Singapore plans to allocate S$1.1 billion ($856 million) to three asset managers, including JPMorgan Asset Management, as part of a broader effort to enhance liquidity and expand investor participation in the local stock market.
The other firms named for the initial phase of Singapore’s S$5 billion Equity Market Development Program are two state-backed asset managers, Avanda Investment Management and Fullerton Fund Management, according to a statement issued Monday by the Monetary Authority of Singapore.
The MAS, which received more than 100 indications of interest from firms for the program, will appoint additional asset managers by 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," it said.
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The update marks the first progress report in months from a government-led task force formed in February to address the local equities market’s underperformance in new listings and trading volumes compared to regional peers. The new initiatives could provide fresh momentum and further boost the Straits Times Index, which has been hitting fresh records.
"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."
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Singapore’s stock market capitalization has shrunk in recent years, with delistings frequently outnumbering new listings. In 2024, four IPOs in Singapore raised a total of about $34 million — the second-lowest tally in over two decades, according to data compiled by Bloomberg.
But there are early signs of a turnaround in the IPO market. Earlier this month, NTT DC REIT debuted on the local bourse after raising $773 million in the country’s biggest initial public offering in eight years, while securing sovereign wealth fund GIC Pte. as a cornerstone investor.
"Momentum is building in our stock market beyond index names and in our listing pipeline," said Loh Boon-chye, chief executive officer of Singapore Exchange Ltd. "With collective efforts across the ecosystem, we can unlock stronger, more sustained capital flows."
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In its February announcement, the equity market review group introduced a raft of other measures, including requiring some family offices to deploy a portion of their assets into domestic equities and streamlining listing rules for companies.
The task force said it is still reviewing other initiatives. They include ways to boost shareholder engagement capabilities, reduce board lot sizes to facilitate wider retail investor access, and enhance efficiency of post-trade custody arrangement.
Fullerton Fund, which is backed by state-owned investment firm Temasek Holdings Pte, said in a statement it will launch a dedicated Singapore equities unit trust to draw investor assets from local and offshore sources. Avanda is also backed by Temasek.
