MAS to boost Singapore’s standing as enterprise financing hub with S$75m grant

THE Monetary Authority of Singapore (MAS) is launching a S$75 million grant for equity market Singapore (GEMS) in February to help enterprises seeking to raise capital through Singapore’s equity market.

Minister for Finance and MAS board member, Heng Swee Keat, announced the three-year initiative at the UBS Wealth Insights conference on Monday. GEMS will have three components – a listing grant to help defray initial public offering (IPO) costs for companies seeking a listing on the Singapore Exchange (SGX), a research talent development grant to enhance Singapore’s research coverage by grooming equity research talent, and a research initiatives grant to support crowd-sourced initiatives to boost Singapore’s equity research ecosystem.

The quantum for listing grants will vary depending on the enterprise sector and its market capitalisation. For example, enterprises in a new tech sector with a minimum market cap of S$300 million could receive co-funding of 70 per cent of eligible listing expenses, with the grant capped at S$1 million.

Meanwhile, enterprises from all sectors with no minimum market capitalisation could receive co-funding of 20 per cent of eligible listing expenses, with the grant capped at S$200,000.

The research talent development grant will co-fund locals in two ways – 70 per cent of the salaries for fresh graduates hired as equity research analysts, and 50 per cent of the salaries for re-employed experienced equity research analysts.

Ng Yao Loong, assistant managing director at MAS, said: “Singapore has been working to enhance our private and public markets so that domestic and international growth enterprises are able to access different types of capital best suited to their needs. GEMS will help strengthen Singapore’s position as the go-to venue in Asia for enterprises seeking growth financing.”

GEMS, which is funded under the Financial Sector Development Fund (FSDF), will commence from Feb 14. More details will be released closer to the date.