Singapore’s S$5 Billion Equities Lifeline (Equity Market Development Programme: EQDP

Singapore’s equity market has long grappled with structural challenges—thin research coverage, limited investor interest beyond blue-chips, and a valuation discount compared to regional peers. The Monetary Authority of Singapore (MAS) is tackling these head-on with the S$5 billion Equity Market Development Programme (EQDP), a multi-year initiative designed not as a quick fix but as a durable framework to reinvigorate the local bourse. Fund managers describe it as “a right and progressive move” with measures rolled out “in doses by doses,” signalling a thoughtful, adaptive strategy that evolves with market conditions. Launched earlier in 2025, the EQDP channels capital into asset management and research ecosystems, with an initial S$1.1 billion allocated to three prominent managers—Avanda, Fullerton, and JPMorgan Asset Management. These firms are mandated to focus predominantly on Singapore-listed equities, particularly mid- and small-cap names often overlooked by institutional investors. Complementing this, a S$50 million boost to the Grant for Equity Market Singapore (GEMS) aims to deepen coverage of under-researched firms and pre-IPO entities. The goal? Broaden market breadth, enhance liquidity, and restore confidence in Singapore as a vibrant equity hub.

At a recent SAC Capital Connect panel, industry leaders emphasised the programme’s long-term orientation. “The programme… has been designed with durability in mind, and will adapt as market conditions evolve,” noted panellists including Vincent Toe of ICH Asset Management. This adaptability is key—unlike one-off stimulus, the EQDP responds to shifting dynamics, whether through relaxed listing rules, cross-border trading partnerships, or shorter settlement cycles.Fullerton Fund Management, one of the appointed managers, has already launched the Fullerton Singapore Value-Up A Acc SGD fund—the first under the initiative. Drawing inspiration from Japan and Korea’s successful “Value-Up” reforms, it targets companies committed to unlocking shareholder value through higher return on equity (ROE), asset disposals, or growth strategies that exceed cost of capital. “The fund seeks companies that are able to ‘Value-Up’ through unlocking of shareholder value and through driving increased Return on Equity,” explains Fullerton. This active, high-conviction approach spans all market caps but maintains a clear Singapore focus, differentiating it from broader regional mandates.

iFAST Research has identified eight potential EQDP winners using a robust screening framework: financial resilience (debt-to-equity <1.0), ROE above the STI’s 10-year average (~9%), forward EPS growth >10% annually, reasonable valuations, homegrown leadership, and alignment with national growth sectors like advanced manufacturing and healthcare.The shortlist includes:ComfortDelGro – Global transport leader with strong contract wins in Australia and Singapore.

While challenges remain—global volatility, competition from Hong Kong and Tokyo—the EQDP marks a pivotal shift. By incentivising research, attracting third-party capital, and promoting corporate governance reforms, MAS is laying the foundation for a re-rating of Singapore stocks. Investors now have structured vehicles to access undervalued opportunities, while companies face growing pressure to prioritise shareholder returns.The message is clear: this isn’t just about injecting capital—it’s about building a more competitive, inclusive, and resilient equity market for the long haul.