MAS Allocates S$1.45 Billion to Five Asset Managers in Third EQDP Batch

The Quick Take

• Singapore's Monetary Authority allocated S$1.45 billion to five asset managers in its third EQDP batch
• The Equity Development Programme aims to build domestic fund management capacity in Singapore
• MAS also introduced a S$20 million market-making grant under its new Gems scheme
• The allocations signal Singapore's continued commitment to deepening its capital markets ecosystem

The Monetary Authority of Singapore allocated S$1.45 billion to five asset management firms in the third batch of its Equity Development Programme, announced by Second Minister for Finance Chee Hong Tat. The EQDP represents a deliberate strategy by Singapore's central bank and financial regulator to develop homegrown investment management capabilities and deepen the city-state's equity capital markets. Alongside the allocation, MAS introduced a new S$20 million market-making grant under its Gems scheme, designed to improve liquidity in Singapore-listed equities.

The market implications for Singapore's financial sector are positive. By directing significant capital to selected asset managers, MAS effectively seeds institutional demand for Singapore-listed stocks, which has historically been a structural weakness of the local equity market relative to other major financial centres. The market-making grant targets a specific friction point in the ecosystem, addressing concerns about liquidity thinness that can deter institutional participation in smaller-cap Singapore equities.

The EQDP programme is part of a multi-year initiative, and the third batch announcement signals sustained policy commitment. Forward signals to watch include the investment mandates of the five selected asset managers, particularly whether they focus on Singapore-listed equities or take a broader regional allocation approach. The success of the Gems market-making grant will be measured by improvements in bid-ask spreads and trading volumes for targeted securities on the Singapore Exchange.

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