Singapore’s equities market is set for an overhaul following the release of the final report by the Equities Market Review Group, established by the Monetary Authority of Singapore (MAS) in August 2024. Chaired by Minister for National Development and MAS Deputy Chairman Chee Hong Tat, the group brought together private sector professionals and public officials to tackle declining high-quality listings and trading activity.
Rather than relying on a single fix, the research report advocates a broad, ecosystem-wide strategy that balances supply- and demand-side actions, regulatory modernisation, and improved market connectivity.
Singapore possesses strong foundations, including a thriving start-up scene with over 4,500 tech companies, 400 venture capital firms, and substantial private equity and venture-capital assets under management that have quadrupled since 2015.
Yet global trends have drawn liquidity toward larger exchanges, leaving smaller firms overshadowed.
The new measures aim to break this cycle by cultivating quality initial public offerings, boosting investor participation, and ensuring fair valuations.
On the demand side, the Equity Market Development Program (EQDP) stands out as a flagship initiative.
Launched with S$5 billion from MAS-managed funds, it has already committed nearly S$4 billion across nine fund managers in two batches.
Strategies range from absolute-return to quality-growth approaches, with a third round expected in the second quarter of 2026.
These investments seek to deepen liquidity, encourage research coverage, and draw both institutional and retail capital beyond traditional index-heavy stocks.
Regulatory changes shift toward a more disclosure-based regime while safeguarding investor trust.
Listing reviews will consolidate under the Singapore Exchange Regulation (SGX RegCo), eliminating duplicative processes and shortening timelines to six-to-eight weeks.
Qualitative admission criteria will focus on material disclosures rather than prescriptive judgments, and prospectus requirements will align with international standards, allowing greater pre-listing investor engagement.
Post-listing oversight will become more targeted, replacing broad watch-lists with focused alerts.
Complementary steps include a new Value Unlock Program offering grants and training to help listed companies improve governance, communications, and shareholder engagement, backed by S$30 million.
Investor recourse avenues are also being strengthened through collective-action mechanisms and refined class-action rules.
To improve supply, tax incentives will reward new primary and secondary listings as well as qualifying fund managers establishing operations in Singapore.
Additional support for pre-IPO growth companies and enhancements to the Catalist board aim to nurture smaller enterprises.
On the trading and connectivity front, cross-border depository receipt linkages with ASEAN markets and a streamlined dual-listing bridge with Nasdaq are advancing, while board-lot sizes for higher-priced securities will drop to make retail participation easier.
Market-making incentives and post-trade custody reforms will further reduce costs and friction.
Early signals are encouraging.
Third-quarter 2025 average daily turnover rose 16 percent year-on-year to S$1.53 billion, while year-to-date figures for 2025 show a 20 percent increase. Funds raised through initial public offerings rebounded sharply to more than S$2 billion.
To ensure steady execution, MAS and SGX will co-chair an Equity Market Implementation Committee over the next 12 to 24 months, adapting measures as needed.
Collectively, these reforms position Singapore as an attractive hub for regional growth companies and investors, fostering a virtuous cycle of capital formation, liquidity, and innovation in a regulated environment.