Singapore sets up workgroup to strengthen venture capital, private equity markets
The workgroup will also look into areas such as private credit, as well as ways to improve deal origination and facilitate capital raising.
Office workers wait to cross a junction in Singapore's central business district on Jan 6, 2025. (Photo: CNA/Wallace Woon)
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SINGAPORE: A new workgroup set up to strengthen Singapore's growth capital markets will seek to close the gap between private funding and public listings, said Monetary Authority of Singapore (MAS) deputy chairman Chee Hong Tat on Friday (Feb 13).
Companies can borrow from banks or raise capital through public markets, and stronger private markets would be a "useful complement", said Mr Chee, who will chair the Growth Capital Workgroup.
Different components of the ecosystem will reinforce one another, and the network effect will allow Singapore to increase the range of services and options for companies and investors, he said.
The workgroup was announced by Prime Minister Lawrence Wong during his Budget 2026 speech, and will recommend measures to support the financing needs of companies in Singapore and the region across various growth stages.
It will look into areas such as venture capital, private equity and private credit, as well as the ways to improve deal origination, facilitate capital raising and enable effective capital recycling.
High net worth individuals and family offices are potential contributors to Singapore's private markets, said Mr Chee.
"While bank loans have traditionally been the main mode of financing in Asian economies, more diverse sources of capital will benefit companies and economies in this region," MAS and Ministry of Trade and Industry said in a joint statement.
Mr Chee, who is also the Minister for National Development, said companies in Asia are expanding and growing, while investors are interested in opportunities in the region.
"The supply of capital and the demand for capital presents an opportunity for us as a trusted financial hub to see how we can benefit from this growth," he said.
Private markets can provide capital to companies that are not yet ready for a public listing, he said, adding that infrastructure is an area with potential because there is a lot of development going on in Asia, and that requires long-term capital.
Foreign companies that may not be able to raise capital in their home countries could do so in Singapore instead.
Mr Chee highlighted existing gaps in the system that the workgroup will aim to close, including high-tech startups that may not be connected with investors who can fully appreciate the work that they do and the financing needs that they have.
"We still can further develop some of the resources and capabilities in our ecosystem to do this better," he said, adding that it will boost Singapore's financial services industry, create jobs and support entrepreneurship.
Executive director and CEO of Temasek Holdings Dilhan Pillay and DBS CEO Tan Su Shan will be part of the workgroup, along with other representatives including MAS managing director Chia Der Jiun and senior parliamentary secretary for finance Shawn Huang.
The group aims to complete its review by the end of 2027, and will provide interim updates on its recommendations along the way.
