Singapore MAS to give S$1.45bn to five fund firms for stock market lift

For traders, the market-making sleeve may be the more telling move. It targets the liquidity shortfall that has dogged smaller SGX-listed stocks, whereas the manager funding addresses demand. The combination could benefit Singapore small and mid-caps, but the outcome hinges on the speed of capital deployment and the amount of outside money it attracts. At around $16 million (currency not given), the sleeve is modest, so any lift in trading activity will probably be gradual.

Singapore is combining new manager funding with a market-making sleeve, taking aim at both demand and liquidity in its underperforming stock market.

The move arrives as the Straits Times Index hovers near record levels, but the rally has been led by big banks, which are the least in need of further liquidity.

Summary

• On Tuesday, Deputy Chairman Chee Hong Tat said MAS will assign S$1.45 billion (US$1.1 billion) to five asset managers to support Singapore equities.
• This represents the third tranche under the S$6.5 billion Equity Market Development Programme (EQDP).
• MAS is also rolling out a $16 million market-making sleeve aimed at boosting trading interest in SGX-listed stocks. The currency was not disclosed.
• Previous tranches consisted of roughly S$1.1 billion to three managers in July 2025 and about S$2.85 billion to six managers in November 2025.
• Additional elements in the package include a S$30 million "Value Unlock" programme, reduced board lots, and a proposed SGX-Nasdaq dual-listing corridor.

Singapore will assign S$1.45 billion (US$1.1 billion) to five asset managers to strengthen its equities market, as announced Tuesday by Monetary Authority of Singapore Deputy Chairman Chee Hong Tat. This marks the third instalment of funding to asset managers under the S$6.5 billion Equity Market Development Programme (EQDP).

Chee also stated that MAS is implementing a $16 million market-making sleeve designed to increase trading activity in SGX-listed equities. The currency of that amount was not specified. The sleeve addresses the liquidity challenges that have long affected smaller Singapore-listed companies, where thin trading often deters institutional involvement.

The EQDP, launched in February 2025, was created to enhance local fund management capabilities and direct more capital into Singapore-listed stocks. It is part of a broader initiative, managed by the Equities Market Review Group, to improve trading volumes and valuation levels on the exchange.

The phased deployment offers context. The first tranche, of about S$1.1 billion, went to three managers in July 2025. The second tranche, of roughly S$2.85 billion, was placed with six managers including BlackRock in November 2025, bringing total allocations to approximately S$3.95 billion across nine managers. Adding the latest S$1.45 billion would push the total to roughly S$5.4 billion, leaving about S$1.1 billion from the programme unallocated. The S$1.1 billion first tranche and the US$1.1 billion announced today are separate sums in different currencies.

After Budget 2026, the programme was enlarged from S$5 billion to S$6.5 billion. MAS said the additional funds would allow it to back more high-quality managers with strategies that focus heavily on Singapore equities, and also help attract third-party capital to the market.

The EQDP is accompanied by other measures, such as a S$30 million "Value Unlock" programme run with the exchange to help listed firms improve investor engagement, smaller board lots for shares above S$10, and a proposed dual-listing framework between SGX and Nasdaq for larger Asian companies.

The names of the five managers and the details of their mandates were not provided in the announcement. Investors will look for these details, and for the speed at which the funds are deployed, to gauge the likely effect on liquidity and valuations.