Regulatory Reforms and Market Incentives Announced to Revitalise Singapore’s Equities Market

The Monetary Authority of Singapore (MAS), in coordination with the Singapore Exchange (SGX), recently announced the first set of measures, along with public consultations, designed to enhance the competitiveness of the SGX’s equities market. These measures­, proposed by the Equities Market Review Group (EMRG), a high-level industry panel that convened last year, reflect Singapore’s push to reinvigorate equity fundraising and trading activity on the SGX.

OVERVIEW OF THE ANNOUNCED MEASURES

This LawFlash provides an overview of the announced measures, which include the following:

S$5 billion Equity Market Development Programme

MAS will deploy S$5 billion via selected fund managers to invest in Singapore-listed equities. This programme is intended to incentivise fund managers to attract increased interest from both retail and institutional investors, with the objective of deepening trading liquidity, enhancing price discovery, supporting fair valuations following initial public offerings (IPOs), and expanding investor participation beyond index-linked securities.

Tax Incentives to Encourage Listing and Investment

Singapore’s Budget 2025 introduced a suite of tax measures to support capital markets activity. These measures include the following:

• A one-time corporate income tax rebate (20% for qualifying new primary listings; 10% for qualifying new secondary listings), capped at S$6 million for issuers with a market capitalisation of more than S$1 billion and S$3 million for issuers with a market capitalisation of less than S$1 billion
• A 5% concessionary tax rate for eligible fund management companies listing on the SGX, subject to the distribution of a portion of their profits as dividends
• Adjusted conditions under the Global Investor Programme, requiring new family offices under the programme to allocate at least S$50 million exclusively in Singapore-listed equities

Expanded Grant Schemes for Listing and Research

The Grant for Equity Market Singapore scheme will be expanded to include research coverage of pre-initial public offering (IPO) companies, enhance the focus on mid-cap companies, and increase dissemination through digital platforms. Further details are expected in mid-2025.

Streamlined Regulatory Framework for Listings

It was also highlighted that a series of proposed regulatory reforms would be released for public consultation by mid-2025, including the following:

• Consolidating prospectus and listing admission review under Singapore Exchange Regulation as the single regulatory authority
• Transitioning further towards a disclosure-based regime by reducing prescriptive criteria in the listing process
• Simplifying prospectus disclosure requirements for secondary listings and shortening IPO approval timelines to 6–8 weeks
• Allowing issuers to engage with potential investors earlier in the IPO process
• Refining post-listing supervision with more calibrated regulatory interventions
• A proposed removal of the financial watch list
• Limiting trading suspension of listed companies

PUBLIC CONSULTATIONS ON THE PROPOSED REFORMS TO THE REGULATORY FRAMEWORK

In line with the announced measure to streamline the regulatory framework for listings, both MAS and SGX Regulation (SGX RegCo) have released consultation papers seeking comments on proposed reforms.

MAS Public Consultation

On 15 May 2025, MAS launched a public consultation to seek feedback on proposals to streamline prospectus disclosure requirements under the Securities and Futures (Offers of Investments) (Securities and Securities-based Derivatives Contracts) Regulations and broaden investor outreach channels for initial public offerings. The consultation closes on 14 June 2025.

Key amendments include, among others, the following:

• Streamlining prospectus disclosure requirements and simplifying process for secondary listings
  • For primary listings: Existing regulations are to be refined with a focus on more targeted and meaningful investor relevant disclosures and to ensure that the effort needed to compile requisite information is commensurate with the informational value to investors. For example:
    • A shift from prescriptive and/or technical requirements for disclosure in relation to, among others, conflict of interests and capacity and utilisation of production facilities, which will allow issuers to have flexibility to focus on the substance of their disclosures
    • Requiring interim financial statements in a prospectus only if the most recent full-year financials are more than 9 months old at the time the prospectus is lodged, allowing for a longer IPO launch window
    • In lieu of third-party attestations required for profit forecasts included in the prospectus, it is proposed that the board of the issuer provides this attestation
  • For secondary listings: Amendments are proposed to largely align prospectus requirements with International Organization of Securities Commissions (IOSCO) standards, which will allow issuers to use their offer documents lodged in their home markets (which are recognised exchanges) for Singapore offerings with minimal adaptations
• Providing more flexibility and scope for engaging investors in the IPO process
  • Allowing the presentation of oral or written material about the intended IPO to institutional and accredited investors before the lodgement of its preliminary prospectus, subject to meeting certain conditions
  • Permitting the dissemination of the preliminary prospectus and presentation of oral or written material on matters contained in the preliminary prospectus to retail investors upon the lodgment of such prospectus, subject to meeting certain conditions
  • Expanding pre-registration communication boundaries to allow for the disclosure of the anticipated timing, manner and purpose of an offer before prospectus registration

SGX RegCo Public Consultation

On 15 May 2025, SGX Regulation (SGX RegCo) released launched a public consultation to seek feedback on changes to rules on listing admission and post-listing disclosures. The consultation closes on 14 June 2025.

Key amendments include, among others, the following:

• Streamlining of qualitative admission criteria towards a more disclosure-based regime
  • Reducing reliance on prescriptive listing criteria while enhancing disclosure requirements to facilitate greater market determination
  • Removing requirements on the resolution or proposed resolution of conflicts of interests and confirmations on non-materiality of internal control weaknesses and compliance with laws and regulations and implementing disclosure requirements instead
  • Excluding requirement for profit projections to be covered by auditors, in line with the MAS proposed amendment described above
• Changes to quantitative admission criteria
  • Removing the S$30 million minimum pre-tax profit criterion, or adjusting the criterion to fall within the range of S$10 million to S$12 million
• Reforming post-IPO market regulation
  • Removing the financial watch-list and requiring the announcement of third consecutive year of pre-tax losses
  • Implementing a 2-week default expiry for trade-with-caution alerts
  • Shifting away from public queries in favour of private queries when monitoring the continuing disclosure obligations of issuers
  • Recalibrating the threshold for the issue of trading suspensions to require clear evidence of going concern issues before intervention

KEY TAKEAWAYS

The announced measures and ongoing public consultations reflect the authorities’ commitment to enhancing the competitiveness of Singapore’s equities market. Prospective issuers considering a listing on SGX may stand to benefit from a more streamlined admissions process, as well as financial incentives in the form of grants and tax rebates. Fund managers, private equity firms, and family offices may find increased incentives to deploy capital into Singapore equities under the newly proposed measures.

Professional advisors should anticipate increased client interest in IPO planning, fund structuring to qualify for new tax benefits, and adjustments to disclosure standards under the evolving prospectus approval and listing admission regimes. Clients may also seek guidance navigating the updated grant and incentive eligibility criteria.

Further, the EMRG is considering other proposals under its second tranche of measures relating to (1) enhancing shareholder engagement, (2) attracting retail investors through structural changes like a reduction in lot sizes, (3) expanding investor recourse avenues, (4) improving post-trade custody efficiency, and (5) developing cross-border partnerships. The EMRG is slated to complete their work on those proposals by the end of 2025.

On 15 April 2025, Vin’s Holdings Ltd­, a Singapore-based integrated automotive solutions provider, became SGX’s first IPO of the year. Its shares were fully subscribed and closed 16.7% above the IPO price on debut.

Further, on 18 May 2025, it was reported that there has been an upsurge of interest from Chinese firms on listing in Singapore. While such interest may be attributable to the ongoing tariff war, the prospective issuers may have also taken into account the announced measures to stimulate the equities market.

These developments may suggest improving investor sentiment and confidence in Singapore’s equities market, possibly bolstered by the dedication of the authorities to advance its growth.