Strengthening Singapore’s Equities Market – Completion of Market Review and Unveiling of New Measures

Introduction

In August 2024, the Monetary Authority of Singapore (“MAS“) set up an Equities Market Review Group (“Review Group“) to recommend measures to strengthen equities market development in Singapore. The Review Group was tasked to consider initiatives to improve the vibrancy of Singapore’s equities market, and study ways to galvanise greater private sector participation in this effort.

On 19 November 2025, the Review Group announced the completion of its review and the release of its final report (“Final Report“), which contains the full set of recommended measures to enhance Singapore’s equities market. On the same day, MAS introduced key new measures to give effect to the Review Group’s recommendations. This includes:

1. Dual listing: The establishment of a dual listing bridge between the Singapore Exchange (“SGX“) and the United States of America’s (“US“) Nasdaq;
2. Value Unlock Package: The launch of a S$30 million “Value Unlock” Package to help listed companies unlock shareholder value and deepen engagement;
3. Equity Market Development Programme(“EQDP”) asset managers: The appointment of the second batch of asset managers under the S$5 billion EQDP; and
4. Trading enhancements: Trading and market structure enhancements to strengthen market making, modernise post-trade custody, and reduce board lot size.

The initiatives and grants seek to strengthen Singapore’s growth capital ecosystem for quality companies and startups, presenting new opportunities for businesses, investors and market makers. Interested parties should thus consider the applicability of the new measures and how they may be fully utilised.

This Update highlights the recommendations in the Final Report and the new measures introduced by MAS.

Background

In conducting its review, the Review Group conducted extensive consultations with industry stakeholders to devise measures to strengthen the functioning of the Singapore equities market, and its attractiveness to investors and companies seeking to list and access growth capital.

On 21 February 2025, MAS shared the first set of measures proposed by the Review Group, which encompass the pillars of demand and supply, complemented with regulatory initiatives. For more information on the first set of proposed measures, please see our earlier Legal Update on “Measures Introduced to Strengthen Singapore’s Equities Market such as Financial Support, Tax Incentives and Streamlining Regulatory Framework Towards a More Disclosure-Based Regime“.

To facilitate the implementation of the proposed regulatory measures in the first set of proposed measures, on 15 May 2025, MAS and the Singapore Exchange Regulation (“SGX RegCo“) issued consultation papers on Streamlining of Prospectus Requirements and Broadening of Investor Outreach Channels and Shifting to More Disclosure- Based Regime, respectively. For more information on these consultations, please see our earlier Legal Update on “Boosting Singapore Equities Markets: Proposals for Streamlining Prospectus Requirements and Broadening Investor Outreach Channels, and a More Disclosure-Based Regime“.

The MAS consultation paper on Streamlining of Prospectus Requirements and Broadening of Investor Outreach Channels proposed changes in three broad areas:

1. Streamline the prospectus disclosure requirements for primary listings;
2. Simplify the process for secondary listings; and
3. Policy proposals to provide more flexibility and scope for engaging investors in the initial public offering (“IPO“)

As for the SGX RegCo consultation paper on Shifting to More Disclosure- Based Regime, the proposed changes have taken effect from 29 October 2025, when SGX RegCo revised the Singapore Exchange Securities Trading (“SGX-ST“) Mainboard Rules and Catalist Rules to streamline the listing admission criteria and adopt a more disclosure-based approach, while also recalibrating post‑listing interventions. For more information on this SGX RegCo consultation, please see our earlier Legal Update on “Towards a More Disclosure-Based Listing Regime – SGX RegCo Streamlines Listing Process and Post-Listing Oversight“.

To operationalise the proposed consolidation of listing suitability and prospectus disclosures review functions under SGX RegCo, on 29 October 2025, SGX RegCo issued a consultation paper on Consolidation of Listing Review Functions under SGX RegCo to seek feedback on changes to the relevant Mainboard Rules. SGX RegCo also sought comments on standing down the Listings Advisory Committee. For more information on this SGX RegCo consultation, please see our earlier Legal Update on “MAS and SGX RegCo Consult on Proposed Consolidation of Listing Review Functions under SGX RegCo“.

