Is S$5 billion enough? Panel weighs impact of EQDP on Singapore equity valuations
There is agreement that the sum has kickstarted things, and that the challenge would be to keep up the momentum built in 2025
[SINGAPORE] The idea of allocating S$5 billion annually to fund managers under the Equity Market Development Programme (EQDP) came up during a panel discussion on Friday (Jan 9), as participants debated whether its current scale was sufficient to lift valuations and attract quality listings.
The discussion, titled “EQDP is the beginning, not the end” at the inaugural Singapore Equities Forum 2026, gathered four of the nine asset managers appointed under the EQDP, a government-backed initiative aimed at strengthening Singapore’s equity market.
A broker in the audience pointed out that for firms to consider listing in Singapore, high valuations are critical. He argued that while the S$5 billion allocated to the programme is a good starting point, it might not be enough, and suggested that a S$5 billion annual disbursement could drive valuations higher.
Responding to that, Lai Yeu Huan, panellist and head of Asian equities at the newly appointed EQDP manager Amova Asset Management Asia, said that the S$5 billion figure should be viewed in the context of daily market activity, which exceeds more than S$1 billion. “The question is, after this S$5 billion, then what (happens)?” he asked, and added that it becomes a matter for those who have been awarded mandates to convince people who allocate money to invest alongside them.
Lai further noted that the success of the initiative would depend not only on engaging retail investors, but also on attracting major institutional allocators. Once such institutional investors commit, smaller investors are likely to follow suit.
He stressed that the S$5 billion does not have to come exclusively from policy funds. Rather, it should be taken as part of a broader ecosystem that also includes contributions from private investors and institutional capital.
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Lai’s comments come after the MAS appointed a second batch of six asset managers under EQDP last November to manage a combined S$2.85 billion under the programme. The six are Manulife Investment, Amova Asset Management, AR Capital, BlackRock, Eastspring Investments and Lion Global Investors.
The first batch of three managers was appointed in July 2025 with funding of S$1.1 billion. They are JP Morgan Asset Management from the US, and local firms Fullerton Fund Management and Avanda Investment Management.
While the EQDP is already helping to catalyse co-investment and follow-on inflows, Chan Kum Kong, head of capital market development at the Singapore Exchange (SGX), pointed out that the key challenge lies in sustaining the momentum.
Fellow panellist and portfolio manager at Lion Global Investors Kenneth Ong noted that small and mid-cap stocks often perform better when large-cap stocks are doing well – a trend observed in other markets such as the US.
He said that the strong performance of large caps creates a tailwind that attracts global funds, and that Singapore’s safe-haven status has helped draw capital into the financial system. “As long as that continues, (it) creates a liquidity waterfall for the small-mid caps to perform,” he noted. This will benefit smaller companies and support broader market growth.
Essential role of brokers
The forum, organised by the Securities Association of Singapore with support from the SGX Group, attracted more than 200 investment professionals, including retail brokers, fund managers, family offices and other market participants.
Opening the event, SGX chief executive officer Loh Boon Chye pointed out the critical role of brokers in capital formation. “Brokers are essential connectors, linking companies with capital and building investor confidence through rigorous local research, strong distribution networks and deep market expertise,” he explained.
Alvin Tan, a member of the Monetary Authority of Singapore board and also Minister of State in the Ministry of National Development and Ministry of Trade and Industry, said that revitalising the Republic’s equity market would be a long-term effort.
“With your market expertise and strong local networks, you can raise the visibility of promising companies through research and coverage and investor dialogue such as today’s forum,” he told the audience. He noted that brokers help investors identify value in the market, reignite momentum and give business owners the confidence to raise capital.
He also highlighted that the true potential of Singapore’s equity markets extends beyond the Straits Times Index, with many promising companies still overlooked by investors. “The market reawakening is not just a sprint; it is a long-distance journey, and we must sustain the positive momentum seen in 2025,” he said.
He also mentioned that the Equity Market Implementation Committee, co-chaired by MAS and SGX, will be pivotal in steering this process, overseeing the implementation of the equities market review group’s recommendations, which were announced last November.
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