Latest news with #MAS
CNA
2 hours ago
- Business
- CNA
Retail investors hurt by market misconduct may get easier access to legal recourse
Retail investors facing losses due to market misconduct may soon find it easier to seek civil recourse. The Monetary Authority of Singapore (MAS) is looking at ways to enhance safeguards, including a grant scheme to cut back on legal costs. At the same time, new fund strategies and research support will also be rolled out to strengthen the local equities market. Deputy Chairman of the Global Finance and Technology Network Neil Parekh, who is also a member of the Equities Market Review Group, explains what structural issues MAS is aiming to solve and whether its latest moves would meaningfully shift investor sentiment or trading volumes. He also talks about some benchmarks we could look for to determine whether the efforts to revitalise Singapore's stock market is succeeding or not.
The Standard
9 hours ago
- Business
- The Standard
Singapore central bank to place S$1.1 billion with asset managers to boost stock market
The logo of the Monetary Authority of Singapore (MAS) is pictured at its building in Singapore in this February 21, 2013 file photo. Reuters
Arabian Post
11 hours ago
- Business
- Arabian Post
Singapore Channels S$1.1 bn into Stock‑Market Boost
Singapore's Monetary Authority has designated S$1.1 billion to three fund managers as the inaugural allocation of its S$5 billion Equity Market Development Programme. The scheme aims to invigorate the bourse and broaden market participation, focusing on smaller- and mid-cap equities. MAS selected Avanda Investment Management, JP Morgan Asset Management and Fullerton Fund Management for the initial round. Fullerton is part of state-owned Temasek. MAS indicated that the providers were chosen based on alignment with EQDP's goals and their capacity to enhance local asset‑management expertise. Over 100 applications were received, with MAS rolling out five‑year funding commitments in phases. The EQDP was unveiled in February in coordination with the Financial Sector Development Fund. Its mandate is to deploy capital through Singapore‑based managers investing primarily in domestic listed equities, with an emphasis on diversifying participation outside large‑cap stocks. ADVERTISEMENT Following the EQDP announcement in August last year, the Straits Times Index has surged 23.9% to July 18, 2025, according to MAS. Authorities believe that targeted investment injection could foster deeper liquidity, narrower bid‑ask spreads and more vigorous price discovery across the exchange. Analysts welcomed the move. One equity strategist said the programme signals a critical shift: 'MAS is using its balance sheet to catalyse private capital into under‑represented segments.' Market observers noted that while headline liquidity in the FTSE Straits Times Index is healthy, mid‑ and small‑cap names typically suffer from thin volume and wide spreads, deterring institutional and retail interest. JP Morgan's involvement is expected to bring global asset‑management experience to bear on local strategies. Avanda, a Singapore‑grown emerging‑markets specialist, and Fullerton, with sovereign backing, strengthen confidence that domestic competence will benefit from the infusion of global best practice. Details of each manager's mandate have not been disclosed, but MAS emphasised that performance will be measured not only by capital deployment but also progress in building domestic expertise in portfolio construction, trading infrastructure and market‑making behaviours. These elements are crucial to achieving sustainable liquidity gains. Experts point out that Singapore's programme mirrors efforts overseas, such as Japan's ETF purchases by its pension fund, but with a distinctive twist: the EQDP partners with private asset managers rather than buying equities directly. That design aims to stimulate skill transfer and innovation in execution capabilities. Further co‑investment rounds are expected later this year, with MAS reviewing submissions in stages to expedite capital deployment. The S$5 billion envelope is expected to span several tranches, signalling long‑term commitment to market enhancement. Since introducing a broad stock‑market review in August last year, MAS and its review group have identified several friction points, including limited participation by retail investors, dominance by large‑cap counters and constrained institutional activity in smaller names. EQDP is one among several initiatives aimed at remedying structural imbalances. Regulatory adjustments are also on the cards, with potential reforms covering short‑selling rules, stock‑lending frameworks and promoting algorithmic market‑making. MAS has indicated a willingness to consult key stakeholders, including retail brokerages and the Singapore Exchange, to create complementary regulatory enablers. Market participants have pointed out that EQDP funding alone may not be sufficient. A private fund‑operations specialist commented: 'Capital without market infrastructure enhancements risks being parked rather than deployed actively.' MAS' selection criteria emphasise capacity building—suggesting this concern has been taken into account. Beyond boosting trading volumes, the manoeuvre may help Singapore position itself as a regional equity hub. By fostering advanced trading strategies, tighter spreads and higher turnover, the city‑state stands to attract more international fund flows. Simultaneously, support for domestic managers reinforces Singapore's ambition to strengthen its plug‑and‑play asset‑management ecosystem. MAS confirmed that progress and outcomes will be tracked and disclosed periodically. Selected managers will have to report on liquidity metrics, investment activity and capability transfer milestones. This level of oversight reflects a strategic approach to ensure that public‑private collaboration delivers measurable structural improvements.
