The government will launch a second $1.5 billion tranche of the Anchor Fund, which was initially established to “attract and anchor high-quality public listings”, says Prime Minister and Finance Minister Lawrence Wong at Budget 2026.
“As with the first tranche, this will be a co-investment between the government and Temasek,” he adds.
The Anchor Fund was set up in 2022 as the Anchor Fund @ 65 to support promising high-growth companies and encourage their listing on the Singapore Exchange (SGX).
AvePoint, a Nasdaq-listed data management and governance tool provider, launched a dual listing on the SGX in September 2025 after receiving investment from the Anchor Fund in September 2023.
Wong also announced the expansion of the Equity Market Development Programme (EQDP), which was first unveiled in February 2025. The government will expand the programme with a $1.5 billion top up, bringing the total thus far to $6.5 billion, he says.
“Industry response has been encouraging,” he says.
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MAS has disbursed some $3.95 billion to a total of nine asset managers so far. The remaining tranche of $1.05 billion will be distributed later this year.
Ng Yao Loong, head of equities at SGX Group says that these decisive moves reinforce Singapore’s long‑term conviction that building a vibrant, resilient stock market requires sustained commitment and targeted action.
"The increase in funding for the EQDP and Anchor Fund reflects strong demand and growing confidence from fund managers who see compelling opportunities in Singapore‑listed stocks, and enterprises seeking to raise capital on SGX.
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"Beyond the quantum of capital, the impact lies in disciplined deployment through active managers, alongside holistic efforts to strengthen liquidity, deepen research coverage and widen investor participation," he says.
"The early traction we are seeing in capital formation, and small‑ and mid‑cap stocks points to a virtuous cycle taking shape. In close partnership with MAS and market participants, SGX will continue to convert this momentum into a deeper, more dynamic stock market," he adds.
EY's Stephen Bruce calls Budget 2026 "a strong and deliberate commitment to reinforcing Singapore’s capital markets" while his colleague Chan Yew Kiang notes that the EQDP, since its launch early last year, has strengthened Singapore's capital markets, boosted liquidity, improved valuation of small- and mid-cap stocks and led to an increase in IPOs.
"Any additional infusion of support would help sustain these earlier efforts, further enhancing investors’ participation, liquidity and strengthening the local equity markets," says Chan.
Jimmy Seet of PwC Singapore says the $1.5 billion infusion into both the Anchor Fund and Financial Sector Development Fund signals a strong government commitment to invigorate the equities market.
"Together with the other measures from the Equity Market Review Group, institutional participation is set to rise, creating attractive opportunities for companies eyeing IPOs. Businesses with capital markets ambitions should seize this moment by strengthening governance and investor relations, and ensuring market readiness," he adds.
Kelvin Cen, head of SEA at Bloomberg, says that such further investments send an important signal to market participants – that the strength and accessibility of Singapore’s capital markets remain a priority to the government, and that there is an ongoing commitment to Singapore’s status as a world class financial hub.
More Budget 2026 coverage by The Edge Singapore here
