$1.1 billion allocated to three fund managers to boost Singapore stock market: MAS

SINGAPORE – An initial $1.1 billion will be allocated to three asset managers to invest in the Singapore stock market, in a move aimed at deepening market liquidity and rebuilding investor confidence, the Monetary Authority of Singapore (MAS) said on July 21.

The three fund managers are Avanda Investment Management, Fullerton Fund Management and JP Morgan Asset Management, with the next batch of fund managers expected to be announced by the fourth quarter of 2025.

Speaking at a press conference, MAS deputy chairman Chee Hong Tat said it is not just about injecting funds into the Singapore market, but developing the fund management industry.

“At the same time, we also want these asset managers to be able to crowd in private capital, and to be able to then promote greater interest, liquidity into Singapore equities, especially our small to mid-cap companies.”

Mr Chee, who is also Minister for National Development, added: “We do want to see more participation from retail investors, not to see the stock market as short-term punts, but really how to make longer-term investments, to grow their investment nest egg, which I think will also be helpful for the young and the middle-aged before they grow older, to provide better retirement adequacy.”

The $1.1 billion forms part of the $5 billion set aside under the

Equity Market Development Programme announced by MAS in February,

aimed at boosting SGX-listed stocks and revitalising Singapore’s stock market.

The programme will allocate capital to a range of funds managed by local as well as foreign fund managers based in Singapore. Eligible fund strategies include those focused on Singapore equities, or with a significant allocation to them as part of regional or thematic portfolios.

The three fund managers were selected based on how well their proposed fund strategies align with the programme’s objectives, as well as the strength of their plans to draw third-party capital into their strategies alongside MAS’ funding.

Avanda Investment was founded by Mr Ng Kok Song, a former chief investment officer of GIC and candidate in the 2023 Singapore Presidential Election. Fullerton Fund Management is part of Seviora Holdings, an independent asset management group wholly owned by Temasek.

They were also chosen for their commitment to “expand or contribute to the growth of the asset management and research capabilities in Singapore”, MAS added.

“In particular, the fund strategies should have a clear focus on improving liquidity and broadening participation in Singapore equities, with significant allocation to small and mid-cap stocks,” it noted.

“By investing with a broad range of fund managers employing varied strategies, the programme can leverage their distinct investment expertise and distribution networks to attract commercial capital and strengthen market vibrancy,” MAS said.

The asset managers under the programme are responsible for day-to-day investment and portfolio management decisions. MAS said it does not guarantee their investment performance.

In response to queries, Fullerton Fund Management said its unit trust will be invested in stocks listed on the Singapore Exchange (SGX) and have exposure to companies of various sizes.

It will be open to all types of investors, including retail, accredited and institutional, and will allow them to invest or redeem on a daily basis.

Ms Pauline Ng, Asean head in the emerging markets and Asia-Pacific equities team at JP Morgan Asset Management, said the fund manager will leverage its investment capabilities and local expertise to further unlock the potential of Singapore’s equities market for investors.

An Avanda spokesperson said: “We are allocated to Singapore equities within our existing portfolios and have participated in Singapore IPOs (initial public offerings) regularly as a cornerstone investor.

“Aligned with the spirit of the programme, our strategy is invested in SGX-listed companies with a strong focus on the small and mid-cap segment.”

Avanda added that it sees “many overlooked, undervalued companies”.

“Coupled with decisive supply-side initiatives, we believe the stars are aligned for an equities revitalisation in Singapore,” it said.

MAS received interest from over 100 global, regional and local asset managers, and is reviewing the submissions in batches to speed up the appointment of more asset managers and the process of capital deployment.

SGX group chief executive Loh Boon Chye said: “Momentum is building in our stock market beyond index names and in our listing pipeline – but this is just the start. With collective efforts across the ecosystem, we can unlock stronger, more sustained capital flows.”

Enhance investor protection

Additional measures to strengthen investor protection were also announced as part of the shift towards a more disclosure-based regulatory regime.

“Investors should be able to seek civil recourse should there be losses suffered due to market misconduct,” MAS said.

Facilitating investors in seeking civil recourse is important to bolstering confidence and upholding the reputation of Singapore’s capital markets, it noted.

