BACKGROUND

On 21 February 2025, the Equities Market Review Group announced a first set of measures to strengthen Singapore’s equities market (SGX), focusing on increasing investor interest, attracting quality listings, and enhancing regulatory frameworks to boost investor confidence. Key initiatives include:

1. INCREASING INVESTOR INTEREST:

• Launch of a S$5 billion Equity Market Development Programme (EQDP) to invest in Singapore-listed stocks. MAS will be looking to invest with selected fund managers whose investment mandates consist of a strong focus on Singapore stocks.
• Tax exemptions for fund managers investing in Singapore-listed equities.
• Adjustments to the Global Investor Programme (GIP) to channel more capital into Singapore-listed equities. Qualifying investment categories have been narrowed to equities listed on approved Singapore exchanges.
• Expansion of the Research Development Grant Scheme to develop a ready investor base, support mid- and small-cap companies, and broaden research dissemination.

2. IMPROVING ATTRACTIVENESS TO QUALITY LISTINGS :

• Tax rebates for new primary (20%) and secondary (10%) listings.
• Enhanced 5% concessionary tax rate for new fund manager listings. Qualifying fund managers are required to allocate a share of their profits as dividends.
• Continued government support for local enterprises to create a pipeline of potential listings.

3. PRO-ENTERPRISE REGULATORY STANCE:

• Consolidation of listing functions under SGX RegCo for greater clarity and efficiency.
• Streamlined SGX RegCo’s qualitative criteria, focusing on disclosure on material issues.
• Streamlined prospectus requirements and listing processes, reducing review timelines to 6-8 weeks.
• A more targeted approach to post-listing interventions to balance market discipline and investor protection.
• Plans to remove the financial “Watch-List” and simplify secondary listing requirements.

4. NEXT PHASE (BY END-2025):

• Programmes to enhance shareholder engagement and value creation.
• Market structure changes to attract retail liquidity (e.g., reducing board lot sizes).
• Strengthened investor protection and improved post-trade efficiency.
• Development of cross-border partnerships.

These measures aim to deepen SGX market liquidity, attract quality listings, and position Singapore as a competitive global financial hub while maintaining high corporate governance standards. Detailed consultations will be issued by mid-2025, with further proposals to be finalised by end-2025.

WHAT’S NEXT?

Managements of FIs should:

1. Participate in the consultations by the Review Group.
2. Actively engage with MAS if they invite financial institutions to follow-up dialogues.
3. Explore business relationships with Singapore-focused fund managers and corporate finance advisors to take advantage of the measures proposed.

And more…

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