The Monetary Authority of Singapore placed S$1.45 billion with five global asset managers on 29 September, the third batch under its S$6.5 billion Equity Market Development Programme and a bet that fresh mandates can deepen liquidity on Singapore Exchange listings.
Minister for National Development Chee Hong Tat, who serves as MAS deputy chairman, announced the names at the SuperReturn Asia conference: Amundi, Franklin Templeton, HSBC Asset Management, M&G Investments and Natixis Investment Managers. Each firm must deploy capital toward Singapore-listed equities and research capacity under programme rules tied to the Equities Market Review Group report published in November 2025.
How the programme fits the local market push
MAS launched EQDP at S$5 billion before expanding the envelope to S$6.5 billion as policymakers sought to reverse years of thin turnover outside the banks and REITs complex. The first two batches, announced in May and November 2025, allocated S$1 billion across three houses and S$2.85 billion across six houses respectively. Tuesday's tranche leaves headroom for a fourth batch, which the authority said it will review through 2027.
Local managers already in the programme include Eastspring Investments and Fullerton Fund Management from earlier rounds, alongside global giants such as BlackRock. The mix is deliberate: MAS wants both domestic research depth and foreign portfolio flows that track the FTSE Straits Times Index and mid-cap names.
GEMS grant targets small and mid caps
Alongside the manager appointments, MAS committed S$20 million from the Financial Sector Development Fund to the new Grant for Equity Market Singapore market-making scheme. The grant, running until 31 December 2028, will initially cover about 80 eligible small and mid-cap stocks plus newly listed names, paying market makers to tighten bid-ask spreads.
Singapore Business Review reported that the authority will refresh the eligible list as liquidity improves. The grant is separate from EQDP capital but shares the same policy goal: make SGX prices discoverable enough that institutional investors stop routing orders only through the three local banks.
What investors watch next
The STI has traded above 5,700 points in September even as global risk assets wobble, partly on expectations that state-led capital will stick around. EQDP managers face reporting requirements on how much they invest locally versus hedging offshore. Retail investors will see the impact indirectly through tighter spreads on mid caps if GEMS market makers stay in the book.
MAS said proposals for the fourth EQDP cohort remain under review, giving managers that missed this round another window. For Singapore-listed companies, the practical test is whether the new mandates show up in quarterly shareholder registers — not just in press releases at Marina Bay conference halls.