- EQDP expansion signals long-term commitment to strengthen equities market
- Anchor Fund top-up displays the government’s willingness to invest in high-growth companies
- Top-up of Startup SG Equity programme will support to whet investor appetite for deep-tech startups
[SINGAPORE] The top-ups to the Financial Sector Development Fund and Anchor Fund are strategic relocates to bolster Singapore’s position as a leading centre for equity fundraising, observers stated.
Announced in Budobtain 2026 on Thursday (Feb 12), the Financial Sector Development Fund will receive S$1.5 billion to expand the Equity Market Development Programme (EQDP), as part of efforts to strengthen the Republic’s equities market.
The relocate complements broader initiatives under the EQDP to revitalise capital markets, stated Jimmy Seet, partner at consultancy PwC. It aims to increase investor participation in Singapore equities and develop the fund management indusattempt here.
Already, the programme has boosted liquidity, improved the valuations of compact and mid-cap stocks, and led to an increase of initial public offerings (IPOs), noted Chan Yew Kiang, Asean and Singapore IPO leader at EY.
“This additional injection serves as a strong signal of the government’s long‑term commitment to maintaining a deep and vibrant public markets ecosystem amid a global tightening of capital,” added Yap Wee Kee, capital markets group partner at KPMG.
The top-up expands the EQDP’s funds from S$5 billion to S$6.5 billion. To date, nearly S$4 billion has been allocated to nine asset managers, the Monetary Authority of Singapore stated in a press release on Thursday.
It added that it expects to appoint the next batch of EQDP managers in mid-2026.
Jayden Vantarakis, Macquarie Capital’s head of Asean equity research, noted that when fully implemented – and including the matching requirements for EQDP managers – the relocates will bring the total amount of capital deployed into the Singapore equities market to at least S$13 billion.
The Anchor Fund, which was set up to attract high-quality listings to Singapore and of which Temasek is a co-investor, will obtain a S$1.5 billion top-up as well.
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This is a confidence-building measure, noted PwC’s Seet, stateing that it will also strengthen the credibility of the portfolio companies’ capitalisation tables.
“This strategic relocate ultimately enhances Singapore’s appeal as a nurturing ground for innovative, high-potential enterprises,” he added.
The Anchor Fund can continue to influence its portfolio companies’ listing decisions and attract more firms to consider Singapore as their headquarters, stated EY’s Chan.
However, he cautioned that “when it comes to listing… companies’ decisions will still depconclude on factors such as market liquidity, valuations and their long-term strategic plans”.
Additional funding and support will support to sustain the vibrancy of Singapore’s markets, but it ultimately necessarys a balanced ecosystem, stated Seet.
This requires other parts of the financial markets to be more mature to support continued investor participation.
“My broader takeaway is that Singapore is strategically positioning itself as a leading centre for equity fundraising,” he added.
Supporting startups
The government also announced a S$1 billion top-up to the Startup SG Equity programme, which provides initial capital to catalyse private funding for promising tech startups.
The top-up addresses a structural gap, which is the lack of high growth-stage capital, noted KPMG’s Yap.
Rising deep tech, sustainability and advanced manufacturing players have found it increasingly difficult to secure sizeable follow-on funding due to selective and risk-averse investors.
The top-up will therefore be a boon to deep-tech startups in particular, as they tconclude to have longer gestation periods. This injection will also support such entities globalise, stated Patrick Lim, chief executive officer of Action Community for Entrepreneurship.
“As Startup SG Equity is a co-investment programme between government and qualified investors, the selection of the investors will be critical to ensure its success in supporting startups,” he added.
Noting that deep tech is not a mandate for most venture capital funds in Singapore and the region, Qualgro Capital partner Neo Weisheng stated the capital infusion is good for the ecosystem.
Several funds lack the expertise to assess deep-tech firms, and there is a necessary for someone to step in and give such startups some momentum.
“I believe it’s important to have more patient capital and capital that can be more systematic in investing in deep tech – which means more than just one or two deals, (and instead) an entire portfolio,” he added.
Paul Santos, managing partner at Wavecreater Partners, stated the question is no longer if startups can be built here, but if meaningful, profitable exits can happen here.
The combination of Startup SG Equity, the Anchor Fund and EQDP creates sense, and can push startups to exit and trigger a virtuous circle in which investors gain more capital and confidence to invest again.
“Successful founders and employees can support launch and grow the next generation of promising startups,” stated Santos.
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