Final Report

On 19 November 2025, MAS announced the completion of the Review Group’s review and the release of its Final Report. The Final Report identifies a set of measures to strengthen the fundamental value proposition of Singapore’s equities market. This incorporates the first set of proposed measures announced in February 2025, as well as the new proposed measures.

Taken together, these measures aim to cultivate quality IPOs and inject investor interest, introducing a wider range of Singapore-focused funds to enhance institutional vibrancy and shareholder engagement, as well as broadening investor participation beyond benchmark index counters.

In this section, we summarise the full set of Review Group measures. The measures are categorised as follows:

1. Supply: Measures to improve attractiveness to quality listings.
2. Demand: Measures to increase investor interest and liquidity.
3. Regulatory: Measures to facilitate a shift towards a more disclosure-based listing regime and strengthen investor confidence.
4. Connectivity and Trading: Measures to develop cross-border partnerships and improve trading and settlement efficiency for investors.

Supply

The Review Group has recommended supply-side initiatives to jumpstart interest in Singapore’s equities market by improving the attractiveness of its markets to companies that are considering a listing venue.

1. Tax incentives to attract corporate and fund manager listings: The Government, in Budget 2025, accepted the Review Group’s recommendation to introduce tax incentives to attract growth companies and fund managers to list in Singapore. This includes:

• • The Listing Corporate Income Tax (“CIT”) Rebate, which features a 20% CIT rebate for primary listings, and a 10% CIT rebate for secondary listings, subject to relevant caps; and
  • The Enhanced Concessionary Tax Rate (“CTR”) for New Fund Manager Listings, which features a 5% CTR tier under the Financial Sector Incentive – Fund Management scheme for newly listed fund managers.

2. Enterprise financing support to strengthen growth of companies: The Review Group noted that the Government will continue to review and enhance its efforts to support the development of local enterprises, which can provide a pipeline of potential companies for listing. The latest enterprise financing efforts, as announced at Budget 2025, include new investment schemes (e.g. Private Credit Growth Fund and Long-Term Investment Fund).

3. Others

• • The Review Group noted that SGX RegCo is considering various measures to enhance the quality of listings and facilitate the transfer of Catalist companies with established track records to the Mainboard, while ensuring sufficient safeguards to maintain investor confidence.
  • The Review Group has also considered feedback on how to support smaller listed companies (including those on the Catalist) in calibrating its suite of recommended measures.

Demand

The Review Group has recommended the introduction of a programme to strengthen the local fund management ecosystem’s capabilities in Singapore equities.

1. Equity Market Development Programme

• • In February 2025, MAS announced the launch of the S$5 billion EQDP to develop Singapore’s local fund management industry and increase investor participation in Singapore.
  • In July 2025, MAS announced the appointment of the first batch of three appointed asset managers, with a combined initial sum of S$1.1 billion to be placed with them. On 19 November 2025, MAS announced the second batch of six appointed asset managers, with a combined allocation of S$2.85 billion. A third batch of EQDP managers is expected to be appointed in 2Q 2026.

2. Tax incentives: The Review Group has recommended tax incentives for fund managers investing substantially in Singapore-listed equities. The Government has since accepted the recommendations and announced tax exemptions in Budget 2025 for qualifying income from fund management and investment advisory activities related to funds that invest substantially in Singapore-listed equities. For new funds, a 30% minimum investment in Singapore equities is required, while for existing funds, a 30% minimum investment in Singapore equities and annual net inflows of at least 5% of preceding year’s assets under management (AUM) is required.

3. Global Investor Programme (“GIP”): The Economic Development Board has an existing GIP to attract entrepreneurs, business owners and high-net-worth individuals who are interested in making significant investments in Singapore. Following the Review Group’s recommendations, Option C of the GIP has been adjusted to support more capital inflows into Singapore’s equities market, requiring Single Family Office applicants under the GIP to deploy at least S$50m into Singapore equities.

4. Expansion of the Grant for Equity Market Singapore (“GEMS”) Scheme

• • The GEMS Scheme comprises a listing grant that defrays listing-related expenses for companies that undertake a public listing in Singapore, and a research development grant that provides funding to support greater research coverage of Singapore-listed companies. The Review Group had recommended enhancing the quality of equity research as a complementary measure.
  • In July 2025, MAS announced that it would set aside S$50 million to enhance the GEMS Scheme to strengthen the equity research ecosystem and complement the supply-side initiatives to grow the listed product suite in Singapore. The GEMS Scheme has also been extended till 31 December 2028.

