New growth capital work group set up in Singapore to support firms from start-up to IPO
Sign up now: Get ST's newsletters delivered to your inbox
National Development Minister Chee Hong Tat speaking to the media on Feb 13.
ST PHOTO: LIM YAOHUI
SINGAPORE - A new work group has been set up to help companies from Singapore and the region raise money at every stage of their growth – from early start-ups seeking seed funding, to firms expanding across the region, and eventually to late-stage financing and initial public offerings (IPOs).
The Growth Capital Workgroup will recommend measures to strengthen Singapore’s growth capital markets, including venture capital, private equity and private credit, as well as securitised assets, the Monetary Authority of Singapore (MAS) and the Ministry of Trade and Industry (MTI) said on Feb 13.
It will also study the entire financing value chain, from sourcing investment opportunities and structuring deals, to raising and deploying capital, and eventually recycling returns into new investments.
The move is expected to help further the development of Singapore’s start-up ecosystem and support a new generation of enterprises as they scale regionally and globally.
The new work group will include key private sector stakeholders such as Ms Tan Su Shan, chief executive of DBS Bank; Mr Loh Chin Hua, chief executive of Keppel; Mr Mark Konyn, group chief investment officer of AIA; Mr Andy Tai, head of South-east Asia investment banking at Goldman Sachs; Mr Edwin Low, partner at investment firm BlackRock; and Ms Jenny Lee, senior managing partner at Granite Asia.
They will be joined by public sector representatives, with support from MAS and MTI.
National Development Minister Chee Hong Tat said at a Feb 13 press conference that the increase in demand for growth capital from companies in Asia, as well as the supply of capital from investors who want to diversify their portfolios, presents an opportunity for Singapore to benefit as a trusted financial hub.
While Singapore already has parts of the growth capital ecosystem in place to support companies at different stages of the capital raising cycle, Mr Chee said that there is now a need to take a broader view of the “entire value chain” to better support companies entering the market at earlier stages of development.
The measures recommended by the new work group are expected to improve the range of funding options companies can tap for growth, such as the private markets.
“If we look at the new opportunities that are coming up versus some of the existing capabilities and resources that we have, I think there are still some gaps that we need to plug. This is what the work group hopes to focus on,” Mr Chee said.
“Different components of the ecosystem will reinforce one another, and that network effect will then enable us to be able to grow the range of services and options for companies and investors.”
Mr Chee added that the work group is prepared to take calculated risks and be more innovative when introducing new schemes to strengthen the growth capital market.
It will draw on lessons from the MAS Equities Market Review Group, which helped develop initiatives such as the $5 billion Equity Market Development Programme (EQDP), and the planned Nasdaq and Singapore Exchange Global Listing Board to simplify dual listings
Entrepreneurship in Singapore could also receive a boost, as a stronger growth capital ecosystem would attract more founders – both local and from around the region – to set up their companies here and scale their businesses out of Singapore.
This would be especially beneficial for Asian companies that may not be able to raise capital easily in their home countries.
“Supporting entrepreneurs in setting up their companies in Singapore and raising capital here will be a good addition to our economic growth strategy,” Mr Chee said.
The new work group aims to complete its review by the end of 2027.
It was revealed after Prime Minister Lawrence Wong announced in Budget 2026
Capital raising in the Singapore market also came under the spotlight in Parliament earlier in February
In response, Mr Chee acknowledged that Singapore has to look into how the market can facilitate companies’ growth.
He added that without good shareholder returns, company growth will not be achieved, and that both go together.
