Broker: CGS International
Date of Report: July 21, 2025

Singapore Equities Poised for Growth: Liquidity Surge and Strategic Reforms Set to Unlock Value

Introduction: Singapore’s Equity Market at an Inflection Point

Singapore’s equity market is on the cusp of transformation, driven by a powerful confluence of liquidity injections, regulatory reforms, and strategic support for research and listings. The Monetary Authority of Singapore (MAS) has unveiled a series of measures under the S\$5bn Equity Market Development Programme (EMDP) aimed at enhancing market vibrancy, investor confidence, and unlocking value across the board. This article delves into every aspect of these game-changing initiatives, highlights the companies best positioned to benefit, and provides a comprehensive, data-rich analysis tailored for investors, analysts, and financial market watchers.

Liquidity Influx: MAS Appoints Asset Managers, Deploys S\$1.1 Billion

On July 21, MAS announced the appointment of three asset managers — Avanda Investment Management, Fullerton Fund Management, and JP Morgan Asset Management — as the first cohort under the EMDP. An initial S\$1.1bn will be allocated to these managers, with further appointments and fund placements anticipated by the fourth quarter of 2025.
Key Points:

• The total EMDP pool stands at S\$5bn, offering significant liquidity tailwinds for Singapore equities.
• The MAS is reviewing additional submissions, with subsequent manager appointments expected by Q4 2025.

Broadening Research and Listing Support: S\$50 Million GEMS Enhancement

MAS is fortifying the research ecosystem and listing pipeline with a S\$50m boost to the Grant for Equity Market Singapore (GEMS) scheme. The GEMS initiative will now extend to December 31, 2028, focusing on:

• Enhanced Research Development Grant: Up to S\$6,000 per research report, with extra support for initiations and coverage of pre-IPO or newly listed companies.
• New grants for digital dissemination of research to broaden investor outreach.
• Potential support for research on private companies with strong local presence.
• Expanded Listing Grant: New S\$40,000 grant per Depository Receipt (DR), and an increase in ETF listing support from S\$100k to S\$250k per primary ETF, plus S\$180k for cross-listed and feeder ETFs.

Strengthening Investor Protection and Market Confidence

A three-pronged approach is being considered to enhance investor protection:

• Facilitate legal action for aggrieved investors.
• Support self-organisation and access to funding for investor advocacy.
• Consultation on these proposals is scheduled for later in 2025.

Additional market enhancements under review include:

• Uplifting shareholder engagement capabilities.
• Enhancing the Catalist board’s value proposition.
• Improving market-making mechanisms for liquidity and price discovery.
• Facilitating retail investor access and post-trade efficiency.
• Ongoing review of the Code of Corporate Governance.

High Conviction Stock Picks: Beneficiaries of Value Unlocking and EMDP

The report highlights key stocks poised to benefit from the new liquidity and reform-driven environment. The following companies were added to the high conviction list due to their attractive valuations, sector catalysts, or direct EMDP benefits:

• Singapore Exchange (SGX): Expected to benefit from a virtuous cycle as the EMDP drives volumes, listings, and market activity.
• Yangzijiang Shipbuilding (YZJSGD): A laggard in industrials with cheap valuation relative to the SIMSCI; potential re-rating candidate.
• Hong Leong Asia (HLA): Re-rating potential on the back of a construction sector upcycle.
• LHN Ltd (LHN): Catalyst from potential monetization of its co-living business.

The following stocks were removed from the high conviction list post strong share price outperformance: SIE, BRC, FRKN, PAN, and PROP.

Comprehensive Company Coverage: Market Cap Above US\$1 Billion

Below is a table summarizing the key financial metrics for Singapore-listed stocks with market capitalizations above US\$1 billion as of July 16, 2025:

Comprehensive Company Coverage: Market Cap US\$200 Million – US\$1 Billion

A broad swath of mid-cap and small-cap stocks also features in the report, many of which stand to benefit from enhanced research coverage and liquidity support. Select highlights from the table include:

Alpha Picks for 2025: Large-Cap and Small-Cap Standouts

The report identifies a range of alpha picks for 2025, balancing growth, value, and dividend yield. Below is a summary of the most compelling opportunities:

Small-Cap Alpha Picks:

• CSE Global (CSE SP): 10.5% total return; 4.3% dividend yield; 11.6x P/E.
• Food Empire Holdings (FEH SP): 24.2% total return; 3.4% yield; 15.4x P/E.
• Hong Leong Asia (HLA SP): 18.0% total return; 2.7% yield; 13.2x P/E; solid construction sector catalyst.
• LHN Ltd (LHN SP): 17.0% total return; 3.4% yield; 11.0x P/E; monetization catalyst in co-living business.
• Marco Polo Marine (MPM SP): 11.1% total return; 2.0% yield; 7.7x P/E.
• Q&M Dental Group (QNM SP): 18.5% total return; 1.8% yield; 21.7x P/E.

Market Outlook and Rating Framework

CGS International’s sector and country rating definitions provide investors with clarity on recommended positioning:

• Add: Expected total return above 10% over the next 12 months.
• Hold: Expected total return between 0% and 10%.
• Reduce: Expected total return below 0%.

Distribution of ratings as of June 30, 2025:

• Add: 70.6%
• Hold: 20.5%
• Reduce: 8.9%

With 561 companies under coverage, the breadth of analysis underscores the dynamism and opportunity within Singapore’s evolving equities market.

Conclusion: Unleashing Singapore’s Market Potential

Singapore’s market stands at a pivotal juncture. With MAS’s S\$5bn EMDP, robust research and listing grants, and strengthened investor protection, the stage is set for a new era of growth, liquidity, and innovation. Both large-cap and small-cap names — spanning property, industrials, shipping, and consumer sectors — are well positioned to benefit from these reforms. Investors seeking value, growth, and stability should pay close attention to the highlighted alpha picks and the broader universe of Singapore equities as the market enters this transformative phase.

About CGS International

CGS International is a leading provider of research and investment insights across Asia, offering in-depth coverage, actionable recommendations, and timely analysis for institutional and retail investors alike. For further information, investors can contact the analysts responsible for this report:

• LOCK Mun Yee: [email protected]
• LIM Siew Khee: [email protected]