Regulatory

The Review Group has recommended adopting a regulatory approach that is both pro-enterprise and pro-investor confidence. In particular, the Review Group has recommended a shift towards a more disclosure-based listing regime, while upholding sound international standards.

1. Consolidating listing suitability and prospectus disclosures review

• • Currently, the listing process in Singapore involves separate reviews by SGX RegCo and MAS respectively. The Review Group recommended that the listing review functions should be consolidated under SGX RegCo. In addition, listing applications need not be subject to the Listings Advisory Committee
  • As highlighted in our earlier Legal Update on “MAS and SGX RegCo Consult on Proposed Consolidation of Listing Review Functions under SGX RegCo“, MAS has issued a public consultation on 29 October 2025 on its proposals to consolidate the listing suitability and prospectus review functions under SGX RegCo.

2. Reducing the scope for merit-based judgment when admitting new listings

• • The Review Group recommended streamlining SGX RegCo’s qualitative admission criteria and focusing on ensuring that the disclosure of material issues is sufficient for informed decision-making by investors instead of taking a prescriptive approach to how issuers mitigate any risks prior to listing.
  • As highlighted in our earlier Legal Update on “Towards a More Disclosure-Based Listing Regime – SGX RegCo Streamlines Listing Process and Post-Listing Oversight“, SGX RegCo has since amended the SGX Listing Rules in support of the shift towards a more disclosure-based regulatory regime. This includes: (i) refining the quantitative admission criteria for the SGX-ST Mainboard – in particular, lowering the profit test threshold for new listings from S$30 million to S$10 million; and (ii) streamlining the qualitative admission criteriafor the SGX-ST Mainboard by shifting from prescriptive measures to requiring disclosure of material issues (e.g. internal control weaknesses, conflicts of interest).

3. Streamline prospectus requirements and listing processes

• • MAS will streamline the prospectus disclosure requirements for primary listings, by rationalising areas where the requirements may have been overly prescriptive, with a view to focus on core disclosure requirements that provide the most relevant material information to investors. MAS will also simplify prospectus disclosure requirements for secondary listings.
  • The Review Group has also supported measures to streamline the listing process: (i) MAS and SGX RegCo will commit to complete the review process within six to eight weeks under ordinary circumstances; (ii) SGX RegCo will consolidate the two-part Listing Admissions Pack into a single application pack; and (iii) MAS intends to allow issuers to engage potential investors earlier in the IPO process.
  • As highlighted in our earlier Legal Update on “Boosting Singapore Equities Markets: Proposals for Streamlining Prospectus Requirements and Broadening Investor Outreach Channels, and a More Disclosure-Based Regime“, MAS has issued a public consultation on the above set of proposals.

4. Adopting a more targeted post-listing approach

• • The Review Group has recommended adopting a more targeted approach to post-listing queries, alerts, and trading suspensions to reduce the potential for unintended and disruptive effects on trading and liquidity, while maintaining the overall framework of safeguards.
  • To implement the recommendations, SGX RegCo has effected changes to the SGX Listing Rules, including: (i) limiting trading suspensions to cases where there is clear evidence of going concern issues; (ii) prioritising private engagement with issuers on their disclosures, while continuing to require public disclosure of materially price-sensitive or trade-sensitive information; and (iii) removing the Financial Watch-list.

5. Enhancing investor recourse avenues: On 24 October 2025, MAS issued a consultation paper proposing to enhance investors’ ability to seek civil compensation for losses suffered from market misconduct. This includes: (i) facilitating self-organisation; (ii) providing access to funding; and (iii) reducing legal barriers to civil action. Please refer to our earlier Legal Update on “MAS Consults on Enhancing Investor Recourse Avenues in Market Misconduct Cases“.

