Singapore unveils measures to boost equities market

A key initiative is the $5b Equity Market Development Programme (EQDP).

The Equities Market Review Group has introduced new measures to strengthen Singapore’s equities market.

These measures, which include tax incentives announced during Budget 2025, focus on enhancing market liquidity, attracting quality listings, and fostering investor confidence.

The Monetary Authority of Singapore (MAS) and the Financial Sector Development Fund (FSDF) will launch a $5b Equity Market Development Programme (EQDP). MAS will invest with selected fund managers who focus on Singapore-listed stocks, encouraging broader investment beyond index components.

Fund managers will receive tax exemptions on income from funds that invest significantly in Singapore equities.

The Global Investor Programme (GIP) will also be adjusted to require new Family Office applicants to invest in equities listed on approved Singapore exchanges.

Additionally, MAS will expand its Grant for Equity Market Singapore (GEMS) to improve research on mid- and small-cap companies.

To attract more listings, the government is offering a 20% corporate income tax rebate for new primary listings and a 10% rebate for new secondary listings with share issuance.

Fund managers listing in Singapore will benefit from a 5% concessionary tax rate, provided they distribute part of their profits as dividends.

The government will also continue supporting local enterprises to create a strong pipeline of potential SGX listings.

Moreover, the review group is pushing for a simpler, disclosure-based regulatory framework to streamline the listing process. Listing suitability and prospectus reviews will be consolidated under SGX Regulation (SGX RegCo) for greater efficiency.

SGX RegCo will reduce its reliance on merit-based judgment and focus on ensuring clear disclosures for investors. Listing requirements will be simplified, cutting the review process to six to eight weeks, whilst secondary listings can use their primary market prospectuses with minimal changes.

A more targeted approach will be taken for post-listing queries and trading suspensions, and the financial "Watch-List" will be reviewed for possible removal. MAS and SGX RegCo will issue consultations on these changes by mid-2025.

By the end of 2025, the government said further enhancements may include improving shareholder engagement, reducing board lot sizes to attract retail investors, strengthening investor protection, improving post-trade custody efficiency, and developing cross-border partnerships.