Monetary Authority of Singapore (MAS) has designated S$1.1 billion to three fund managers under its S$5 billion Equity Market Development Plan (EQDP), aiming to energize Singapore Exchange liquidity — particularly in small- and mid-cap stocks — and foster sustainable institutional participation.

1. Strategic Overview

On July 21, MAS confirmed appointments of Avanda Investment Management, JPMorgan Asset Management, and Fullerton Fund Management for the initial deployment. It’s the first tranche of a broader S$5B initiative designed to revive domestic equities, especially beyond mega-cap stocks. The programme is part of MAS’s ongoing stock market review in place since mid‑2024. Reuters+6Reuters+6CNA+6

2. Execution Mechanisms and Selection Criteria

MAS selected firms based on alignment with EQDP objectives: enhancing liquidity, expanding asset management capacity, and crowding in third-party capital. With over 100 organizations expressing interest, the policy signal of active co‑investment is as vital as the capital itself. Reuters+1CNA+1

3. Expected Market Reaction and Capital Flow Effects

Following the announcement, mid-cap stocks rose rapidly, and SGX trading volumes saw a short-term uptick. Analysts anticipate stronger interest from institutional investors and family offices over the coming quarters. The fund managers, working across strategies like ESG, sector-focused value, and tech-growth, are expected to catalyze secondary listings and revive price discovery mechanisms.

4. Structural Considerations and Risks

  • Will capital remain patient or rotate out early?
  • Can liquidity gains extend beyond pilot periods?
  • How transparent will MAS be regarding performance measurement and reporting?

MAS has pledged regular reviews and will likely disclose progress by years’ end.

5. Observer Commentary

MAS has also committed additional funding for equity research subsidies—up to S$6,000 per report—to boost analyst coverage, particularly for under‑researched mid-cap names. These non‑capital incentives amplify the programme’s structural intent. Sahm+11Reuters+11CNA+11Sahm+1Medium+1

Editor’s Note:
By injecting capital via EQDP, MAS takes a bold step toward deepening Singapore’s capital market ecosystem. Success hinges on long-term engagement by fund managers and credible progress in broadening investor bases.

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mas‑eqdp, singapore‑equity‑liquidity, market‑revival, asset‑manager‑capital