The Star
12 hours ago
- Business
- The Star
Singapore central bank to place S$1.1bil with asset managers to boost stock market
A view of the Monetary Authority of Singapore's headquarters. REUTERS/Darren Whiteside/ SINGAPORE: Singapore's central bank will place S$1.1 billion ($856.36 million) with three asset managers as part of a S$5 billion programme to boost the stock market, it said on Monday, with more co-investments to be announced late this year. The move comes as part of an ongoing probe into the local stock market by the Monetary Authority of Singapore and a review group set up in August last year, with the aim of strengthening the way the market functions. The fund managers selected as part of Singapore's Equity Market Development Programme (EQDP) are Avanda Investment Management, JP Morgan Asset Management and Fullerton Fund Management, which is owned by Singapore's sovereign fund Temasek. MAS said it considered "a range of factors" when choosing the managers, including the "alignment of their proposed fund strategies with EQDP objectives" and their commitment to contribute to the growth of Singapore's asset management capabilities. It added that more than 100 global, regional and local asset managers have shown interest in receiving funds for co-investment under the development programme, and that it will review the submissions in batches to speed up the appointment of asset managers and the deployment of capital. In February, MAS and the Financial Sector Development Fund (FSDF) announced that the S$5 billion programme would invest in strategies managed by Singapore-based asset managers that "have a strong focus on Singapore listed equities and broaden investor participation beyond large-cap stocks", the central bank said. Since Singapore announced that it would set up the review group to revive the stock market in August last year, the benchmark Straits Times Index had gained 23.9% as of July 18. ($1 = 1.2845 Singapore dollars) - Reuters
BusinessToday
12 hours ago
- Business
- BusinessToday
S'pore Dollar Pressured By Tariff Threats And MAS Easing Signals
The Singapore dollar is facing mounting pressure amid fresh US trade tensions and rising speculation that the Monetary Authority of Singapore (MAS) could ease its policy stance this month. In what may be a turbulent few weeks ahead, analysts say the city-state's currency is likely to weaken further against the US dollar. On Monday morning, it stood at S$1.2846 per greenback. But that figure may slide closer to S$1.30 soon, especially if US inflation stays elevated and pushes back expectations for a rate cut by the Federal Reserve. 'The tariff uncertainty, with higher tariffs on pharmaceuticals likely Aug. 1, could add to growth headwinds for Singapore in the second half,' said Moh Siong Sim, currency strategist at Bank of Singapore. US President Donald Trump's threats of fresh levies on pharmaceuticals and semiconductors — two of Singapore's key exports — have added a layer of uncertainty to the outlook. The potential for further economic headwinds is prompting expectations that the MAS may act sooner rather than later. Barclays economists, in a note last week, projected the MAS will flatten the slope of its Singapore dollar nominal effective exchange rate (S$NEER) policy band by 50 basis points to zero when it meets this month — a more dovish move than waiting until October. Unlike central banks that tweak interest rates, the MAS manages inflation through adjustments to the S$NEER band. Currently, the exchange rate is trading near the top end of that band. A flatter slope would effectively limit the currency's strength against its trading partners. 'With the MAS likely to stay on an easing path and flatten the slope of the S$NEER this month, our bias is for further Singapore dollar weakness,' said Priyanka Kishore, principal economist at Asia Decoded. She also warned that Singapore may be hit with a rise in the US base tariff rate from 10%, on top of specific sectoral duties. 'Singapore is not only at a disadvantage from the prospect of sectoral tariffs on pharmaceuticals and semiconductors, but may also see an increase in the base rate of 10% on Aug. 1,' she said. Economists widely expect core inflation data due July 23 to come in at just 0.7% year-on-year for June — a key factor reinforcing the case for MAS policy easing. Meanwhile, Bloomberg Intelligence analysts have flagged that the Singapore dollar is increasingly used in funding carry trades. According to their models, investors are already going long on the Indonesian rupiah while shorting the Singapore dollar — a strategy that reflects weakening sentiment on the city-state's currency. As trade pressures mount and monetary policy turns more dovish, the road ahead looks rough for the Singapore dollar. Bloomberg Related
