Singapore’s EQDP attracts more than S$1 in private capital for every public dollar invested: Chee Hong Tat

[SINGAPORE] The Equity Market Development Programme (EQDP) has attracted more than a dollar in private capital for every dollar of public funds invested, as trading activity picks up and investor participation broadens in the local equities market.

Fund managers in the EQDP – now in its third phase – have been able to crowd in private capital into Singapore equities at a ratio of more than 1:1 to date, said Minister for National Development Chee Hong Tat.

“The external global environment has become more challenging, but Singapore’s fundamentals remain sound,” he said at the 2026 Investors’ Choice Awards by the Securities Investors Association (Singapore), or Sias, on Wednesday (Oct 21).

“We know markets will go through cycles; so what matters is that we stay focused on rebuilding broader and deeper capabilities over the medium to longer term.”

Singapore has been stepping up efforts to strengthen its equities market and boost trading activity. It announced the third batch of EQDP fund managers in September, bringing cumulative programme allocations to S$5.4 billion across 14 asset managers.

This has resulted in broader market participation beyond Singapore’s largest stocks.

Turnover among the Next 50 constituents is up by 93 per cent from 2025, with a growing number of small and mid-cap stocks now able to absorb institutional flows, noted Chee, who is also deputy chairman of the Monetary Authority of Singapore (MAS).

The minister said Singapore’s market needs three things to sustain investor confidence from its current growth momentum: well-governed companies; well-informed investors; and strong bridges between the two that foster constructive engagement.

For new listings, Singapore is “working closely with market participants to build a pipeline of quality issuers” for the Global Listing Board, although Chee noted that this is “still early days”.

Other efforts include streamlining the listing process and consolidating listing review functions under the Singapore Exchange Regulation (SGX RegCo), with MAS and SGX RegCo aiming to effect changes in January 2027, he said.

For individual investors, Singapore will also boost the initial public offering ecosystem by developing IPO guides tailored to the needs of investors in Singapore – similar to practices in markets with strong retail participation.

These guides, Chee said, are not intended to recommend an investment, but rather “complement... investors’ own assessment of the risks and the research available to them”.

Furthermore, Singapore is reviewing regulations to boost independent research on IPOs for more informed investor participation.

“Investor empowerment should not end when a company lists,” said Chee. “Investors need continued access to meaningful information and opportunities for constructive engagement with the companies they invest in.”

Meanwhile, good corporate governance is also key to turning near-term growth momentum into lasting investor confidence, he said.

The Corporate Governance Advisory Committee’s review of the Code of Corporate Governance is due for public consultation next week, he noted.

Focus areas of the review include the code’s meaningful implementation; uplifting board quality and independence’ and putting greater emphasis on strategic, long-term shareholder value.

Transboundary haze

Good corporate governance is particularly pertinent given the current haze situation, as it means that companies are conducting business responsibly and within the law, Chee noted.

“Being a listed company brings with it responsibilities to your shareholders, your stakeholders and, if I may say so, the wider community,” he said.

Singapore will take the necessary enforcement actions against errant firms and individuals, which could affect the value of investments and the interests of their shareholders instead of just the companies themselves, he said.

This comes after Senior Minister K Shanmugam on Monday said that Singapore will use “every legal and regulatory lever” to confront companies linked to the haze.

Moves could include legal, regulatory and economic measures to exert pressure on these companies where it matters, such as on their bottom lines, access to financing and standing with investors.

Chee said that Sias can complement the actions of regulators, SGX and banks to “speak up on behalf of investors and seek answers from the companies concerned”.

“Building a vibrant equities market is a long-term effort – and it is not one that the government can do alone.”