Singapore will roll out the second S$1.5-billion ($1.2 billion) tranche of its Anchor Fund, a co-investment between the government and Temasek, to capitalise on the renewed momentum in the domestic equity markets and strengthen the pipeline of quality listings on the Singapore Exchange (SGX) .
The new commitment brings the total allocation for the fund, which is managed by Temasek’s 65 Equity Partners, to S$3 billion.
“We had earlier set up the Anchor Fund to attract and anchor high-quality listings, and we are now seeing encouraging signs of renewed listing activity on the SGX,” Prime Minister Lawrence Wong said in the annual budget speech in Parliament on Thursday.
The Anchor Fund was set up in 2021 to support and attract high-quality and leading companies to list in Singapore. The fund also provides pre-IPO financing for target companies and supports them ahead of the eventual listing. The initiative is part of broader efforts to deepen Singapore’s capital markets and reinforce the city-state’s position as a regional financial hub.
The Singapore exchange has been showing green shoots of recovery after the central bank wrapped up its review programme for the equity markets and allocated about S$4 billion across nine asset managers to stimulate the markets, as part of its Equity Market Development Programme.
65 Equity Partners-backed AvePoint raised about S$260 million in its secondary listing on SGX in September, marking the first IPO by a portfolio firm of the Temasek subsidiary nearly four years after it was established. UltraGreen.ai, also backed by 65 Equity Partners along with August Global Partners, was listed late last year in a $400-million IPO.
The government is also topping up its equity market enhancement programme with S$1.5 billion. “Industry response has been encouraging,” Wong said.
Further, it will move ahead with other recommendations from the equities market review group, including streamlining listing rules and requirements to make it easier for high-growth companies to go public, as well as establishing a dual-listing bridge between SGX and Nasdaq.
But Wong stressed that strong capital markets alone are not enough, and Singapore must also build a robust pipeline of companies choosing to grow and anchor themselves in the city-state.
While some of these firms will be homegrown enterprises, Singapore also aims to attract promising overseas companies with the potential to become industry leaders. The Economic Development Board (EDB), traditionally focused on multinational corporations, will step up efforts to bring in high-growth firms early in their expansion stage so that Singapore can capture greater economic value as they scale.
“This comprehensive approach from nurturing homegrown startups to catalysing private capital and attracting promising global companies will strengthen our enterprise ecosystem,” said Wong.
Chiu Wu Hong, Partner, Head of Private Enterprise, KPMG in Singapore, said, “The additional resources for Startup SG Equity, the strengthened Equity Market Development Programme, and the new capital market enhancements collectively create a more robust environment for companies to move from startup to scale up. EDB’s focus on anchoring high-growth enterprises earlier in their journey will deepen Singapore’s economic base and reinforce our role as a global centre for innovation driven growth.”
Young companies
Funding support for enterprises will also be strengthened as part of Singapore’s broader effort to build a stronger innovation and capital ecosystem.
Wong said Singapore has made steady progress over the past decade in improving access to venture and seed funding, making it easier for startups to secure early-stage capital. However, many companies continue to face funding challenges at the growth stage, a trend seen globally as growth capital has tightened in recent years.
“To date, the scheme has focused mainly on early-stage funding. We will now go further. I will set aside $1 billion to enhance the Startup SG Equity programme and expand its scope to cover growth-stage companies,” Wong said.
KPMG’s Hong said, “Growth-stage companies are investments in Singapore’s future competitiveness. By helping innovative firms scale from Singapore, we are unlocking new opportunities for Singaporeans to take on high-value roles, build deep skills, and grow meaningful careers.”
Beyond funding support, a new workgroup led by Minister Chee Hong Tat will be convened to work with industry participants on strategies to position Singapore as a leading hub for growth capital. “When enterprises are ready to list, we want them to see Singapore as their listing venue of choice,” Wong said.
