MAS allocates S$1.1 billion to boost the stock market
The Monetary Authority of Singapore (MAS) has appointed Avanda Investment Management, Fullerton Fund Management and JP Morgan Asset Management to manage S$1.1 billion (US$856 million) under a government-led initiative to revitalize the local stock market and deepen liquidity.
The funding is part of the wider S$5 billion Equity Market Development Programme (EMDP), launched in February to increase participation in Singapore-listed equities, especially among small- and medium-sized companies. MAS stated that more asset managers will be selected in phases, with the next group expected by Q4 2025.
The programme targets both foreign and local fund managers based in Singapore and encourages them to co-invest alongside MAS capital. Selected firms must also demonstrate commitment to attracting third-party capital, expanding research capabilities, and broadening investor participation.
Avanda, founded by former GIC investment chief Ng Kok Song, said its strategy focuses on under-researched, undervalued SGX-listed firms, particularly in the small-cap segment. Fullerton will launch a Singapore equities unit trust accessible to retail, accredited and institutional investors. JP Morgan plans to use its ASEAN equity team to unlock long-term opportunities in the local market.
MAS also announced a S$50 million boost to its Grant for Equity Market Singapore (GEMS) scheme, extending it through 2028. The grant provides funding for research on listed companies, including up to S$4,000 per report for firms covering under-followed or pre-IPO stocks. Some of the funding will support digital outreach, especially aimed at younger investors.
At a press conference, MAS Deputy Chairman Chee Hong Tat said the effort is about capital injection and “developing the fund management industry” and encouraging Singaporeans to see the stock market as a tool for long-term wealth building.
The initiative addresses concerns over limited liquidity, low valuations and a shrinking pipeline of listings on SGX. Since the review group behind the program was formed in August 2024, the Straits Times Index has increased by nearly 24%, indicating renewed investor interest.
To further protect investors, MAS proposed new measures to lower barriers to civil recourse in cases of market misconduct. These include allowing designated representatives to launch legal action on behalf of retail investors and exploring a grant scheme to help fund such efforts.
The Singapore Exchange (SGX) welcomed the developments, with CEO Loh Boon Chye noting that “momentum is building” beyond traditional index stocks. “This is just the start,” he said, adding that collective action across the market ecosystem is essential for sustaining capital flows.
