Singapore’s central bank will launch a S$5 billion (US$3.74 billion) equity market development programme to help boost stock market liquidity and support the local fund management industry ecosystem.
This was among the first set of proposals that came recently from the Monetary Authority of Singapore’s (MAS) equities market review group.
The equity market development programme will be launched by MAS and its Financial Sector Development Fund. It will see MAS and the fund “invest with select fund managers that have the capabilities to implement investment mandates with a strong focus on Singapore stocks”, the central bank says in a statement posted on its website on February 24.
“These strategies should be actively managed, invest in a range of companies and not just index component stocks, and over time draw in investments from other investors.”
The central bank will begin evaluating eligible fund managers and strategies over the next few months.
MAS set up the equity market review group last August to propose measures to enhance the attractiveness of the local stock market. The group is chaired by Chee Hong Tat, Singapore’s second minister for finance.
The group’s first set of proposals unveiled earlier this month also includes corporate income tax rebates for Singapore-based companies seeking primary or secondary listings in the city state, offering a 5% concessionary tax rate to fund management firms, and expanding the central bank’s research development grant to include coverage of pre-initial public offer companies.
The second set of proposals is expected to be announced in the second half of the year.
