The Equities Market Review Group has introduced a comprehensive set of measures to bolster Singapore’s equities market, following extensive consultations with industry stakeholders. Announced on 21 February 2025, these measures include tax incentives and a $5b Equity Market Development Programme (EQDP) by the Monetary Authority of Singapore (MAS) and the Financial Sector Development Fund (FSDF).
The EQDP will see MAS investing with selected fund managers to focus on Singapore stocks, aiming to deepen trading liquidity and strengthen the local fund management ecosystem. Additionally, a tax exemption on fund managers’ qualifying income from Singapore-listed equities will support the launch and distribution of such funds.
To attract more capital inflows, the Global Investor Programme (GIP) will be adjusted to focus on equities listed on approved Singapore exchanges. The Research Development Grant Scheme will also be expanded to enhance investor interest in mid- and small-cap enterprises.
Further measures include a 20% corporate income tax rebate for new primary listings and a 10% rebate for secondary listings, alongside a 5% concessionary tax rate for new fund manager listings in Singapore. These incentives aim to attract quality listings and support local enterprises.
The Review Group also recommends a pro-enterprise regulatory stance, moving towards a more disclosure-based regime. This includes consolidating listing suitability and prospectus disclosures under Singapore Exchange Regulation (SGX RegCo) and streamlining listing processes to enhance efficiency.
MAS and SGX RegCo will issue detailed consultations on these proposals by mid-2025, with further initiatives expected by the end of the year. These efforts are designed to address current challenges and position Singapore as a competitive global equities market.
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