Singapore's Equity Market Poised for Second-Half Rebound

Friday, Jun 6, 2025 7:03 pm ET1min read

Singapore's equity market is expected to improve in the second half of 2025, driven by a shift in global trade tensions and a liquidity boost from policymakers. The Monetary Authority of Singapore's S$5 billion Equity Market Development Programme aims to increase liquidity and support non-index counters. Investors seeking value, yield, and quality may find Singapore an attractive bet.

Singapore's equity market is expected to show significant improvement in the second half of 2025, driven by a shift in global trade tensions and a liquidity boost from policymakers. The Monetary Authority of Singapore's (MAS) S$5 billion Equity Market Development Programme aims to increase liquidity and support non-index counters. Investors seeking value, yield, and quality may find Singapore an attractive bet.

The MAS's regulatory framework for Digital Token Service Providers (DTSPs) under the Financial Services and Markets Act (FSMA) is another factor contributing to market stability. Effective from June 30, 2025, all DTSPs operating without compliance must halt their activities immediately [1]. This underscores MAS’s commitment to robust regulatory oversight in the crypto sector. The DTSP classification encompasses entities offering token trading, custody, and transfer services to international clients within Singapore. Existing license holders under PSA, SFA, or FAA regimes are exempt from obtaining a new DTSP license but are mandated to adhere to enhanced compliance protocols, including stringent technical risk controls, mandatory annual audits, and rapid reporting of significant security breaches within one hour.

MAS’s regulatory evolution marks a strategic transition from a mere licensing model to a comprehensive compliance-based framework. Additionally, the authority introduces a tiered regulatory approach for stablecoins, reflecting a nuanced risk management strategy tailored to the growing digital asset ecosystem.

The shift in global trade tensions and the liquidity boost from MAS are expected to create a favorable environment for Singapore's equity market. Investors looking for opportunities in the second half of 2025 should closely monitor these developments and consider the regulatory landscape to make informed investment decisions.

References:
[1] https://en.coinotag.com/breakingnews/mas-finalizes-dtsp-regulatory-framework-with-tiered-rules-for-stablecoin-compliance-in-singapore/

Singapore's Equity Market Poised for Second-Half Rebound

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