Singapore is gearing up for one of its most anticipated financial reform initiatives in recent years — the Value Unlock Programme, first announced by Minister for Transport and Second Minister for Finance Chee Hong Tat. Slated for November 2025, this programme aims to revitalise the local capital market by unlocking hidden value within listed companies and public assets, boosting investor confidence and deepening liquidity in Singapore’s equity markets.
While full details of the scheme are expected to be unveiled this month, the programme signals Singapore’s commitment to strengthening its financial ecosystem and ensuring that public and private capital work more efficiently to deliver long-term shareholder value.
1. Background: What Is Singapore’s Value Unlock Programme?
The Value Unlock Programme was conceptualised as part of Singapore’s broader economic agenda to improve capital efficiency, increase market valuations, and enhance the attractiveness of the Singapore Exchange (SGX).
In recent years, several Singapore-listed companies have traded below their net asset value (NAV) — suggesting that the market was undervaluing their assets relative to their intrinsic worth. This issue, commonly observed in asset-heavy sectors such as real estate, logistics, and infrastructure, prompted policymakers to seek structural solutions that could release trapped value.
Minister Chee Hong Tat noted that the government, through agencies such as MAS (Monetary Authority of Singapore) and Enterprise Singapore, is working closely with stakeholders to develop frameworks that encourage companies to:
- Optimise capital structures
- Reposition underperforming assets
- Consider partial divestments or spin-offs
- Enhance transparency and governance to attract investors
At its core, the Value Unlock Programme aligns with global best practices in asset monetisation and corporate restructuring, ensuring that Singapore remains competitive amid shifting capital flows and rising investor demands for efficiency.
2. Why Value Unlocking Matters for Singapore’s Market
Singapore’s stock market, though resilient, has seen slower growth in listings compared to regional peers. Many investors view the SGX as a market dominated by mature, low-growth firms with limited upside potential.
By introducing the Value Unlock Programme, the government aims to:
- Reignite investor interest in local equities
- Attract foreign capital inflows
- Encourage corporate innovation and agility
- Enable companies to recycle capital into higher-growth ventures
This approach dovetails with Singapore’s vision of becoming Asia’s financial gateway — not only a hub for trading and wealth management but also a model for sustainable, high-value capital deployment.
3. Learning from Regional Examples
Singapore is not the first to embark on a value-unlocking journey. Across Asia, several countries — including Indonesia, Malaysia, and China — have implemented similar strategies with notable results. Each offers valuable insights that can inform Singapore’s approach.
A. Indonesia: Value Unlock Through the Indonesia Investment Authority (INA)
Indonesia’s model is a prime example of how asset monetisation can drive both fiscal strength and private investment.
Established in 2021, the Indonesia Investment Authority (INA) serves as the country’s sovereign wealth fund, designed to attract global institutional investors to co-invest in infrastructure and strategic sectors.
Key features of Indonesia’s approach include:
- Asset Recycling: The government monetised mature infrastructure assets (such as toll roads, airports, and seaports) and reinvested proceeds into new development projects.
- Public-Private Partnerships (PPP): INA facilitates co-investment deals with partners like GIC (Singapore), Abu Dhabi Investment Authority (ADIA), and Canada Pension Plan Investments (CPPIB).
- Long-Term Value Creation: Rather than outright privatisation, assets are leased or sold partially to generate recurring revenues while maintaining state oversight.
Impact:
Indonesia’s asset recycling programme has raised billions in new capital, accelerated infrastructure development, and enhanced investor confidence. It demonstrates that strategic collaboration between public and private sectors can unlock value sustainably — a principle Singapore is likely to echo in its own design.
B. Malaysia: Khazanah Nasional’s Value Realisation Strategy
Malaysia’s Khazanah Nasional Berhad, its sovereign wealth fund, has been a pioneer in balancing national interests with commercial objectives.
Since the early 2000s, Khazanah has actively pursued a “Value Realisation Strategy”, which involves:
- Divesting mature investments in sectors such as telecommunications, banking, and utilities
- Reinvesting proceeds into high-growth and innovation-driven industries
- Streamlining state-owned enterprises (SOEs) to improve performance and governance
In 2018, Khazanah launched its refresh strategy, focusing on two portfolios — Commercial and Strategic. The commercial portfolio aims to generate sustainable returns through value unlocking and disciplined capital management, while the strategic portfolio supports national development priorities.
Impact:
Khazanah’s disciplined divestment approach has enabled Malaysia to realise significant capital gains while improving the governance standards of its investee companies. The fund’s experience offers a roadmap for Singapore to ensure that value unlocking does not equate to asset stripping but rather leads to efficient capital reallocation and renewed corporate growth.
