MAS Allocates S$1.45 Billion to Five Asset Managers in Third EQDP Batch: Total Deployment Reaches S$5.4 Billion

The Monetary Authority of Singapore (MAS) has appointed five asset managers — Amundi, Franklin Templeton, HSBC Asset Management, M&G Investments and Natixis Investment Managers — under the third batch of its Equity Market Development Programme (EQDP), deploying a further S$1.45 billion into Singapore’s equity market.

The announcement, made by Minister for National Development and MAS Deputy Chairman Chee Hong Tat at the SuperReturn Asia conference on 29 September 2026, takes total EQDP allocations to S$5.4 billion across 14 managers — 83% of the programme’s expanded S$6.5 billion war chest, following its top-up at Budget 2026.

Alongside the appointments, MAS committed S$20 million from the Financial Sector Development Fund to a new GEMS Market Making Grant aimed at tightening bid-ask spreads in roughly 80 small and mid-cap stocks outside the Straits Times Index.

What is the EQDP? A quick recap

The EQDP was launched in February 2025 as a flagship demand-side measure of the Equities Market Review Group, which MAS convened in August 2024 to revive the Singapore Exchange (SGX). Its twin objectives: develop Singapore’s local fund management industry, and channel sustained institutional capital into Singapore-listed equities — including cornerstone participation in IPOs.

EQDP deployment: the full picture so far

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The third batch brings a notably more international flavour than earlier rounds. In his SuperReturn Asia speech, Chee said these managers “bring with them global distribution networks, sources of capital, and expertise that strengthen the depth and dynamism of our public markets” — meaning EQDP money is now explicitly designed to pull in foreign capital alongside domestic allocations.

S$20 million GEMS Market Making Grant: liquidity for the “missing middle”

The second announcement targets a chronic weakness of the SGX: thin trading in its small and mid-cap segment. The new GEMS Market Making Grant will:

• Fund appointed market makers providing liquidity for an initial group of around 80 eligible stocks outside the STI, plus newly listed counters
• Run until 31 December 2028
• Aim for tighter bid-ask spreads, lower execution costs and stronger price discovery
• Review and expand the eligible list regularly

Chee described the target as the “middle segment” — stocks with sufficient trading activity to benefit from market-making support, but not the large, liquid STI constituents. Early signs suggest the broader reform push is working: average daily turnover in Q3 2025 rose 16% year-on-year to S$1.53 billion, the highest since Q1 2021, with IPO fundraising topping S$2 billion, according to MAS data cited by The Straits Times.

The bigger play: anchoring S$7 trillion of asset management in Singapore

Tuesday’s announcements were bookended by measures targeting Singapore’s asset management industry, which now oversees close to S$7 trillion across more than 1,300 managers — growing 7.5% annually over the past five years, per MAS’s August 2026 package:

1. Investment Management Track under the ONE Pass (from late January 2027, with the Ministry of Manpower) — applicants can meet the S$30,000 qualifying salary through a minimum S$15,000 fixed monthly salary plus variable, performance-linked components, reflecting industry compensation norms. Further details are expected at Budget 2027.
2. Tax exemption for profit-related returns from fund management services to qualifying funds, effective from Year of Assessment 2027.
3. A new MAS Hedge Fund Investment Programme to anchor leading hedge fund managers and their ecosystems (prime brokerages, ancillary services) in Singapore.

On licensing, Chee revealed MAS has received more than 500 fund management licence applications over the past three years, with a median approval time of 4.5 months in Q2 2026 — and the fastest approved in just 12 weeks — while pledging to streamline further without lowering standards.

What happens next?

• Batch 4: MAS is reviewing proposals now and expects to announce the next group of EQDP managers in 2027 — S$1.1 billion of the programme remains unallocated.
• Budget 2027: Details of the ONE Pass Investment Management Track, tax exemption and hedge fund programme.
• Market structure reforms: The SGX-Nasdaq dual listing bridge, reduced board lot sizes and the modernised post-trade custody model round out the Review Group’s implementation agenda.

Frequently Asked Questions

Which five asset managers were appointed in the third EQDP batch?

Amundi, Franklin Templeton, HSBC Asset Management, M&G Investments and Natixis Investment Managers, sharing S$1.45 billion.

How much of the EQDP has been allocated?

S$5.4 billion of S$6.5 billion across 14 managers in three batches. A fourth batch is under review for announcement in 2027.

What is the GEMS Market Making Grant?

A S$20 million grant (until end-2028) funding market makers in roughly 80 non-STI small and mid-cap stocks to narrow spreads and improve liquidity.

Can retail investors benefit?

Indirectly — tighter spreads and better price discovery lower trading costs for everyone, and EQDP managers’ funds may include counters retail investors already own.