SGX–Nasdaq Bridge, Tax Incentives Featured in Singapore’s Completed Equities Review

Liquidity, Custody and Connectivity Take Focus in Latest Reforms

To boost demand for Singapore equities, MAS appointed six more managers under the S$5 billion Equity Market Development Programme, allocating S$2.85 billion to BlackRock, Amova Asset Management, AR Capital, Eastspring Investments, Lion Global Investors and Manulife Investment Management.

Total deployment now stands at S$3.95 billion, and the managers may participate in cornerstone allocations for new listings.

SGX will strengthen market making for newly listed and small to mid-cap stocks outside the Straits Times Index, consult on adopting broker custody accounts to modernise post-trade processes, and cut board lot sizes for shares priced above S$10 from 100 units to 10 units.

Connectivity measures will expand to include S$40,000 in grant support for each depository receipt issuance and higher funding for primary-listed and cross-listed ETFs.

The reforms include a 20 percent corporate income tax rebate for new primary listings and a 10 percent rebate for secondary listings.

Newly listed fund managers will qualify for a 5 percent concessional tax rate, while funds that invest at least 30 percent of their assets in Singapore equities will receive income tax exemptions.

Changes to the Global Investor Programme will require eligible Single Family Offices to deploy at least S$50 million into Singapore equities.

Chee said the reforms will help companies “articulate compelling value propositions and build a continuing partnership with investors focused on sustainable growth.”

Regulatory updates include removing the financial watch-list and replacing it with a requirement for issuers to disclose when they record three consecutive years of pre-tax losses.

MAS will also co-fund meritorious civil actions and allow designated representatives to bring action on behalf of investors in misconduct cases.

Market Activity Shows Signs of Rebound

Average daily trading value rose 16 percent year-on-year in the third quarter to S$1.53 billion, the highest since early 2021, while small and mid-cap turnover increased 88 percent quarter-on-quarter.

IPOs have raised more than S$2 billion so far this year.

MAS will form an implementation committee co-chaired by MAS managing director Chia Der Jiun and SGX chief executive Loh Boon Chye to oversee execution of the measures.

More details are expected in the first quarter of 2026.