Mr Chee said there has been feedback from investors that they face barriers in seeking recourse through civil action, and that it may take too long and may be difficult to organise ground efforts. 

“The proposals that we are putting out for public consultation seek to strike a balance between lowering the barriers and making it easier for investors to seek recourse in genuine cases, versus avoiding an overly litigious operating environment where we have a lot of lawsuits.”  

MAS said it will seek feedback on proposals to enhance current legal provisions that enable investors to ride on a court action or civil penalty to seek compensation.

It will also consider proposals to allow designated representatives to organise and initiate legal action on behalf of investors.

This is intended to facilitate not-for-profit assistance for investors, including by bodies like the Securities Investors Association Singapore (Sias).

MAS will also seek feedback on establishing a grant scheme to help cover the costs of organising investors and pursuing legal action in cases of market misconduct.

Mr David Gerald, president of Sias, said MAS’ announcement of new investor recourse avenues is good news for retail investors and will be hugely beneficial for capital markets.

“Capital markets should not be litigious and courtroom resolution should always be the last resort. Sias strives to resolve company disputes in the boardroom amicably in a tripartite manner, working closely with the boards and senior managers, as well as regulators, to achieve the best desirable outcome for all parties,” he said.

He added that MAS’ support to lower the cost of investor recourse will increase investor confidence in Singapore.

Mr Terence Quek, chief executive of Singapore Institute of Directors, also welcomed MAS’ initiatives to strengthen the corporate governance framework.

“They will help level the playing field for retail investors as the regulatory regime shifts to a more disclosure-based approach,” he said.

“Striking the right balance between protecting investor rights and avoiding a climate of excessive legal action will be key to the success of these reforms.”

He added that it would also be critical to equip directors with the right skills and networks so that they can protect the best interests of their companies while meeting regulatory requirements.

SGX’s Mr Loh also noted that companies will be motivated to strengthen their growth and governance as Singapore moves towards a more market-driven environment.

“If there is company misconduct, investor recourse can complement strong and decisive enforcement actions by the authorities,” he said.

Strengthen equity research

MAS will set aside $50 million over the next three years to strengthen equity research and listing support. This will be used to enhance the Grant for Equity Market Singapore (Gems) scheme, which helps to boost the equity research ecosystem.

The scheme, which previously was valid till Dec 31, 2026, will be extended till Dec 31, 2028.

Equity research can facilitate price discovery and fair valuation of companies, allowing investors to make informed and timely decisions, MAS said.

“Industry feedback has indicated that research coverage, particularly in the small and mid-cap segment, could be improved,” it noted.

“More efforts can also be made to engage younger investors through digital media channels, and to expand upstream research coverage of pre-IPO companies to support potential IPOs.”

MAS will also enhance the research development grant under Gems. It will provide additional funding of $1,000 for each research report, with a further $1,000 if the report initiates research coverage or covers pre-IPO stage and newly listed companies.

This means the current maximum funding of $4,000 can go up to $6,000 per research report.

“This enhanced funding aims to boost investor awareness and trading interest in under-researched segments, particularly small- and mid-cap enterprises,” MAS said.

There will also be new grant funding for research houses to defray costs of disseminating their research.

MAS will also provide new funding to support research on private companies with strong local presence. Those seeking funding for research on such companies may submit proposals to MAS.

In addition, the listing grant under Gems will be expanded to enhance product diversity and trading liquidity.

The overall funding per primary listed exchange-traded fund (ETF) will be increased from $100,000 to $250,000. A new funding sleeve will also support cross-listed and feeder ETFs, with $180,000 per listing.

“This will facilitate more ETF listings in Singapore, adding to the range of listed investment products to provide more investor choice,” MAS said.

There will also be a new funding sleeve to provide $40,000 per depository receipt issuance, to cover Singapore depository receipts and foreign depository receipts with underlying Singapore stocks.

Looking ahead, other enhancements to boost the Singapore market are also being studied, Mr Chee noted. 

These include ways for companies to engage shareholders better, enhancing the attractiveness of the Catalist board as a platform for fundraising, and promoting retail investor participation in the market.