Singapore central bank roped in JP Morgan, two others to manage stock market boost

SINGAPORE: Singapore is taking a new tack to revive its stock market, announcing a strategic S$5 billion initiative to attract investors and boost market participation.

The Monetary Authority of Singapore (MAS) has chosen three asset managers: Fullerton Fund Management, JP Morgan Asset Management, and Avanda Investment Management. These firms will lead an effort to refresh the local equity landscape.

Fullerton Fund Management is part of Seviora, a multi-asset management company owned by Temasek Holdings, Singapore’s state investment fund. Incorporated in 2003, it has offices in Shanghai, Jakarta, and Brunei.

JP Morgan Asset Management is headquartered in New York City and has offices in Tokyo, Hong Kong, and Singapore. Currently, it manages US$162 billion (S$218.7 billion) in the Asia Pacific.

Avanda Investment Management was founded in 2014 in Singapore by former GIC executives Ng Kok Song, Quah Wee Ghee, and Sung Cheng Chih. Temasek backs it significantly—it invested US$3 billion in Avanda’s Global Multi-Asset Fund. It has also secured funds from sovereign fund GIC and the Singapore Labour Foundation. Recent reports indicate it manages US$10 billion as of March 2025.

They will receive S$1.1 billion to develop investment strategies aimed at increasing market liquidity and drawing in a wider range of investors. The programme targets especially small and mid-sized companies that have struggled to gain investor attention.

In an interaction with the media, Chee Hong Tat, the Minister for National Development and Second Minister for Finance, commented: “We want to see more participation from retail investors. This isn’t about short-term trading, but about helping people build long-term investment portfolios.”

This move comes amid growing concerns about Singapore’s stock market, which has diminished compared to regional competitors. Over 100 global and local asset managers expressed interest in the programme, demonstrating strong enthusiasm within the industry.

Key features of the programme include:

• Dedicated funds focusing on Singapore-listed stocks
• Daily investment liquidity
• Chances for retail and institutional investors
• Strategies emphasising smaller, emerging companies

In addition to the investment programme, MAS is launching a S$50 million research support scheme. This funding will:

• Increase grants for equity research
• Support digital research distribution
• Develop research on private companies with strong Singapore ties

The goal goes beyond just injecting money into the market. Minister Chee highlighted the aim of creating a more robust, transparent, and accessible investment environment.

Fullerton Fund Management plans to launch a dedicated Singapore equities unit trust that covers stocks from various market capitalisations. Avanda Investment Management aims to create a “Singapore Discovery Fund” focused on small and mid-cap stocks with growth potential.

JP Morgan Asset Management has not disclosed any details, but according to its ASEAN equities team head, Pauline Ng, it will leverage its investment capabilities and local expertise to unlock opportunities in Singapore’s equities market.

This initiative adopts a deliberate approach to market development. By selecting specific asset managers and providing targeted support, Singapore aims to transform its equity market from a quiet exchange into a more vibrant investment hub. Future plans include selecting additional asset managers in late 2025 and 2026 after this first phase.

To the investing public, the establishment is making it clear that it is creating more ways to access stock market wealth.

The programme shows MAS’s commitment to keeping the financial centre competitive by addressing market challenges and creating new paths for investment growth.