New MAS-MTI Growth Capital Workgroup aims to close gap between private capital and public listings

[SINGAPORE] A newly formed workgroup aimed at enhancing Singapore’s growth capital ecosystem will seek to bridge the gap between private funding and public listings, creating a smoother pipeline from venture capital stage to initial public offerings (IPOs).

Speaking at a doorstop interview on Friday (Feb 13), deputy chairman of the Monetary of Singapore (MAS) Chee Hong Tat said that the initiative aims to ensure companies can access suitable funding at every stage of growth.

He noted that this approach must be viewed as part of an ecosystem – while some may initially benefit from venture capital, as they scale, they will be able to access additional funding from private markets and, eventually, public markets. “If you do it well, different components of the ecosystem will reinforce one another, and that network effect would then enable us to be able to grow the range of services and options for companies and investors,” Chee, who is also minister for national development, explained.

As announced by Prime Minister Lawrence Wong in the Budget 2026 speech, the new group will work closely with industry stakeholders to position Singapore as a leading centre for growth capital. This will be supported by MAS and the Ministry of Trade and Industry (MTI).

A joint statement by MAS and MTI revealed additional details on Friday, stating that the Growth Capital Workgroup will recommend measures to support the financing needs of companies across all growth stages.

Diverse funding sources

According to the statement, while bank lending has traditionally been the main mode of financing in Asian economies, more diverse sources of capital will better support companies and regional economies.

“As global investors diversify across markets to manage risks and capture new growth opportunities, there is potential for Singapore to position itself as a leading centre for growth capital in Asia,” wrote MAS and MTI.

The new workgroup will include private sector leaders with expertise in business, asset management and capital markets, as well as public sector representatives responsible for enterprise development and financial policy.

Among the members are Bryan Yeo, group chief investment officer at GIC; Chia Der Jiun, managing director at MAS; Dilhan Pillay, executive director and chief executive officer at Temasek Holdings; Jermaine Loy, managing director at Economic Development Board; and Tan Su Shan, CEO of DBS.

Building on the momentum of the Equities Market Review Group, the workgroup will focus on strengthening various segments of the growth capital markets, including venture capital, private equity, private credit and securitised assets.

It will study the full value-chain of financing from deal origination, capital raising and mobilisation, and capital recycling.

This effort aims to further boost Singapore’s startup ecosystem and support a new generation of enterprises as they scale regionally and globally.

Capturing regional opportunities

Asia presents both growing demand for capital and increasing investor appetite for regional exposure and diversification, noted Chee. He added: “The supply of capital and the demand for capital presents an opportunity for us as a trusted financial hub to see how we can benefit.”

Chee said that while Singapore already has elements of a growth capital ecosystem already in place, more can be done to support companies at earlier stages in their development before they are ready to list.

The deputy chairman of MAS sees private capital markets as valuable complements to traditional bank lending and public markets – offering companies a broader range of funding options.

Areas of interest

Based on discussions with industry players, Chee identified two possible areas for further exploration.

The first is fostering an ecosystem that supports entrepreneurs, both from Singapore and the wider region, to establish and raise capital for their businesses in the country. This would be a valuable addition to Singapore’s economic growth strategy, he said.

The second area involves infrastructure, with substantial infrastructure development expected in the region that will require long-term capital. Chee noted that this aligns with Singapore’s “strength as a trusted financial hub”.

While these areas are a priority, he pointed out that the workgroup remains open to exploring other opportunities, based on further consultations with industry stakeholders.

The workgroup aims to complete its review by end-2027.

Market observers expressed support for the workgroup. Paul Santos, managing partner at Wavemaker Partners, hopes that it will catalyse the creation of a robust pipeline of startups that an eventually go public in Singapore.

“The good work done by the MAS Equity Market Development Programme will be less impactful if there aren’t enough exciting startups worth listing here,” he told BT.

Santos observed that more developed startup ecosystems like those in the United States, Europe, China and India benefit from having local investors across all the startups stages from seed to venture to growth. 

Ong Hwee Li, CEO of investment banking firm SAC Capital, believes that shortage of capital is not such an issue. The bigger gap is in sustaining investor interest and participation in the Republic’s capital markets. “What is lacking is the promotion of investing in the Singapore capital markets,” he added. 

From a corporate governance perspective, Professor Lawrence Loh, director at the NUS Centre for Governance and Sustainability, said that the workgroup will have to determine optimised levels of acceptable risks to achieve market growth, particularly for public equities which have to compete with their private counterparts.