The year 2025 has brought remarkable momentum to Singapore’s stock markets. With strong leadership from the Monetary Authority of Singapore (MAS), the Singapore Exchange (SGX), and the Equities Market Review Group (EMRG), Singapore is seeing renewed investor confidence, higher trading volumes, and policy reforms aimed at revitalising its position as a premier Asian equities hub.
Below are the 10 major milestones that have defined Singapore’s stock markets so far in 2025 — including initiatives led by the Equities Development Group and broader measures under the national Equities Market Development Programme.
1. Launch of the S$5 billion Equity Market Development Programme (EQDP)
In early 2025, MAS announced a S$5 billion Equity Market Development Programme to deepen liquidity and investor participation in Singapore-listed equities.
Key features include:
- An initial S$1.1 billion allocation to three asset managers for funds focusing on Singapore equities.
- Emphasis on small- and mid-cap companies to increase research coverage and market depth.
- A broader mandate to stimulate demand for locally listed equities through targeted investments.
Why it matters:
This was one of Singapore’s most ambitious equity-market initiatives in decades. It represents a decisive shift from passive regulation to proactive ecosystem development.
Impact:
Institutional capital inflows are expected to boost valuations and trading activity, especially for under-researched companies. For investors, this creates opportunities in previously overlooked segments of the market.
2. New Tax Incentives for Listings and Fund Managers
Budget 2025 introduced a new suite of tax incentives to encourage listings and fund management activities in Singapore.
Key measures include:
- Corporate income-tax rebates of 20 % for primary listings and 10 % for secondary listings for up to five years.
- A 5 % concessionary tax rate for new fund managers listing in Singapore and investing substantially in domestic equities.
- Tax exemptions for qualifying income derived from Singapore-listed equities.
Why it matters:
Singapore’s competitive advantage lies in its efficient and transparent regulatory regime, but cost and liquidity concerns have long deterred some issuers. These incentives make Singapore a more compelling venue for both fund managers and companies considering IPOs.
Impact:
A growing number of regional fund managers and corporates are now re-evaluating Singapore as a listing destination, creating positive momentum for the SGX.
3. Regulatory Reforms by the Equities Market Review Group (EMRG)
The Equities Market Review Group, established by MAS, unveiled its first set of reform proposals in early 2025 aimed at enhancing the attractiveness and efficiency of Singapore’s equity market.
Reform focus areas:
- Listing Supply: Simplified listing rules, reduced documentation, and faster approval timelines to make the process more business-friendly.
- Investor Demand: Strengthening research coverage, expanding grants for equity research, and improving liquidity support schemes.
- Market Structure: Transitioning towards a disclosure-based listing regime that prioritises transparency and governance rather than prescriptive rules.
Why it matters:
These reforms modernise Singapore’s listing framework, making it comparable to leading global exchanges.
Impact:
Issuers benefit from a clearer, more efficient path to listing, while investors gain from stronger governance and better access to information.
4. Record High Trading Volumes and Liquidity Growth
The SGX recorded a 27 % year-on-year increase in securities trading value during FY2025, marking the strongest performance in the region. The daily average trading value rose to around S$1.3 billion, a notable improvement after several quiet years.
Key drivers:
- Increased institutional activity under EQDP.
- Higher retail participation driven by digital trading platforms.
- Growing interest in mid-cap stocks through new indices and ETFs.
Why it matters:
Liquidity is the lifeblood of any stock market. Improved turnover means better price discovery, narrower bid-ask spreads, and a more vibrant trading ecosystem.
Impact:
Singapore’s equity market now ranks among the most liquid in Southeast Asia, strengthening its position as a regional financial hub.
5. Launch of the iEdge Singapore Next 50 Index
In September 2025, SGX introduced the iEdge Singapore Next 50 Index and its Liquidity-Weighted variant, expanding visibility for the next tier of mid-cap companies beyond the Straits Times Index (STI).
Highlights:
- Tracks 50 companies ranked after the STI constituents.
- Mid-cap stock turnover rose by about 50 % year-on-year, indicating rising investor engagement.
- The index delivered a strong 18 % total return from its launch through November 2025.
Why it matters:
The iEdge Singapore Next 50 broadens the investable universe and supports equity market depth.
Impact:
Fund managers and ETFs now have new benchmarks for mid-cap exposure, boosting research coverage and liquidity in this critical segment of the market.
