDP argue that government-led market-making can only go so far. For the Singapore market to achieve sustainable growth, it must continue to attract a robust pipeline of high-quality IPOs. The MAS appears to be aware of this, as the GEMS grant specifically includes "newly listed companies," signaling a desire to support companies from their inception on the exchange.
Furthermore, the shift in global monetary policy, particularly the interest rate environment, will play a critical role in whether these incentives translate into sustained equity market growth. While the S$5.4 billion commitment is significant, it is a secondary factor compared to the broader economic performance of the ASEAN region.
Conclusion: A Strategic Pivot
The MAS is effectively attempting to "prime the pump" of the Singaporean equity market. By combining the muscle of 14 international asset managers with the tactical precision of the GEMS market-making grant, the authority is building a multi-layered defense against market stagnation.
The success of these programs will not be measured in the short term, but rather in the sustained increase in trading volumes and the ability of the SGX to attract a broader, more diverse range of international issuers by 2028. As the MAS moves toward the final stage of its EQDP rollouts in 2027, the financial community will be watching closely to see if these measures serve as a catalyst for a renaissance in Singaporean equity trading.
In the final analysis, the MAS is signaling that it is prepared to be an active participant in market development. By aligning the interests of global asset managers with the liquidity needs of the local exchange, Singapore is positioning itself to be more than just a gateway to Asia—it is aiming to be the engine room of the region’s capital markets.
