Investing Updates: Why Retail Investors In Singapore Should Care About MAS’s Financial Sector Development Fund (FSDF)

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https://dollarsandsense.sg/mas-financial-sector-development-fund-fsdf/

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Singapore retail investors may not think much about market infrastructure, but the Monetary Authority of Singapore’s Financial Sector Development Fund (FSDF) plays a significant role in shaping their investing experience. In Budget 2026, the FSDF received a fresh $1.5 billion injection, following a $2 billion top-up in 2024. The funds are aimed at boosting participation in Singapore equities and strengthening the fund management industry.

The FSDF supports initiatives such as professional training, fintech development, bond issuance subsidies and equity market programmes. A key example is the Equity Market Development Programme, under which MAS has deployed $3.95 billion to nine asset managers to invest in Singapore-listed stocks, especially small- and mid-cap firms. This improves liquidity, narrows bid-ask spreads and increases trading activity. In Q3 2025, average daily turnover rose 16% year-on-year to $1.53 billion, while small- and mid-cap turnover surged 88% quarter-on-quarter.

Greater institutional participation also leads to better analyst coverage, improved corporate governance and more transparent valuations. MAS has funded over 900 research reports on more than 130 SGX-listed companies since 2019, giving retail investors free access to valuable insights.

FSDF initiatives have also lowered barriers to entry. Reduced board lot sizes — including 10-share lots for stocks above $10 — make investing in higher-priced shares more accessible. Improvements to IPO processes and grants such as GEMS have supported 16 new listings in 2025, expanding investment choices.

Beyond markets, FSDF backs financial literacy through MoneySense and SGX Academy events, benefiting over 21,000 participants last year. Overall, the FSDF strengthens market liquidity, accessibility, education and opportunities — indirectly improving outcomes for everyday investors.

Comments:

Good information.