Singapore to allocate US$856 million in kick-off of plan to boost stock market

Singapore plans to allocate about US$856 million to three asset managers, including JP Morgan Asset Management, as part of a broader effort to enhance liquidity and expand investor participation in the local stock market.

The other asset managers named for the initial phase of Singapore’s S$5 billion (US$3.9 billion) Equity Market Development Programme – which was first announced in February – were Avanda Investment Management and Fullerton Fund Management, according to a statement on Monday by the Monetary Authority of Singapore. The city state’s central bank said it received more than 100 applications for the programme.

The MAS said it would appoint additional asset managers in the fourth quarter to manage remaining funds. The central bank would also set aside S$50 million to strengthen local equity research and grow “a more vibrant listed product ecosystem”, the statement said.

The details mark the first progress update in months from a government-led task force that was formed to address the local equities market’s lagging performance in new listings and trading volumes compared with major regional peers.

“When we invited asset managers to put forth the proposals, we made clear to everybody that this is not just about injecting funds into Singapore’s equities market,” said Chee Hong Tat, minister for national development. “But we’re really looking at also how to develop our fund-management industry.”

In February, the equity market review group announced a raft of measures aimed at boosting the market. Other initiatives include requiring some family offices to deploy a portion of their assets into domestic equities and streamlining listing rules for companies seeking to go public on the stock exchange.