Initiatives include a S$5 billion Equity Market Development Programme to strengthen the fund management ecosystem
Shares of the Singapore Exchange (SGX) jumped more than 5 per cent on Monday (Feb 24) morning following the announcement of initiatives to revive the stock market by a review group led by the Monetary Authority of Singapore (MAS).
They include a S$5 billion initiative, called the Equity Market Development Programme, which will channel the funds to asset managers with a “strong investment track record” and a focus on Singapore-listed equities, MAS said on Friday.
Beyond strengthening the fund management ecosystem, the S$5 billion injection also seeks to boost trading liquidity and encourage more research into Singapore-listed companies, said Enterprise Singapore executive chairman Lee Chuan Teck.
SGX shares last pared some gains to trade up 3.8 per cent at S$13.29 at 4.22 pm on Monday.
Another key measure unveiled on Friday is a revision to the Global Investor Programme (GIP), which grants permanent residency to eligible foreign investors.
The Economic Development Board, which administers the GIP, will adjust the requirements for family offices, requiring them to invest a more targeted proportion of their assets directly in Singapore-listed equities. Under the revised rules, single-family offices must allocate at least S$50 million of their assets under management (AUM) to equities listed on Singapore-approved exchanges.
Overall, prospectus requirements and listing processes will be streamlined, particularly in areas such as financial disclosures, interested-person transactions and conflicts of interest.
Friday’s announcements mark an update on the measures from the MAS review group, following its Feb 13 tax incentive proposals.
Formed last August, the review group comprises private-sector stakeholders and public-sector representatives. Its aim is to enhance the competitiveness of Singapore’s equities market by attracting investor interest, increasing the supply of quality listings and streamlining the regulatory process for initial public offerings.
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