Singapore Strengthens Equities Market: Exciting New Tax Incentives and Regulatory Reforms Unveiled
Singapore’s equities market is set to undergo substantial enhancements with a robust array of measures designed to boost its competitiveness and appeal to both investors and companies. The Equities Market Review Group has announced these initiatives, which were highlighted in the 2025 Budget speech by the Prime Minister and Minister of Finance.
Key Initiatives to Enhance Singapore’s Equities Market
Among the most significant changes is the introduction of the S$5 billion Equity Market Development Programme (EQDP), developed by the Monetary Authority of Singapore (MAS) and the Financial Sector Development Fund (FSDF). This program aims to empower fund managers to invest across a wide range of Singapore stocks, thereby boosting trading liquidity and the overall dynamism of the equities market.
Tax Incentives and Regulatory Reforms
The EQDP is supported by a tax exemption for fund managers on qualifying income from substantial investments in Singapore-listed equities, fostering a more robust fund management ecosystem.
- Adjustments to the Global Investor Programme (GIP) to encourage capital inflows, especially targeting new Family Office applicants.
- Expansion of the Research Development Grant Scheme under the Grant for Equity Market Singapore (GEMS), focusing on mid- and small-cap enterprises.
New Fiscal Incentives for Companies
To further attract companies, new fiscal incentives have been introduced:
- A 20% corporate income tax rebate for new primary listings.
- A 10% rebate for secondary listings.
- Enhancement of a 5% concessionary tax rate on qualifying income for new fund manager listings.
Streamlining the Listing Process
The Review Group’s measures also aim to simplify the listing process:
- Consolidation of listing and prospectus disclosure reviews under Singapore Exchange Regulation (SGX RegCo).
- Reduction of merit-based judgment in new listings.
- Streamlining of prospectus requirements to enhance efficiency.
These regulatory adjustments are intended to align with international standards, facilitating faster and more transparent listings.
Conclusion: Strengthening Singapore as a Global Financial Hub
These strategic enhancements reflect Singapore’s commitment to refining its equities market framework, thus reinforcing its status as a leading global financial hub. The full implementation of these measures is set for detailed consultation by mid-2025, which is expected to attract more quality listings and improve investor confidence through enhanced regulatory practices and market infrastructure.
For more information on Singapore’s financial regulations, visit the Monetary Authority of Singapore.
