The foundation: Singapore’s strategic advantages
Singapore is starting from a position of undeniable strength. For global investors, our jurisdiction is synonymous with stability and fairness. Our tax, regulatory, and legal frameworks are widely respected; for those managing significant capital, the knowledge that contracts are honoured and rules are transparent is a primary draw.
Complementing this is a world-class market infrastructure and talent pool. At Grasshopper, our journey from the trading floor to a technology-driven quantitative house was made possible by the efficiency of this environment. We have invested heavily in connectivity, data, and algorithmic systems because the Singapore landscape is predictable and robust.
This stability has attracted significant pools of capital seeking a safe haven in a volatile global economy. The EQDP has effectively amplified this interest, bringing fresh attention from foreign investors who see Singapore as an ideal staging ground for Asian exposure. The logic is simple: capital follows clarity.
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The EQDP as a necessary catalyst
The EQDP is more than just a policy; it is a substantial deployment of ambition. By mobilising $6.5 billion through EQDP-linked vehicles, Singapore has sent a clear signal of commitment to the global market.
We are already seeing the fruits of this labour: daily trading activity surged to over $2.1 billion in February 2026 and IPO activity — particularly for small- and mid-cap companies — has increased.
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However, the surge in listings has met with mixed post-IPO performance. Notable REIT listings, such as NTT DC and UI Boustead, have highlighted a lingering concern: a lack of depth among market participants. While Singapore has a stellar reputation for successful REITs, the mixed performance of new entrants suggests that capital alone isn’t enough; we need a broader base of active buyers and sellers to support these valuations over the long term.
Dual listings: expanding the horizon
The development of dual-listing bridges with exchanges like Nasdaq is a masterstroke in regional positioning. In an era where Southeast Asian companies have global footprints, providing a framework to access capital across multiple venues is essential.
From a trading vantage point, these bridges offer three distinct advantages:
- Access: They provide a familiar legal and regulatory entry point for investors who wish to trade overseas companies within the Singaporean framework.
- Efficiency: They create arbitrage and hedging opportunities that tighten price discovery across different time zones.
- Gateway status: They solidify Singapore’s role as the regional gateway where Asian firms can diversify and broaden their shareholder base.
While dual listings face hurdles like investor awareness and index inclusion, they are a vital complement to domestic initiatives. As our investor base deepens, these bridges will become an increasingly powerful tool for ecosystem growth.
The liquidity challenge: moving beyond headlines
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If the EQDP is the spark, liquidity is the fuel. For practitioners, the underlying health of a market is measured by order-book depth, tight spreads, and the ability to execute large trades without causing excessive price impact. Building this kind of liquidity requires more than just high-level programmes; it requires attracting a diverse mix of participants with varying time horizons and risk appetites.
A healthy market includes local retail, regional institutions, long-only funds, and multi-strategy hedge funds. When these groups interact, they create the continuous trading necessary for true price discovery.
Engaging the next generation and the role of ETFs
One of the most significant opportunities for Singapore lies in capturing the interest of younger, digitally-native investors. Across Asia, a new generation is entering the market through US stocks, cryptocurrencies and user-friendly apps that offer small ticket sizes and easy onboarding.
Singapore must adapt to this shift. By making our own market feel as accessible and informative as these global alternatives, we can cultivate the next generation of long-term shareholders. ETFs and index products are the natural entry point here. They offer low-cost, diversified exposure to broad themes or regional indices.
Given our governance strengths, Singapore is perfectly positioned to host ETFs that provide exposure to the broader Asean region. Well-constructed, actively-marketed ETFs — supported by robust market making — can bridge the gap for first-time investors, making it easier for them to build portfolios centred on locally listed instruments.
Filling the information gap
Liquidity rarely exists in a vacuum; it follows awareness. Investors are only willing to commit capital when they understand a company’s business model and risks. Unfortunately, many small-to-mid-cap Singaporean companies suffer from sparse research coverage. The consolidation of brokerages over the last two decades has made traditional research scarcer.
We must embrace the growing community of independent analysts and content creators. Facilitated by the EQDP GEMS programme, we should encourage high-quality storytelling and consistent information flow for smaller stocks. Whether an investor is in Tokyo, New York, or Singapore, they need grounded views on valuation and risk to participate confidently.
A practitioner’s path forward
Reflecting on 20 years in this market, I see several key areas where we can build on our current foundation to ensure the EQDP’s long-term success:
First, we must lower the barriers for new investors. Diversified index funds, systematic investment plans, and ETFs should be the “on-ramp” to the Singaporean market. Once confidence is built through these products, investors will naturally migrate toward individual stock engagement.
Second, we must foster a technological dialogue. A resilient market requires a variety of participants, from traditional brokers to modern algorithmic quantitative funds. Regulators and exchanges should maintain an ongoing dialogue with these practitioners to ensure that as technology evolves, the market remains fair and efficient for everyone.
Third, we must double down on our role as a regional hub. We should introduce more Asean-focused indices and sector baskets, making the Singapore Exchange (SGX) the undisputed venue for anyone seeking Asian exposure.
Conclusion
Singapore is currently moving from a position of strength, led by leadership that has demonstrated the courage to embrace change. The challenge now is to translate these catalysts into a more vibrant, inclusive, and resilient equity market.
The EQDP has the potential to be remembered as the turning point for Singapore’s capital markets—not just for the billions in capital it mobilized, but for how it transformed our ecosystem. As practitioners, we stand ready to work alongside the Monetary Authority of Singapore, SGX, and the wider financial community to turn this vision of a deep, global equity hub into a lasting reality.
James Leong is the CEO of Singapore-based trading technology platform and asset manager Grasshopper
