Macquarie Capital has released its latest analysis on the Singapore equities market, spotlighting the potential impact of the Monetary Authority of Singapore’s (MAS) recently announced $5 billion Equity Market Development Programme (EQDP). The programme, set to be implemented in the third quarter of 2025, aims to invigorate investment in small to mid-cap stocks, broadening investor participation beyond the large-cap focus.
The EQDP will see MAS investing in strategies managed by Singapore-based asset managers, with an emphasis on local equities. Macquarie has identified a selection of small-mid cap stocks that meet the likely criteria for EQDP mandates, using their Quant Alpha model. These stocks include ComfortDelGro (CD), First Resources (FR), IFAST Corporation, Parkway Life REIT (PREIT), and Singapore Technologies Engineering (STH). Additionally, Macquarie’s top large-cap picks include OCBC, Sembcorp Industries (SCI), Singapore Technologies Engineering (STE), CapitaLand Ascendas REIT (CLAR), and Dairy Farm International (DFI).
Jayden Vantarakis, Head of ASEAN Equity Research at Macquarie Capital, noted that the EQDP is part of a broader effort by the Equities Market Review Group to enhance the competitiveness of Singapore’s equities market. The programme is expected to attract additional private capital, potentially increasing the total investment beyond the initial $5 billion allocation.
Macquarie’s analysis also indicates that mandates under the EQDP may include up to 40% of ASEAN stocks outside Singapore, further diversifying investment opportunities. Despite the current underperformance of small-mid caps compared to the Straits Times Index, the infusion of capital through the EQDP could shift market dynamics, potentially improving the relative performance of these stocks.
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