Singapore plans to allocate S$1.1 billion (US$856 million or RM3.63 billion) to three asset managers, including JP Morgan Asset Management, as part of a broader effort to enhance liquidity and expand investor participation in the local stock market.
The other asset managers named for the initial phase of Singapore’s S$5 billion Equity Market Development Programme — which was first announced in February — will be Avanda Investment Management and Fullerton Fund Management, according to a statement issued Monday by the Monetary Authority of Singapore (MAS), the city-state’s central bank. It received more than 100 applications for the programme, it said.
The MAS will appoint additional asset managers in the fourth quarter to manage remaining funds. The central bank will also set aside S$50 million to strengthen local equity research and grow “a more vibrant listed product ecosystem”, according to the statement.
The details mark the first progress update in months from a government-led task force that was formed to address the local equities market’s lagging performance in new listings and trading volumes compared to other major regional peers.
“When we invited asset managers to put forth the proposals, we made clear to everybody that this is not just about injecting funds into Singapore equities market,” Chee Hong Tat, Minister for National Development, said. “But we’re really looking at also how to develop our fund management industry.”
In February, the equity market review group announced a raft of measures aimed at boosting the market. Other initiatives include requiring some family offices to deploy a portion of their assets into domestic equities and streamlining listing rules for companies seeking to go public on the city-state’s stock exchange.
Singapore’s stock market capitalisation has shrunk in recent years, with delistings frequently outnumbering new listings. In 2024, four IPOs in the city-state raised a total of about US$34 million (RM144.14 million) — the second-lowest tally in over two decades, according to data compiled by Bloomberg.
There have been some signs of a turnaround. Earlier this month, NTT DC REIT debuted on the local bourse after raising US$773 million in the country’s biggest initial public offering in eight years, while securing sovereign wealth fund GIC Pte as a cornerstone investor.
Meanwhile, the benchmark Straits Times Index has reached fresh records, driven by strong performance in bank shares.
The task force plans to propose additional measures by the end of 2025, including ways to boost shareholder engagement capabilities, reduce board lot sizes to facilitate wider retail investor access, and enhance efficiency of post-trade custody arrangement.
Source: theedgemalaysia