Singapore expands equity market support, sharpens asset management push

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Singapore expands equity market support

Highlights

MAS expands the Equity Market Development Programme to S$6.5 billion, allocating S$1.45 billion in the third batch to five global asset managers.
A tax exemption for profit-related returns from fund management services to qualifying funds will take effect for income earned in 2026, with implementation from the Year of Assessment 2027.
A new S$20 million market-making sleeve under the Grant for Equity Market Singapore targets trading efficiency and liquidity for around 80 non-STI stocks, including small- and mid-cap names.

New measures for fund managers and capital formation

As reported by Monetary Authority of Singapore, Deputy Chairman Chee Hong Tat says the government is rolling out additional steps to enhance Singapore's asset management proposition and deepen its broader growth capital ecosystem.

Among the measures announced in August is a tax exemption for profit-related returns from fund management services provided to qualifying funds. The exemption is expected to take effect from the Year of Assessment 2027 for relevant fund management companies and individuals, covering income earned in the 2026 basis period.

Chee says Singapore's asset management industry has grown to nearly S$7 trillion in assets under management across more than 1,300 asset managers, with capabilities spanning public and private markets. Over the past three years, MAS has received more than 500 applications for fund management licences, and the median approval time stands at four and a half months in the second quarter of 2026, with the fastest application approved within 12 weeks.

From late January 2027, MAS and the Ministry of Manpower are also introducing a new Investment Management Track under the Overseas Networks & Expertise Pass. Under the revised framework, applicants can meet the S$30,000 qualifying salary through a combination of at least S$15,000 in fixed monthly salary and variable compensation, provided they also meet the qualifying salary criteria for the past three years.

MAS and the Ministry of Trade and Industry are also advancing work through the Growth Capital Workgroup, which is reviewing how companies access financing as they scale, how investors exit holdings and how capital is recycled into new opportunities. Officials identify three areas of focus: support for growth-stage and mid-market companies, broader exit channels including secondaries and continuation vehicles, and stronger capabilities in areas such as securitisation and asset-backed financing.

One area under review is insurers' capital requirements, with MAS considering whether the rules are sufficiently risk-sensitive for infrastructure and securitisation assets. Chee says recommendations from the workgroup will be announced in batches rather than at the end of the process.

Equities programme expands as Singapore targets market depth

MAS also announces the third batch of five asset managers under the Equity Market Development Programme, with S$1.45 billion allocated to Amundi, Franklin Templeton, HSBC Asset Management, M&G Investments and Natixis Investment Managers.

That brings the total committed under the first three batches to S$5.4 billion, following S$3.95 billion allocated across nine managers previously. The programme itself is being expanded to S$6.5 billion from S$5 billion, and MAS says it is reviewing proposals for a fourth batch of managers for announcement next year.

In parallel, MAS is introducing a new S$20 million market-making sleeve under the Grant for Equity Market Singapore scheme. The initiative is designed to improve trading efficiency, execution quality and liquidity, especially for around 80 stocks outside the Straits Times Index, including small- and mid-cap names and new listings.

Chee says the combined measures are intended to strengthen both institutional and retail participation in Singapore equities while reinforcing links between private and public markets. The broader aim is to make Singapore a more effective centre for listings, financing and exits as competition among international financial hubs continues.

In our earlier article on investment banks’ risk intermediation, we explained how large dealers enable trading by taking the other side of client positions in derivatives and other instruments when natural counterparties aren’t available. We noted that banks price, warehouse, and redistribute these exposures—typically for a markup—helping recycle risk across the system and support liquidity and market functioning.

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