Accommodative financial conditions and policy-driven net inflows lifted AUM, with MAS's Equity Market Development Programme allocating S$1.1 billion to Avanda and Fullerton.

2025 Growth and Macro Drivers

Singapore's fund management segment grew 5.1% in 2025, driven by accommodative financial conditions and improving investor sentiment that boosted net inflows across the sector. The headline growth figure reflects a policy-anchored recovery in Singapore's capital markets, with the Monetary Authority of Singapore (MAS) playing a direct role in stimulating domestic equity investment and expanding the breadth of listed products.

The growth occurred against a backdrop of stable regional demand. The broader Asia-Pacific wealth management market continues to see stable inflows from institutional mandates and pension funds, with Singapore's Central Provident Fund and Australia's superannuation sector collectively managing substantial assets that offer specialist managers a revenue stream insulated from fee compression. Institutional mandates, particularly from pension and sovereign funds, continue to provide stable inflows while extending beyond traditional advisory services into areas such as liability-driven investing, according to industry analysis.

Improving sentiment in 2025 was supported by expectations of continued policy accommodation and targeted government intervention in capital markets. Singapore's role as a regional wealth hub—with 1,650 single-family offices operating in the city-state as of 2025 and a wealth management market valued at USD 198 billion—provided a structural base for fund inflows.

MAS Equity Market Development Programme (EQDP)

The primary catalyst behind the 2025 AUM growth was the MAS's S$5 billion Equity Market Development Programme (EQDP), designed to anchor capital in Singapore-listed equities and broaden market participation. In July 2025, MAS announced the appointment of the first batch of EQDP asset managers, placing an initial S$1.1 billion for management with three appointed firms. Two of the appointed managers are Avanda Investment, founded by former GIC Chief Investment Officer Ng Kok Song, and Fullerton Fund Management, a subsidiary of Seviora Holdings and wholly owned by Temasek.

MAS selected the managers based on their commitment to "expand or contribute to the growth of the asset management and research capabilities in Singapore," and noted that the fund strategies must have "a clear focus on improving liquidity and broadening participation in Singapore equities, with significant allocation to small and mid-cap stocks."

In parallel, MAS committed S$50 million to strengthen support for local equity research and cultivate a more vibrant listed product ecosystem under its Grants for Equity Market Singapore (GEMS) framework. The listing grant for primary listed exchange-traded funds (ETFs) was increased from S$100,000 to S$250,000 per listing. New funding sleeves were created for cross-listed and feeder ETFs at S$180,000 per listing, and for depository receipts at S$40,000 per issuance. MAS also introduced new grant funding for research houses to defray costs of disseminating their research, and will support research on private companies with strong local presence.

Amount (S$ million) (S$ million)Source: Orionmano Industries

Wealth Management and Family Office Ecosystem

Singapore's wealth management market, valued at USD 198 billion on a five-year historical analysis, continues to underpin the broader fund management segment. The market serves a sophisticated client base with 1,650 single-family offices operating in Singapore as of 2025, according to industry research. This family office ecosystem generates steady demand for bespoke investment mandates, discretionary portfolios, and alternative asset allocation—all of which contribute to AUM growth in the fund management segment.

The low-tax environment, strong regulatory framework, and growing family office presence further enhance Singapore's appeal as a global wealth management centre. These structural advantages have remained intact throughout 2025, providing a stable platform for fund managers to attract both domestic and cross-border capital. The growth in family offices has also driven demand for Singapore-listed equities and structured products, complementing the MAS's efforts under the EQDP to deepen local capital markets.

Cross-Border Fund Structures and Passports

Singapore's regulatory innovations in fund structures are expanding the channels through which international capital reaches local fund managers. The Variable Capital Company (VCC) structure, modelled after the Irish Collective Asset-management Vehicle (ICAV), enables cross-border collaborations and provides a flexible framework for fund domiciliation. Approved fund firms must adhere to specific requirements, and the VCC framework is closely aligned with existing established vehicles such as the Cayman Mutual Fund and the ICAV.

Fund passports are proliferating across Asia. Based on the UCITS model, cross-border schemes including the ASEAN Collective Investment Scheme (CIS), the Asia Region Funds Passport (ARFP), and the Mutual Recognition of Funds (MRF) framework are expanding regional distribution capabilities for Singapore-domiciled funds. These passport mechanisms allow fund managers to access investor bases across multiple jurisdictions without duplicative regulatory approvals, reducing cost and time-to-market.

Singapore's government has also offered a suite of incentives to attract asset and wealth managers, including protection of intellectual property, allocation of public money for early-stage investments, and reduction of regulatory "red tape." These incentives, combined with the VCC structure and expanding passport networks, are expected to sustain net inflows into Singapore's fund management segment through 2026 and beyond.

The outlook remains constructive: continued policy support for equity depth and research, combined with cross-border fund passport expansions, is expected to sustain net inflows into Singapore's fund management segment. MAS has indicated that other enhancements to boost the Singapore market are being studied, including ways for companies to engage shareholders better, enhancing the attractiveness of the Catalist board as a fundraising platform, and promoting retail investor participation in the market.