MAS allocates S$1.45 billion to five asset managers in third EQDP batch: Chee Hong Tat - The Business Times

[SINGAPORE] The Monetary Authority of Singapore (MAS) will allocate S$1.45 billion to five asset managers under the latest round of its Equity Market Development Programme (EQDP), taking total allocations under the initiative to S$5.4 billion out of its S$6.5 billion.

The five managers appointed in the third batch are Amundi, Franklin Templeton, HSBC Asset Management, M&G Investments and Natixis Investment Managers, said Chee Hong Tat, minister for national development and deputy chairman of MAS, at the SuperReturn Asia conference on Tuesday (Sep 29).

Chee added that MAS will also commit S$20 million from the Financial Sector Development Fund to a market making grant under the Grant for Equity Market Singapore (Gems) scheme, aimed at improving trading liquidity in Singapore-listed stocks.

The Gems Market Making Grant will support market makers in providing liquidity for an initial group of around 80 small and mid-cap stocks, as well as newly listed stocks, until Dec 31, 2028.

These measures are part of Singapore’s efforts to strengthen its equities market, following the Equities Market Review Group’s final report in November 2025.

MAS said the latest batch of managers will draw on their global distribution networks to bring in new sources of international capital seeking exposure to Singapore and the region, which helps broaden investor participation in the country’s equities market.

Under EQDP, MAS allocated S$1.1 billion to three asset managers in its first batch in July 2025, followed by S$2.85 billion to six managers in November. With the latest appointments, S$5.4 billion has been allocated across 14 managers.

The programme was expanded earlier this year from S$5 billion to S$6.5 billion, with MAS reviewing proposals for a fourth batch of asset managers to be completed in 2027.

As for the new market making grant, it aims to facilitate tighter bid-ask spreads, reduce execution costs and strengthen price discovery.

The list of eligible stocks will be reviewed regularly to cover additional stocks that can benefit from enhanced market making support to improve price discovery. Chee said the scheme will target the “middle segment” of small and mid-cap stocks with sufficient trading activity.

Over time, this can enhance market quality and trading liquidity, attracting greater investor interest in these stocks, he said.

The minister also announced that MAS and the Ministry of Manpower will introduce a Investment Management Track under the Overseas Networks & Expertise Pass (ONE Pass) from late January 2027.

This comes as MAS earlier announced in August that it is looking to add a slew of new measures to sharpen Singapore’s asset management proposition – comprising a new tax-exemption scheme, a hedge fund investment programme and a work-pass track to attract foreign talent.

Chee said that to better reflect compensation practices in the industry, applicants under the new Investment Management Track will be allowed to meet the ONE Pass qualifying salary of S$30,000 through a combination of a minimum fixed monthly salary of S$15,000, and other variable components of compensation.

The proposed changes, he said, provide greater flexibility to attract and anchor asset management talent in Singapore, while ensuring that the ONE Pass continues to target global leaders and senior investment professionals who can contribute significantly to Singapore’s asset management industry.

“We have received strong interest from asset managers since the announcement in August,” said the minister. “They have given us feedback that the measures are very welcome and will position Singapore strongly to grow the asset management sector.”

He noted that further details will be shared during Budget 2027.

In his speech, the minister noted that Singapore’s asset management industry has grown strongly, with close to S$7 trillion in assets managed by more than 1,300 asset managers here.

Alongside this growth, our capabilities have broadened and deepened across both public and private markets, he said.

The Republic hosts seven of the top 10 global private market managers, alongside managers spanning strategies from buyouts and growth equity to private credit, infrastructure, real estate, venture capital, secondaries and hedge funds.

“Many managers use Singapore as a hub for regional investment activities and decision making, with their regional leadership based here.”

Chee also said MAS would continue to streamline the licensing process for fund managers establishing or expanding their operations in Singapore.

The regulator has received more than 500 applications for fund management licences, reflecting the strong interest in Singapore as a base for investment management, he said.

The median licence approval time was four and a half months in the second quarter of 2026, and applicants with established track records and experienced investment teams will receive decisions sooner, he noted, with the quickest application being approved within 12 weeks.

“I have asked the MAS team to continue to streamline our approval process and further shorten the waiting time for applicants, while upholding high standards that are aligned with Singapore’s reputation as a trusted financial centre,” he added.

Together, he said, these efforts will deepen institutional and retail participation in Singapore equities, making the public markets a more effective destination for listings, financing, and exits within the broader capital ecosystem.

“Our goal is to make Singapore the place in this region where capital can connect with opportunities and create the next generation of growth.”

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