6. “Value Unlock” Programme: MAS and SGX will launch a set of “Value Unlock” initiatives to help listed companies strengthen shareholder engagement and deliver sustainable shareholder value in the following areas:

• • Capabilities: MAS will allocate S$30 million to fund two grants to build competencies in corporate strategy, capital optimisation, and investor relations;
  • Communications: MAS will work with SGX to help companies communicate strategic plans more proactively, effectively and consistently; and
  • Communities: MAS and SGX will work with ecosystem partners to foster peer learning and collaboration through platforms like the Singapore Institute of Directors’ Chairpersons Guild.

7. Review issue manager due diligence requirements and guidelines: MAS and SGX RegCo are working with the industry to recalibrate existing due diligence requirements and guidelines, to provide more flexibility for issue managers to adopt risk-appropriate due diligence practices. MAS will also consider additional guidance to provide greater clarity on the level of due diligence that is expected for secondary listings.

Connectivity and Trading

1. Developing cross-border partnerships: The Review Group supports strong connectivity and linkages between SGX and overseas exchanges, including grants to defray the costs of issuing Depository Receipts (“DR“), facilitating the development of the product class in Singapore and strengthening cross-border partnerships.

• • In line with this, on 19 November 2025, SGX and Nasdaq announced a landmark collaboration to establish a dual listing bridge connecting both exchanges. This aims to attract quality growth companies in Asia with market capitalisation of S$2 billion and above, and which have an Asian nexus and global ambitions, to raise capital from investors in both markets.
  • SGX and Nasdaq have shared that the proposal is subject to the completion of relevant regulatory processes. MAS will work with SGX to consult on the regulatory framework for a set of prospectus disclosure requirements comparable to that in the US that will enable issuers to use a single set of offering documents, cutting regulatory friction and costs. The new Board is envisaged to go live around mid-2026.
  • The Review Group also welcomed the launch of the Indonesia-Singapore DR on 16 October 2025, which followed the successful launch of the Thailand-Singapore DR Linkage in 2023.

2. GEMS Scheme enhancements: In July 2025, MAS announced that the GEMS Listing Grant would be enhanced to support linkages with overseas exchanges, including: (i) S$40k grant support for each depository receipt issuance; (ii) S$250k grant support for primary-listed exchange-traded funds (“ETFs“); and (iii) S$180k for cross-listed and feeder ETFs.

3. Enhancing market-making ecosystems: The Review Group supports MAS’ and SGX’s plan to develop initiatives to help market makers build capabilities and scale up coverage, particularly for newly-listed stocks and next-tier small- and mid-cap stocks that can benefit from greater institutional interest. More details will be announced in Q1 2026.

4. Reduce board lot size: To facilitate wider retail investor access for higher-priced securities, SGCX plans to consult on a proposal to reduce the board lot size for securities that are trading above S$10, from 100 to 10 units. The lower minimum investment size would potentially broaden retail investor participation.

5. Modernise post-trade custody model

• • SGX has proposed to modernise Singapore’s post-trade custody model to facilitate wider investor adoption of broker custody accounts, including enabling omnibus accounts for SGX securities for Singapore investors. This could enable broader offering of value-added services for SGX securities, including portfolio management, fractional trading, and robo-investing.
  • This proposed broker custody account model aligns with the practice in major markets and encourages greater participation by internationally-active asset managers. SGX will consult on the relevant rule changes in 1Q 2026.

Concluding Words

The Review Group’s measures seek to strengthen the competitiveness of Singapore’s equities market and position Singapore as a well-functioning platform for local and regional enterprises to access global growth capital as they develop and scale. The Final Report has stated that, with certain measures having been implemented, early indicators point to renewed interest in Singapore’s equities market. Trading activity has strengthened in recent months, and IPO activity has also rebounded significantly.

MAS has indicated that it will establish an Equity Market Implementation Committee to drive effective implementation of the Review Group’s measures over the next 12 to 24 months. The Committee will oversee implementation, adapt measures to market conditions, and identify new opportunities for growth.

For further queries, please feel free to contact our Team as set out on this page.

For more information, please see the following:

• • Review Group Completes Equities Market Review, Unveils SGX-Nasdaq Dual Listing Bridge, S$30 million “Value Unlock” Package, and Second Batch of EQDP Asset Managers
  • Equities Market Review Group Final Report: Measures to Strengthen the Competitiveness of Singapore’s Equities Market