Introduction

Singapore’s stock market has long underperformed its status as a global financial hub. For more than a decade, trading volumes have been thin, equity research coverage sparse, and the SGX has lost several landmark listings to New York and Hong Kong — particularly technology companies seeking deeper liquidity pools. In response, the Monetary Authority of Singapore (MAS) launched the Equity Market Development Programme (EQDP) in February 2025, committing S$5 billion — expanded to S$6.5 billion at Budget 2026 — to inject institutional capital into Singapore equities and catalyse a more vibrant local market. It is the government’s most ambitious attempt yet to recalibrate the bourse’s fortunes.

Programme Design and Progress

The EQDP allocates government funds to selected asset managers who commit to investing significantly in Singapore-listed equities. This mechanism simultaneously injects liquidity and creates commercial incentives for professional research coverage of local stocks — addressing two of the market’s most persistent structural weaknesses.

EQDP Key Milestones

Milestone	Date	Detail
EQDP launched	Feb 2025	S$5 billion committed
First asset managers appointed	Jul 2025	3 managers; S$1.1bn placed
Expansion announced	Feb 2026 (Budget 2026)	S$6.5 billion; 9 managers
Next selection round	Mid-2026 (planned)	Additional managers to be added

By February 2026, nine asset managers had been appointed across two tranches, with S$3.95 billion allocated. The roster spans global names (BlackRock, JP Morgan Asset Management) alongside Singapore-based specialists (Lion Global Investors, Fullerton Fund Management, Avanda Investment Management), combining international credibility with local market knowledge.

The February 2026 expansion from S$5 billion to S$6.5 billion was announced alongside Budget 2026, reflecting the government’s conviction that the initial cohort of managers had demonstrated sufficient early traction to warrant further capital. A third cohort is expected by mid-2026. MAS also committed S$50 million specifically to strengthening equity research — targeting the chronic information gap that has deterred institutional investors from smaller-cap SGX stocks.

Structural Challenges Ahead

EQDP addresses the demand side of the equation but Singapore’s equity market faces a simultaneous supply-side challenge: the pipeline of quality new listings remains thin. The government has taken steps to simplify listing requirements and broaden the base of eligible SPAC structures, but converting private Singapore companies — particularly in technology and healthcare — into listed entities requires a cultural shift as much as regulatory reform.

The Anchor Fund, a separate S$1.5 billion government-backed co-investment vehicle announced alongside EQDP at Budget 2025 and expanded at Budget 2026, is designed to leverage private capital into Singapore equities. Together, these instruments represent a coordinated, multi-year policy commitment rather than a one-off intervention.

Summary

EQDP is a structural, long-term commitment rather than a short-term market stimulus. Its success will depend on whether appointed managers generate genuine returns from Singapore equities — which requires the listing pipeline to improve in both quality and diversity. For asset managers, allocators, and corporate finance professionals, the programme signals a sustained policy tailwind for local equities that may meaningfully reshape capital allocation across the region in the years ahead.