Singapore has unveiled a set of strategic measures to rejuvenate its equities market, including targeting medium-sized companies and introducing tax incentives.

The proposals come from the Equities Market Review Group ( EMRG ), which the Monetary Authority of Singapore ( MAS ) established in August 2024 to come up with recommendations to enhance the competitiveness of the country’s capital markets.

Since its formation, the group has engaged a broad spectrum of stakeholders, including investors, fund managers, corporates, and regulators, to assess the challenges facing Singapore’s equities market.

The EMRG recognizes that global capital flows have been increasingly concentrated in major financial hubs, particularly in the United States, making it more difficult for other exchanges to compete for investor interest and liquidity.

Acknowledging these structural shifts, the EMRG has been focusing on positioning Singapore as a gateway for regional enterprises seeking to grow their capital and business.

Its latest recommendations target mid-sized companies that may not yet have access to major capital markets but could leverage Singapore’s well-regulated financial ecosystem as a stepping stone for expansion.

Among the key recommendations is the introduction of tax incentives designed to attract more listings and stimulate investment in the city-state’s capital markets. These proposals have now been formally submitted to the prime minister and the minister for finance.

The group is also looking at attracting secondary listings from companies already listed elsewhere but seeking an additional capital-raising venue in Asia.

The EMRG says it will provide a detailed update on its proposals on February 21, with further measures expected in the second half of the year.