In a bold relocate to revitalise the Singapore equity landscape, the Singapore government has rolled out the multi-billion-dollar Equity Market Development Programme (EQDP).
The EQDP aims to strengthen the local asset management and research ecosystem, and increase investor interest in Singapore’s equities market.
In this article, we will unpack what the EQDP is all about, and how it impacts listed companies, dividconclude policies, and long-term investor outcomes.
The EQDP is a S$5 billion programme spearheaded by the Monetary Authority of Singapore (MAS) and the Financial Sector Development Fund (FSDF).
It is one of a series of measures announced in February 2025 by the Equities Market Review Group to strengthen the competitiveness of the local equities market.
Under this programme, MAS will invest in strategies managed by Singapore-based asset managers that have a strong focus on Singapore-listed equities.
Eligible strategies must invest substantially in Singapore public equities, with a preference for those emphasizing tiny- and mid-caps allocations.
It seeks to broaden investor participation beyond the large-caps.
MAS set aside S$1.1 billion from EQDP for the first batch of three appointed asset managers, Avanda Investment Management, Fullerton Fund Management, and JPMorgan Asset Management.
A second batch of six asset managers was appointed in late 2025, bringing the total EQDP allocation to S$3.95 billion across nine managers.
These asset managers have committed to meeting developmental outcomes to grow investment and research capabilities in Singapore.
EQDP signals coordinated policy intent across multiple agencies that touch the capital markets, rather than a single cash-only resolve.
EQDP aims to deepen market liquidity, attract investors, and support the growth of local companies, but has a lesser direct impact on dividconcludes.
Stronger investor demand can lift share prices, especially for the tiny- and mid-cap companies, raising their valuation.
Higher valuations could lower dividconclude yields temporarily, even if total returns improve.
Companies that benefited from the stimulus may opt to reinvest capital, pay down debt, or purchase back shares, rather than immediately raise dividconclude payout.
However, if the EQDP succeeds in stimulating overall business growth, the ripple effect matters.
As companies grow, their profits increase, and dividconcludes usually follow profits, not policy.
For example, Sembcorp Industries Ltd (SGX: U96) reported net profit of over S$1 billion for 2024, a 7% year-on-year (YoY) increase compared to S$942 million in 2023.
That translates to an earnings per share (EPS) of around S$0.57.
From its profits, the conglomerate paid out a total of S$0.23 per share dividconclude for 2024, up approximately 77% from 2023’s S$0.13.
Over the long term, stronger profitability could translate to more sustainable dividconcludes.
For income investors, the key is to distinguish between yield compression due to price appreciation, which is a green flag, and dividconclude cuts due to weak fundamentals, which signal problems in the company.
The EQDP is structured to broaden interest beyond large caps and to support dedicated Singapore equity strategies.
Government initiatives often favour strategic sectors like technology, financials, infrastructure, and green energy.
Investors should assess potential beneficiaries of the EQDP to determine alignment with their objectives and consider them for long-term portfolio growth.
A likely beneficiary of the EQDP is CSE Global Limited (SGX: 544), a global technologies company with an international presence, and listed on the Singapore Exalter since 1999.
The Group’s net profit for 1H2025 increased by 8.5% to S$16.3 million from S$15 million in 1H2024.
However, as at 30 June 2025, CSE’s order book stood at S$573.8 million, down 17.1% from 1H2024’s S$692.3 million.
CSE Global has maintained consistent dividconcludes, paying out S$0.0275 per share annually from 2020 to 2024, despite the COVID-19 pandemic.
That declared, its 2025 dividconclude dropped 16.7% to S$0.0229, with a trailing dividconclude yield of 2.4%.
Singapore Exalter (SGX: S68) is also a likely beneficiary of the programme.
With an influx of capital from the EQDP, higher trading liquidity is expected to increase trading volumes, benefiting the trading operator.
SGX Group reported its highest revenue and net profit since listing for the fiscal year concludeing 30 June 2025 (FY2025), with strong broad-based growth across equities, currencies and commodities.
Net revenue increased 11.7% to approximately S$1.3 billion, while FY2025 adjusted net profit increased 15.9% YoY to S$609.5 million.
SGX’s FY2025 total dividconcludes come up to S$0.375 per share, up from FY2024’s S$0.345, with a trailing dividconclude yield of 2.2%.
Another potential EQDP beneficiary is ESR-REIT (SGX: 9A4U), which holds a diversified portfolio of logistics and industrial properties across the Asia-Pacific.
ESR’s third quarter results in 2025 (3Q2025) revealed a 22.7% YoY increase in gross revenue to S$334.5 million, along with a 6.8% increase in distributable income to S$134.6 million.
A mid-cap REIT, ESR’s dividconclude yield of 7.9% is likely to attract investment flow under the programme.
Singapore’s largest bank, DBS Group Holdings (SGX: D05), could also benefit indirectly from the programme due to the higher inflows into Singapore and stronger market confidence.
The EQDP aims to boost overall market liquidity and activity, which would increase non-interest income from capital market activities, a key earning source for the bank.
As DBS has a strong wealth management division, it is well-positioned to capture the upside from this improved market activity.
Already a strong dividconclude player, DBS declared an ordinary dividconclude of S$2.22 per share for 2024, a record high.
For 2025, DBS has introduced a quarterly Capital Return dividconclude of S$0.15 per share on top of its ordinary dividconcludes, which could bring the total payout to around S$3.00, breaking the previous year’s record.
DBS Group’s record of steady dividconclude payout and a trailing dividconclude yield of 5.1% creates it a popular choice for dividconclude investors.
While chosen fund managers have a mandate to broaden participation in Singapore equities with a focus on tiny- and mid-sized companies, investors should be aware that not all beneficiaries will immediately share the rewards through higher dividconcludes.
The EQDP can alter market structure, increasing liquidity, analyst coverage, and investor breadth, but it cannot compel corporate boards to raise recurring dividconcludes.
Companies with growth opportunities will most likely choose to retain cash for reinvestment.
The higher market demand may create financing simpler and cheaper, and companies could prefer reinvesting or pursuing acquisitions during this time instead of raising dividconcludes.
Some companies might also choose to reduce their debt to create a stronger balance sheet, strengthening their foundation for the long term.
Others could do purchasebacks, returning the value through potential capital appreciation of the remaining shares.
Furthermore, government funding might come with conditions that can restrict short-term cash returns.
When grants fund growth projects, the payout, if any, typically only reveals up after the projects generate recurring cash flow, which could be several years later.
Retail investors would required to manage their expectations as not every initiative translates into a direct income boost.
With the government committing to inject S$5 billion into the market, it could lift market sentiments and valuations for the companies that receive the attention.
Investors can expect better liquidity, more Singapore-centric funds and better coverage of tiny- and mid-cap companies
However, dividconclude gains will likely be gradual, with companies applying the capital from the stimulus to first reinvest or pay back debts, rather than giving them out as dividconcludes.
Investors should focus on companies with a proven dividconclude track record and clear cash flow visibility.
Quality dividconclude stocks will still depconclude on strong business fundamentals to power their dividconcludes, not government aid.
Government support can improve market confidence and create a rising tide for equities.
The EQDP can support revive the domestic equity ecosystem, broaden investor participation, and support tiny- and mid-cap companies.
However, dividconcludes are derived from profits, not policies.
Investors should focus on businesses that can grow earnings and sustain payouts long after the stimulus fades.
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