S$6.5B Boost: MAS Expands EQDP to Support Singapore Equities

11 Mar 2026

Singapore’s equity market received another policy tailwind following Budget 2026, with the government announcing a S$1.5 billion top-up to the Equity Market Development Programme (EQDP).

With this addition, the programme will expand from S$5 billion to S$6.5 billion, reinforcing efforts by the Monetary Authority of Singapore (MAS) to deepen liquidity and enhance the long-term appeal of Singapore’s equity market.

The expansion comes as Singapore continues broader efforts to revitalise its public markets and strengthen its position as a regional capital markets hub.

Meanwhile, geopolitical tensions in the Middle East have weighed on global markets, putting some downward pressure on equities. For Singapore-listed stocks, this combination of policy support and softer market prices could create an interesting environment for investors to watch.

What Is the EQDP?

The Equity Market Development Programme (EQDP) is an MAS initiative aimed at strengthening Singapore’s stock market by increasing institutional investment into Singapore-listed equities.

Under the programme, MAS allocates capital from its Financial Sector Development Fund (FSDF) to selected asset managers running strategies focused on Singapore stocks. These actively managed strategies are designed to broaden investor participation beyond the largest companies.

MAS partners Singapore-based asset managers with strong investment track records, while encouraging them to grow investment expertise and equity research capabilities locally. The initiative therefore aims not only to deploy capital but also to strengthen the broader ecosystem supporting Singapore’s equity market.

Launched in 2025 with an initial S$5 billion, the programme has already begun deploying capital. To date, about S$3.95 billion has been allocated to nine asset managers, with further allocations expected as the programme expands.

Supporting Smaller Companies in the Market

A key objective of the EQDP is to broaden investment beyond Singapore’s largest companies and encourage greater institutional participation in small- and mid-cap stocks, which have historically faced lower liquidity and more limited research coverage.

Many EQDP-funded strategies are expected to include meaningful exposure to smaller companies, while maintaining diversified portfolios across different market capitalisations.

By channeling long-term institutional capital through professional fund managers, the programme aims to improve market liquidity, price discovery, and investor participation across a broader range of Singapore-listed companies.

Large Caps Still Form the Core of Institutional Portfolios

While the programme places emphasis on expanding participation beyond blue chips, large-cap Singapore equities are still likely to form an important part of institutional portfolios managed under the EQDP.

Benchmark heavyweights in the Straits Times Index (STI) often serve as anchor holdings for institutional strategies due to their liquidity and market representation.

Besides, banks and S-REITs are commonly featured prominently in Singapore equity portfolios are banks and S-REITs and they form major pillars of the local market.

Singapore Banks

DBS Group Holdings (D05) +25.75% (1Y)
Oversea-Chinese Banking Corporation (O39) +25.34% (1Y)
United Overseas Bank (U11) -2.62% (1Y)

S-REITs

CapitaLand Integrated Commercial Trust (C38U) +15.76% (1Y)
Frasers Centrepoint Trust (J69U) +3.76% (1Y)
Keppel DC REIT (AJBU) +10.24% (1Y)

STI and S-REITs ETFs

State Street SPDR STI ETF (ES3) +27.38% (1Y)
Amova Singapore STI ETF (G3B) +27.31% (1Y)
Lion-Phillip S-REIT ETF (CLR) +6.50% (1Y)

Strengthening Singapore’s Equity Ecosystem

Beyond improving liquidity, the EQDP also aims to strengthen Singapore’s broader capital markets ecosystem.

By anchoring capital through professional asset managers, the initiative seeks to encourage greater institutional participation, support stronger research coverage, and catalyse additional third-party investment into Singapore-listed companies.

As more capital is deployed under the programme, the expansion of the EQDP signals continued policy support for Singapore’s equities market and its role as a key financial centre in Asia.

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