In a strategic move to enhance the vibrancy of its domestic capital markets, the Monetary Authority of Singapore (MAS) announced a S$1.1 billion allocation to three asset management firms under its Equity Market Development Plan.
1. Policy Initiative Overview
On July 21, 2025, MAS confirmed it would distribute S$1.1 billion to Avanda Investment Management, JPMorgan Asset Management, and UOB Asset Management. This investment forms part of its broader S$5 billion Equity Market Development Plan (EMDP), aimed at strengthening Singapore’s position as a regional financial hub.
2. Why This Matters
The EMDP seeks to promote long-term institutional participation, boost mid-cap stock activity, and nurture financial talent locally. MAS's decision follows recent consultations with market participants concerned about declining liquidity in non-blue-chip stocks.
3. Market Response and Strategy
Singapore’s Straits Times Index rose 1.3% following the announcement. Analysts expect this to attract further private capital inflows and foster a more resilient equity ecosystem. The selected fund managers are expected to implement strategies spanning ESG, technology, and value-growth investing.
4. Potential Risks
While the policy is welcomed, concerns remain regarding execution. Will institutional capital stay long-term? Can these injections truly improve liquidity in a sustained manner? MAS has pledged periodic reviews and transparent reporting.
Editor’s Note:
This move reflects Singapore’s commitment to remaining regionally competitive. The balance of long-term development with short-term market impact will define the program’s success.
Tags:
mas-injection, singapore-equity-market, emdp-fund-allocation, liquidity-support
About the Author
Marks Toms – Editor-in-Chief
Marks oversees editorial policy, compliance, and fact-checking at bankaccountsopen.
Read more articles