Singapore to allocate US$1.1 billion to five asset managers to boost its equities market

The useful part

It goes at liquidity, the weak spot for smaller SGX names, while the manager funding aims at demand. Together they are supportive for Singapore small and mid-caps, though the effect will depend on how fast the managers deploy capital and how much third-party money follows. The sleeve's size is modest at about $16 million (currency unspecified), so any lift in trading interest is likely to be gradual.

How it works

• The market-making sleeve is arguably the sharper signal for traders.
• --- Singapore is pairing fresh manager funding with a market-making sleeve, attacking both demand and liquidity in its long-lagging stock market.
• The push comes with the Straits Times Index already near record highs (chart above), though the gains have been concentrated in the large banks, the stocks least in need of extra liquidity.
• Summary MAS will allocate S$1.45 billion (US$1.1 billion) to five asset managers to boost Singapore equities, Deputy Chairman Chee Hong Tat said on Tuesday.
• It is the third batch under the S$6.5 billion Equity Market Development Programme (EQDP).

What to take from it

MAS is also introducing a $16 million market-making sleeve to raise trading interest in SGX-listed stocks. Earlier batches were about S$1.1 billion to three managers in July 2025 and about S$2.85 billion to six managers in November 2025. Other measures in the package include a S$30 million "Value Unlock" programme, smaller board lots and a proposed SGX-Nasdaq dual-listing bridge.

Example or evidence

• It is the third batch of funding to asset managers under the S$6.5 billion Equity Market Development Programme (EQDP).