The Monetary Authority of Singapore (MAS), via the Equities Market Review Group, has announced a first package of measures to strengthen the competitiveness of Singapore’s equities market, combining liquidity and ecosystem initiatives with tax incentives and proposed regulatory changes to the listing framework. The measures include an SGD 5 billion Equity Market Development Programme and proposals to move toward a more disclosure-based regime with a streamlined listing review timeline of six to eight weeks. On the demand side, MAS and the Financial Sector Development Fund will invest alongside selected fund managers under the Equity Market Development Programme, with mandates focused on Singapore stocks and active strategies that go beyond index constituents, and MAS will begin evaluating eligible fund managers and strategies over the next few months. Additional steps include a tax exemption for fund managers’ qualifying income from funds investing substantially in Singapore-listed equities, a tightening of the Global Investor Programme Family Office option so that, for new applicants, qualifying investments are narrowed to equities listed on approved Singapore exchanges, and an expansion of the Research Development Grant Scheme under MAS’ Grant for Equity Market Singapore to increase research coverage and dissemination with a greater focus on mid- and small-cap enterprises. On the supply side, the package includes a 20% corporate income tax rebate for new primary listings and a 10% rebate for new secondary listings with share issuance, capped at SGD 6 million per Year of Assessment for issuers with market capitalisation of SGD 1 billion or more and SGD 3 million for those below SGD 1 billion, alongside an enhanced 5% concessionary tax rate on qualifying income for new fund manager listings subject to distributing a portion of profits as dividends. The regulatory proposals would consolidate listing suitability and prospectus disclosure reviews in Singapore Exchange Regulation, streamline qualitative admission criteria to reduce scope for merit-based judgment, simplify prospectus requirements including around financial information and conflicts, ease secondary listings by allowing use of a primary-listing prospectus with minimal adaptations, and adopt a more targeted approach to post-listing queries, alerts and trading suspensions, including consulting on removing the financial Watch-List. The regulatory proposals require changes to statutory requirements and Singapore Exchange listing rules and will proceed through public consultation, with MAS and Singapore Exchange Regulation planning to issue detailed consultations by mid-2025 and to finalise measures after reviewing feedback. The Review Group’s next phase, to be completed by end-2025, will assess further options including shareholder engagement programmes, market structure changes such as reducing board lot sizes, enhanced investor recourse avenues, post-trade custody efficiency improvements, and cross-border partnerships.

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