Singapore’s equities market is poised for significant enhancement with the introduction of a comprehensive set of measures aimed at increasing its competitiveness and attractiveness to both investors and companies.
Announced by the Equities Market Review Group, these initiatives include tax incentives and various regulatory and structural reforms outlined in the 2025 Budget speech by the Prime Minister and Minister of Finance.
Key among the proposed changes is the launch of the S$5bn Equity Market Development Programme (EQDP) by the Monetary Authority of Singapore (MAS) and the Financial Sector Development Fund (FSDF). This initiative will empower fund managers with the capacity to invest in a broad spectrum of Singapore stocks, thereby enhancing the trading liquidity and overall dynamism of Singapore’s equities market.
The EQDP is complemented by a tax exemption for fund managers on qualifying income derived from substantial investments in Singapore-listed equities, aimed at fostering a more robust fund management ecosystem.
Further supporting the market’s appeal, adjustments to the Global Investor Programme (GIP) will encourage more capital inflows into Singapore-listed equities, focusing particularly on new Family Office applicants. Additionally, the expansion of the Research Development Grant Scheme under MAS’ Grant for Equity Market Singapore (GEMS) targets to build a solid investor base, with a special emphasis on mid- and small-cap enterprises.
On the supply side, new fiscal incentives such as a 20% corporate income tax rebate for new primary listings and a 10% rebate for secondary listings have been introduced. These measures are designed to make Singapore an even more attractive destination for companies looking to go public. The enhancement of a 5% concessionary tax rate on qualifying income for new fund manager listings further adds to the appeal.
Adopting a more pro-enterprise regulatory stance, the Review Group’s measures include consolidating listing and prospectus disclosure reviews under the Singapore Exchange Regulation (SGX RegCo), reducing the scope for merit-based judgment in new listings, and streamlining prospectus requirements. These regulatory adjustments aim to make the listing process more efficient, adhering to international standards while facilitating faster and more transparent listings.
These strategic enhancements signal a robust effort by Singapore to refine its equities market framework, thereby strengthening its position as a leading global financial hub. The full implementation of these measures, set for detailed consultation by mid-2025, will likely attract more quality listings and bolster investor confidence through improved regulatory practices and market infrastructure.
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