Saturday, 20 April 2024
New S$75 million grant to enhance Singapore’s role as an enterprise financing hub
The Monetary Authority of Singapore (MAS) will launch a new S$75 million Grant for Equity Market Singapore (GEMS). Announcing this at the UBS Wealth Insights conference, Mr Heng Swee Keat, Minister for Finance and MAS Board Member, highlighted Singapore’s vision to serve as Asia’s centre for capital raising and enterprise financing. GEMS will be a three-year initiative to help enterprises seeking to raise capital through Singapore’s equity market.
GEMS will have three components:
a. Listing Grant: to facilitate enterprises seeking a listing on Singapore Exchange (SGX) by defraying part of their Initial Public Offering (IPO) costs;
b. Research Talent Development Grant: to strengthen Singapore’s research coverage of enterprises by grooming equity research talent; and
c. Research Initiatives Grant: to support crowd-sourced initiatives to propel the development of Singapore’s equity research ecosystem.
Listing Grant
Singapore’s equity market has supported the fund raising needs of a wide range of enterprises when they choose to list on SGX. This includes listings of foreign enterprises, real estate investment trusts and business trusts. The listing grant, with different funding tiers, will further encourage eligible enterprises across a range of sectors to list on SGX. The eligibility and funding tiers are listed below:
Eligibility
- Enterprises in new technology sector1 with minimum market capitalisation of S$300 million
- Enterprises from high growth sectors2 with minimum market capitalisation of S$300 million
- Enterprises from all sectors with no minimum market capitalisation
Level of funding
- Co-fund 70% of eligible listing expenses, with grant capped at S$1 million
- Co-fund 20% of eligible listing expenses, with grant capped at S$500,000
- Co-fund 20% of eligible listing expenses, with grant capped at S$200,000
1The new technology sector includes financial technologies, consumer digital technologies, on-demand services as well as gaming services & peripherals.
2The high growth sectors, identified in the Committee for Future Economy (CFE) report, are digital cluster, advanced manufacturing, hub services, logistics, urban solutions & infrastructure and healthcare.
Research Talent Development Grant
Enhanced research coverage, particularly for mid and small-cap enterprises, can help improve investor knowledge, which will in turn facilitate price discovery and liquidity. The research talent development grant is designed to groom a pipeline of equity research analysts and retain experienced research talent to initiate research coverage primarily of listed mid and small-cap enterprises. The grant will co-fund locals in the following areas:
a. 70% of the salaries for fresh graduates hired as equity research analysts; and
b. 50% of the salaries for re-employed experienced equity research analysts.
Research Initiatives Grant
MAS will earmark funds to crowd-source initiatives that will propel the development of Singapore’s equity research ecosystem. Such initiatives can include publication of industry or sector primers, innovative ways to distribute research and disseminate enterprise information to investors.
Mr Ng Yao Loong, Assistant Managing Director, MAS, said, “Singapore has been working to enhance our private and public markets so that domestic and international growth enterprises are able to access different types of capital best suited to their needs. Results from our private market initiatives3 and bond grant schemes4 have been encouraging. GEMS will help strengthen Singapore’s position as the go-to venue in Asia for enterprises seeking growth financing.”
GEMS, funded under the Financial Sector Development Fund (FSDF), will take effect from 14 Feb 2019 and MAS will release more details closer to the date. An infographic of GEMS can be found in the Annex. Interested applicants can write to fsdf@mas.gov.sg for more information.
Re-disseminated by The Asian Banker
