Singapore weighs tax incentives to boost equities market

Further measures are expected in the second half of the year.

The Equities Market Review Group has proposed tax incentives to attract more listings and investments in Singapore’s equities market in its first set of measures. These proposals have been submitted to Prime Minister Lawrence Wong and Finance Minister Gan Kim Yong.

The review group noted that technological advancements have made global markets more accessible, leading to increased capital concentration in a few major stock exchanges, particularly in the United States. This trend has created challenges for other markets, including Singapore, in attracting investor interest and liquidity.

In response, the group has developed measures to support Singapore enterprises in accessing growth capital and to attract regional companies to list in Singapore. The initiatives aim to appeal to mid-sized businesses that may not have direct access to major capital markets, as well as companies seeking secondary listings in Asia.

Key focus areas include boosting the supply of quality listings, streamlining the regulatory process for initial public offerings (IPOs), and introducing tax incentives to attract enterprises and fund managers.

The proposed incentives will also encourage the launch and expansion of funds with significant investments in Singapore’s domestic equities.

A full update will be provided on 21 February, with further measures expected in the second half of the year.