Budget 2026: PM Wong says MAS to inject S$1.5 billion to boost Singapore equities participation

SINGAPORE: Prime Minister Lawrence Wong announced on 12 February 2026 that the Monetary Authority of Singapore (MAS) will inject an additional S$1.5 billion into the Financial Sector Development Fund (FSDF) to increase investor participation in Singapore equities.

Speaking during his Budget 2026 speech, he said the top-up would also support the development of Singapore’s fund management industry and strengthen the broader capital markets ecosystem.

The FSDF, established in 1999, provides grants to firms and individuals in the financial services sector. Its objective is to promote Singapore as an international financial centre.

The latest S$1.5 billion boost builds on the Equity Market Development Programme (EQDP), a S$5 billion initiative launched by MAS in July 2025 to enhance liquidity and vibrancy in the local stock market.

So far, S$3.95 billion has been allocated under the EQDP to nine fund managers for investment in Singapore equities. MAS is expected to announce a third tranche of fund managers later in 2026.

Prime Minister Wong said industry response to the EQDP had been encouraging. He added that the new injection into the FSDF would further strengthen Singapore’s equities market.

The EQDP has coincided with renewed activity in the initial public offering (IPO) market. In 2025, 16 companies listed on the Singapore Exchange (SGX), beginning with local software-as-a-service provider Info-Tech in July.

This followed a period of limited mainboard listings between 2023 and 2024, when IPO activity had slowed significantly.

As part of a broader strategy to strengthen Singapore’s enterprise ecosystem, Prime Minister Wong also announced a second S$1.5 billion tranche of the Anchor Fund.

The Anchor Fund, established in 2021 as a co-investment vehicle between the Government and Temasek, supports high-growth enterprises and market leaders in their public fundraising efforts in Singapore. It is managed by 65 Equity Partners, Temasek’s wholly owned investment platform.

Prime Minister Wong said that beyond deep and vibrant capital markets, Singapore requires a strong pipeline of high-quality companies that choose to build, grow and anchor themselves locally.

He noted that this pipeline should include both home-grown enterprises and promising international firms.

Additional measures recommended by a MAS review group to streamline listing requirements for high-growth companies are being implemented. The upcoming SGX-Nasdaq dual-listing bridge is also expected to enhance the depth and vibrancy of the public equities market.

According to Prime Minister Wong, these initiatives will provide more pathways for enterprises to grow and scale from Singapore.

Enterprise funding was identified as another key priority. He said that start-ups today have significantly improved access to early-stage capital compared with a decade ago, with solid progress in venture and seed funding.

However, he observed that global tightening of growth-stage capital has created challenges for firms, particularly in the deep technology sector, in securing larger and longer-term funding to scale.

To address this, Prime Minister Wong announced that S$1 billion will be set aside to enhance the Startup SG Equity scheme.

The scheme provides initial capital to catalyse and crowd in private investment for promising start-ups, supporting their growth and expansion.