p $75mn grant to boost Singapore as enterprise financing hub | 2019-01-15

$75mn grant to boost Singapore as enterprise financing hub

15 January, 2019 12:00 AM printer

SINGAPORE: The Monetary Authority of Singapore (MAS) will launch a new S$75 million grant to help enterprises seeking to raise capital through Singapore's equity market.

Finance Minister Heng Swee Keat announced this at the UBS Wealth Insights conference on Monday, report agencies.

The Grant for Equity Market Singapore (GEMS) - a three-year initiative - will be launched on Feb 14 as the country aims to enhance its role as an enterprise financing hub. It will have three components - a Listing Grant to defray part of initial public offering costs, a Research Talent Development Grant to groom equity research talent, and a Research Initiatives Grant to support crowd-sourced initiatives to propel Singapore's equity research system.

The Listing Grant with different funding tiers will encourage eligible enterprises across a range of sectors to list on the Singapore Exchange (SGX).

Tech companies seeking to list stand to receive the highest level of funding of 70 per cent of listing expenses with a cap of S$1 million. Companies in high growth sectors may receive 20 per cent funding of its listing expenses, capped at S$500,000. High growth sectors, identified by the Committee on the Future Economy report, are digital cluster, advanced manufacturing, hub services, logistics, urban solutions & infrastructure and healthcare.

Tech and high growth companies must have a minimum market capitalisation of S$300 million to be eligible.

Companies from other sectors will also receive help, and can get 20 per cent of listing expenses, capped at S$200,000. These companies do not need to meet a minimum market capitalisation to be eligible for the grant. To help enhance research coverage and groom equity research talent the Research Talent Development Grant will co-fund 70 per cent of the salaries for fresh graduates hired as equity research analysts for a two-year period. Re-employed experienced equity research analysts with at least 5 years experience will get help too, with 50 per cent of salaries co-funded for a one-year period.