Budget 2026: Quick takes on EQDP top-up, support for startups

[SINGAPORE] The Monetary Authority of Singapore’s (MAS) Equity Market Development Programme (EQDP) will receive further support via a S$1.5 billion top-up to the Financial Sector Development Fund, said Minister for Finance Lawrence Wong in his Budget speech on Thursday (Feb 12).

The EQDP is a S$5 billion initiative launched by MAS in February last year. It aims to boost local asset management, and in turn raise investor interest in Singapore’s equities market.

A higher allocation to small and mid-cap Singapore Exchange-listed stocks is a priority for the programme. JP Morgan Fund Management, Fullerton Fund Management, Lion Global Investors and Avanda Investment Management are some of the appointed fund managers.

In addition, co-investment fund Anchor Fund will see more support via a second S$1.5 billion tranche. This is a co-investment between the Singapore government and Temasek like the first tranche.

The aim of the Anchor Fund is to attract and anchor high quality listings, upon its launch in 2021.

Additionally, Wong, who is also the prime minister, said that S$1 billion will be portioned for the Startup SG Equity Scheme, as its scope broadens to cover growth-stage companies.

MORE ON BUDGET 2026

Visit our Budget 2026 site for more stories and analyses.

Explore Now

The scheme focuses largely on early-stage funding, and aims to offer initial capital to catalyse and crowd in private funding for startups with promise.

Such early traction in capital formation, and of small and mid‑cap stocks points to a “virtuous cycle taking shape”, said Ng Yao Loong, head of equities of the Singapore Exchange Group.

“Beyond the quantum of capital, the impact lies in disciplined deployment through active managers, alongside holistic efforts to strengthen liquidity, deepen research coverage and widen investor participation,” he said on Thursday.

SEE ALSO

Budget 2026: S$1.5 billion top-up to expand EQDP; EDB to attract high-growth companies

What else do such moves imply for the Republic’s financial spaces in 2026? Here are some quick takes from analysts and observers on these initiatives:

Jimmy Seet, capital markets partner at PwC Singapore

• “The latest budget initiatives...signal a strong government commitment to invigorate the equities market.”
• “Businesses with capital markets ambitions should seize this moment by strengthening governance and investor relations, and ensuring market readiness. This alignment will not only facilitate successful market entry, but also enhance the overall vitality of Singapore’s capital markets.”
• “Together with other measures from the Equity Market Review Group, institutional participation is set to rise, creating attractive opportunities for companies eyeing initial public offerings (IPOs).”

Jayden Vantarakis, head of Asean equity research at Macquarie Capital

• “We see the S$1.5 billion EQDP top up as a positive step, and affirms the government and MAS’ commitment to developing the market.”
• “The current allocations have crowd-in requirements of at least one for one, so this should raise the total deployment to at least S$13 billion when its fully implemented.”
• “More IPOs or dual listings will also provide more diversity in the market. Funds are hungry for new ideas, and we have had a very positive response to our recent new initiations.”

Lee Kuan-Huei, associate professor at Singapore Institute of Technology

• “Firms today are navigating persistent cost pressures, tighter funding conditions and the need to adapt business models quickly, which makes access to patient capital and strategic support increasingly important.”
• “Growth-stage enterprises – beyond financing – require capabilities in design, branding, digitalisation and market positioning to remain competitive as they secure the local market and expand overseas. Strengthening support at this stage helps promising businesses move from innovation to sustainable value creation.”

Ajay Kumar Sanganeria, partner and head of tax at KPMG Singapore

• “The proposals will provide short-term support, and prepare companies for long-term sustainable growth, for companies to see Singapore as a choice (location to list).”

Chan Yew Kiang, EY Asean and Singapore IPO leader

• “Liquidity has improved and valuations have increased since the launch of the EQDP, accompanied by a rise in IPO activity. We do expect the momentum to continue in 2026, barring any major geopolitical conflicts.”
• “An injection to the Anchor Fund is also likely to improve Singapore’s competitiveness in attracting fast-growing companies to base their headquarters here. However, this market remains dynamic, and speed to growth and profitability are critical for survival.”
• “Continued support, both in funding and governance expertise, will be important as companies mature and access the capital markets.”

Kexin Lim, partner specialising in tax and entrepreneurial and private business at PwC Singapore

• “A significant injection of an additional S$1 billion into Startup SG Equity is a strong signal of Singapore’s commitment to nurturing innovation through times of disruption and uncertainty.”
• “Extending support beyond early‑stage ventures to include growth‑stage companies alongside Singapore’s current schemes to attract high quality entrepreneurs strengthens the startup pipeline and reinforces Singapore’s position as a leading hub for scale‑up capital.”

Chiu Wu Hong, partner and head of private enterprise at KPMG Singapore

• “Growth stage companies are investments in Singapore’s future competitiveness. By helping innovative firms scale from Singapore, we are unlocking new opportunities for Singaporeans to take on high value roles, build deep skills, and grow meaningful careers.”

For more of BT’s Budget 2026 coverage, go to bt.sg/budget26