Singapore’s stock market is showing signs of sustained recovery, with key indicators pointing to increased activity and investor interest. Minister for National Development and deputy chairman of the Monetary Authority of Singapore (MAS) Chee Hong Tat told Parliament , , that progress has been “good” since a review group was established to revitalize the market, and that initial successes are becoming apparent.
The average daily traded value of securities on the Singapore Exchange (SGX) grew by more than 20 percent year-on-year to almost S$1.8 billion (US$1.4 billion) in November of last year. The average daily traded value for the entirety of 2025 was the highest it has been since 2010. A significant increase in market participation was also noted, with 100 Singapore-listed stocks experiencing at least S$1 million in average daily trading turnover – a 40 percent increase compared to August 2024.
These gains are occurring alongside a broader effort by MAS to inject capital and encourage investment in the local equities market. In July 2025, MAS announced an initial allocation of S$1.1 billion to three asset managers – Avanda Investment Management, Fullerton Fund Management, and JP Morgan Asset Management – as part of a larger S$5 billion Equity Market Development Programme unveiled in February 2025. The program aims to boost liquidity and attract new listings to the SGX.
The positive momentum extends to initial public offerings (IPOs). More than S$2.4 billion was raised through IPOs in 2025, representing the highest amount since 2019 and a substantial rebound in activity. The total market capitalization of listed companies also surpassed the S$1 trillion mark.
Minister Chee highlighted that the growth has benefited both large-cap and small-to-mid-cap companies. This suggests that the MAS initiatives are having a broad-based impact, rather than solely benefiting larger, more established firms.
The discussion in Parliament followed an adjournment motion filed by Members of Parliament Louis Chua and Jamus Lim, both from the Workers’ Party, who questioned whether the current measures are sufficient to achieve lasting change. They proposed additional steps, including requiring companies to demonstrate how they will drive higher shareholder returns, holding companies accountable for disclosure lapses, and encouraging greater participation from local retail investors.
Mr. Chua specifically pointed to the example of the Tokyo Stock Exchange, which has implemented a structured disclosure framework with specific requirements and publishes a monthly list of companies based on their disclosure status, creating “constructive market pressure” for improved performance. He argued that Singaporean companies currently face no such mandatory requirements to demonstrate commitment to improving fundamentals, despite the expectation that the S$5 billion Equity Market Development Programme will generate returns.
The MAS’s actions are also prompting investors to reassess their strategies. Capital inflows are driving a search for value beyond traditionally favored bank shares, with attention shifting towards small and mid-cap stocks. JPMorgan Chase & Co. Analysts suggest that these smaller companies are likely to attract increased investor attention as disbursements from the Equity Market Development Program accelerate. A potential rotation into sectors such as industrials, property, and communications is also anticipated, with investors betting that these firms will benefit from a more favorable interest rate environment.
Even before the full S$5 billion is deployed, investors have begun to focus more closely on local stocks, according to market observers. The Straits Times Index reached an all-time high of 4,273 points on July 24, 2025, following the initial announcement of the S$1.1 billion allocation. As of Wednesday, the index had risen for 13 consecutive days, matching its longest winning streak since 2004, closing at 4,231.28 with year-to-date gains of nearly 12 percent.
While analysts acknowledge the positive developments, they also caution that clarity is still needed regarding the execution strategies of the appointed asset managers and the level of research support they will provide. MAS has emphasized that the asset managers will have autonomy in their investment decisions.
