A new workgroup has been established to enhance Singapore’s growth capital markets, as announced by Prime Minister Lawrence Wong during his Budget statement. Chaired by Chee Hong Tat, Deputy Chairman of the Monetary Authority of Singapore (MAS), the Growth Capital Workgroup aims to bridge the gap between private funding and public listings, showcasing Singapore’s ambition as a leading financial hub.
Key Initiatives of the Growth Capital Workgroup
The workgroup will focus on recommending measures to support financing needs across various stages of company growth, including:
- Venture capital
- Private equity
- Private credit
Chee expressed that enhancing the ecosystem for these components would create a reinforcing network effect, allowing for a wider array of services and options for companies and investors.
Opportunities for Local and Foreign Entrepreneurs
Highlighting the potential for high net worth individuals and family offices to contribute to Singapore’s private markets, Chee noted that while bank loans are the traditional financing method in Asia, diversifying funding sources would be beneficial. The workgroup will particularly address the challenges faced by high-tech startups in connecting with suitable investors.
Collaboration with the Private Sector
Members of the workgroup include notable figures from leading firms, such as:
- Dilhan Pillay, CEO of Temasek Holdings
- Tan Su Shan, CEO of DBS
- Chia Der Jiun, MAS Managing Director
- Shawn Huang, Senior Parliamentary Secretary for Finance
The workgroup aims to boost Singapore’s financial services sector, generate job opportunities, and stimulate entrepreneurship. Chee also mentioned the importance of being open to ideas from ongoing MAS initiatives, such as those involving digital assets.
Timeline and Future Goals
The Growth Capital Workgroup is set to complete its review by the end of 2027, with interim updates along the way. Additionally, the MAS has announced an expansion of the Equity Market Development Programme from $5 billion to $6.5 billion, further solidifying the commitment to develop a robust investment landscape in Singapore.
As firms in Asia continue to grow, Singapore aims to position itself as a trusted financial hub ready to meet evolving capital demands, ensuring that both local and foreign entrepreneurs find a welcoming environment to thrive.