C. China: Mixed-Ownership Reform of State-Owned Enterprises (SOEs)
China’s Mixed-Ownership Reform (MOR) — launched in the mid-2010s — represents one of the world’s largest value-unlocking experiments.
Facing concerns about inefficiency and low returns in its sprawling network of SOEs, China’s government initiated reforms to inject private capital and market discipline into state-controlled firms.
Core elements of the MOR strategy include:
- Introducing private and foreign investors as minority shareholders
- Listing subsidiaries of major SOEs on domestic and international stock exchanges
- Implementing performance-based management systems and transparency standards
Impact:
The reform led to improved profitability, innovation, and governance across key industries such as energy, telecommunications, and transportation. Some SOEs, after partial privatisation, saw market valuations double or triple, validating the potential of value unlocking in revitalising legacy enterprises.
For Singapore, China’s experience underscores the importance of balancing state control with market participation — an equilibrium that can foster accountability, competitiveness, and sustainable growth.
4. Common Threads and Lessons for Singapore
Across Indonesia, Malaysia, and China, three clear lessons emerge that Singapore can apply in shaping its Value Unlock Programme:
Lesson 1: Strategic Partnerships Amplify Impact
Whether through sovereign wealth funds like INA or Khazanah, or through public listings as in China, collaboration between state institutions and private capital is crucial. Singapore’s strong institutional credibility and financial transparency position it well to attract global investors looking for stable, high-yield opportunities.
Lesson 2: Governance and Transparency Build Trust
Successful value unlocking depends on clear frameworks for asset valuation, divestment, and reinvestment. Transparent processes reassure investors that initiatives are driven by economic merit, not short-term gains. Singapore’s rigorous governance standards give it a natural advantage here.
Lesson 3: Recycling Capital Spurs Sustainable Growth
The ultimate goal isn’t merely to monetise assets but to redeploy capital into sectors that fuel innovation and long-term productivity — such as technology, green energy, and logistics. This virtuous cycle transforms static balance sheets into dynamic growth engines.
5. Potential Pathways for Singapore’s Implementation
While official details will emerge in November 2025, analysts anticipate that the Value Unlock Programme could encompass several key mechanisms:
- REIT Spin-Offs: Encouraging companies to unlock real estate value through Real Estate Investment Trust listings — a proven strength of Singapore’s financial market.
- Asset Recycling Funds: Creating vehicles similar to INA to attract co-investments from pension funds and institutional investors.
- Corporate Restructuring and M&A: Supporting mergers, acquisitions, and spin-offs to streamline group structures and focus on core competencies.
- Private Market Engagement: Leveraging Singapore’s vibrant private equity and venture capital ecosystem to help listed firms restructure and grow.
Such initiatives could enhance market liquidity, increase valuations, and reignite interest among both domestic and international investors.
6. The Broader Economic Significance
Beyond capital markets, the Value Unlock Programme represents Singapore’s adaptive economic philosophy — pragmatic, collaborative, and forward-looking.
By encouraging companies to reassess their asset portfolios, the initiative could drive innovation, boost productivity, and generate new investment opportunities. Moreover, it could strengthen Singapore’s position as a regional benchmark for responsible capital management and financial innovation.
For institutional investors, this policy offers a signal of renewed policy support for market efficiency and shareholder value — vital for long-term confidence in the SGX ecosystem.
7. The Road Ahead: What Investors Should Watch For
As November unfolds, investors should keep an eye on a few critical developments:
- Official framework details from MAS and relevant ministries
- Target sectors (e.g., real estate, infrastructure, logistics, digital economy)
- Potential tax or regulatory incentives supporting divestment and reinvestment
- Early corporate participants signalling readiness to restructure
Analysts expect that the first wave of announcements will set the tone for subsequent market reforms, potentially influencing valuations and capital flows in the coming quarters.
8. Conclusion: A Promising Horizon for Investors
Singapore’s Value Unlock Programme is not just an economic policy; it’s a strategic vision to revitalise the nation’s capital markets and enhance corporate dynamism.
By drawing inspiration from Indonesia’s asset recycling model, Malaysia’s disciplined divestment strategy, and China’s mixed-ownership reforms, Singapore is poised to design a homegrown framework that balances efficiency with long-term sustainability.
For investors, this initiative marks a turning point — an opportunity to participate in Singapore’s next chapter of financial evolution. As details unfold this month, the market could see renewed optimism, stronger valuations, and an invigorated investment landscape.
The message is clear: Singapore is unlocking value not just from its assets, but for its future.