6. Revival of Major IPO Activity — Led by NTT DC REIT
Singapore’s IPO market roared back to life with the NTT DC REIT listing in July 2025, raising about US$773 million — the largest IPO on SGX in four years.
Why it matters:
This landmark listing signals that the Singapore market can attract large-scale, globally recognised issuers. It also underscores renewed investor appetite for yield-oriented and infrastructure-linked assets.
Impact:
The success of NTT DC REIT sparked renewed optimism among potential issuers, leading to a growing pipeline of tech, logistics, and sustainability-focused listings for 2026.
7. Straits Times Index Reaches All-Time Highs
The Straits Times Index (STI) broke the 4,000-point barrier in March 2025 and surpassed 4,200 points by mid-year — a historic milestone.
Drivers of growth:
- Robust earnings from the banking and REIT sectors.
- Increased domestic and foreign investor participation.
- The cumulative impact of market reforms and policy incentives.
Why it matters:
An all-time-high STI reinforces market confidence and global visibility. For investors, it validates the underlying strength of Singapore’s economy and corporate sector.
Impact:
This rally has attracted new inflows from both institutional and retail investors, while also increasing analyst coverage of Singapore-listed companies.
8. Expansion of International Connectivity and Cross-Border Partnerships
In 2025, SGX expanded its international footprint through new cross-exchange partnerships and derivative products.
Key developments:
- Collaboration with Brazil’s B3 Exchange to launch currency futures, marking SGX’s entry into non-Asian emerging markets.
- Strengthened ties with regional exchanges to facilitate dual listings and cross-border trading.
- Expansion of SGX FX and derivatives offerings, increasing hedging and global participation options.
Why it matters:
Cross-border linkages enhance market access and liquidity while positioning Singapore as an international gateway for both Asian and global investors.
Impact:
Broader connectivity translates into higher trading diversity, new product innovation, and increased institutional flows into Singapore.
9. A Robust Pipeline of Upcoming Listings
By late 2025, more than 30 companies were actively preparing to list on SGX, ranging from regional family-owned enterprises to high-growth technology firms and sustainability-focused REITs.
Why it matters:
A robust IPO pipeline is one of the strongest indicators of market confidence and forward momentum. It also demonstrates that policy initiatives like EQDP and tax incentives are producing tangible results.
Impact:
A steady stream of new listings will help broaden the market, attract fresh investor capital, and create a virtuous cycle of growth for Singapore’s equity ecosystem.
10. Surge in Institutional Participation in Small- and Mid-Caps
Institutional investors significantly increased their exposure to smaller companies in 2025, with net inflows exceeding S$400 million into mid-cap and small-cap equities.
Key trends:
- Enhanced research coverage through SGX’s sponsored research programme.
- New mid-cap benchmarks such as the iEdge Singapore Next 50 Index.
- Improved liquidity and visibility under the EQDP framework.
Why it matters:
Institutional participation in smaller companies has historically been limited in Singapore. This shift suggests that structural improvements — including better transparency and liquidity — are finally attracting professional capital.
Impact:
For smaller-cap issuers, increased institutional demand translates into better valuation discovery, more stable shareholder bases, and easier access to follow-on capital.
Summary and Outlook for 2026
The Singapore stock market in 2025 has undergone one of its most significant transformations in over a decade. From large-scale policy interventions and tax incentives to index innovation and record liquidity, every milestone has contributed to repositioning the SGX as a more vibrant and globally connected marketplace.
Key takeaways:
- Policy alignment between MAS, SGX, and the Ministry of Finance has created a unified growth strategy for the equity market.
- Liquidity and participation have both improved markedly, thanks to targeted capital deployment and enhanced investor incentives.
- Mid-cap visibility and new index products are helping diversify investment opportunities beyond the traditional large-cap space.
- IPO revival and a robust pipeline signal growing confidence among issuers.
- Cross-border partnerships are strengthening Singapore’s relevance in global capital markets.
Looking ahead to 2026:
- The focus will likely shift from policy execution to performance measurement — evaluating how these programmes translate into sustainable listing growth and liquidity depth.
- Further reforms in disclosure, governance, and investor protection may be introduced to align with global best practices.
- Technology, green finance, and infrastructure assets are expected to dominate upcoming listings, reflecting global megatrends.
Ultimately, 2025 will be remembered as a turning point year — one where Singapore not only revitalised its equity markets but also set a strong foundation for the decade ahead.