Singapore’s new Growth Capital Workgroup comes at a time when companies are raising progressively larger amounts of private capital before entering public markets.

The workgroup chairman, Minister for National Development and Deputy Chairman of the Monetary Authority of Singapore Chee Hong Tat, described a dual trend in the region. On one side, companies across Asia are expanding and building capital requirements as they scale. On the other side, investors are seeking exposure to Asia and diversification opportunities in the region.

He said the combination of growing capital demand and growing investor interest creates an opportunity for Singapore as a trusted financial hub. The intention is therefore not centred on a single financing stage but on connecting capital and companies across stages of growth.

Singapore already supports companies from startup through to eventual listing. Recent efforts under the equities market development programme have generated interest in public markets. The new workgroup now examines earlier stages before companies are ready for listing.

The exercise sees private capital, bank lending and public markets as complementary rather than competing channels. Venture capital may support early growth, private capital may support expansion and public markets may serve some firms at a later stage.

A workgroup to examine the full capital formation chain

The Growth Capital Workgroup announced at Singapore’s Budget 2026 will bring together representatives from government and industry to study the financing ecosystem and recommend measures positioning Singapore as a regional growth capital centre.

Its coverage spans venture capital, private equity, private credit and securitised assets rather than focusing on a single segment. The objective is to understand how different financing types support companies at different stages.

The review examines deal origination, capital raising and mobilisation and capital recycling across the value chain. This lifecycle framing looks at how funding progresses rather than how each market performs in isolation.

Authorities expect interim updates with the full review concluding by end-2027. The process is consultative and solutions are not predetermined at this stage. The intent is to identify opportunities first and design schemes later in collaboration with industry participants.

Attracting companies and entrepreneurs to raise capital in Singapore

The initiative is not limited to supporting existing Singapore-based firms. Chee said the ecosystem should allow entrepreneurs from Singapore and the region to set up companies locally and raise capital there.

Regional connectivity forms a key part of the proposition. Some companies may have viable business models but face constraints raising capital in their home markets.

Singapore can therefore act as a venue where such firms access investors through venture capitalists, private funds and financial institutions connected to the region.

Technology startups were highlighted as an area where stronger capabilities may be needed. Understanding financing needs and linking founders to appropriate investors is seen as part of developing the ecosystem.

If successful, this would support both economic activity and financial services employment while expanding the range of companies able to access funding through Singapore.

Bridging private funding and public markets

Asked whether the initiative aims to close the gap between private funding and initial public offerings (IPOs), Chee confirmed that it does.

Companies require different financing at different stages. Some benefit from venture funding early, later move to private capital and eventually access public markets depending on development stage.

The objective is continuity rather than separation. Each component of the ecosystem should reinforce the others.

A company may therefore tap more than one financial market over time. The review focuses on transitions between stages rather than performance of a single market.

The network effect between funding channels is expected to broaden services available to both investors and companies.

Developing capabilities in the ecosystem

Chee said Singapore has performed well supporting capital raising but gaps remain between emerging opportunities and existing capabilities.

One area is improving understanding of high-technology startups and connecting them with venture and private funds that can support growth through successive stages.

Some firms may eventually reach listing readiness if such pathways exist. The emphasis is on enabling progression rather than guaranteeing listing outcomes.

Authorities will initially gather industry feedback rather than prescribe solutions. Policy adjustments may follow once workable approaches are identified.

Government and industry collaboration therefore forms part of the design process rather than an implementation step.

Sources of capital and investment focus areas

Capital is expected from multiple investor groups rather than a single pool. High-net-worth individuals and family offices are potential contributors but institutional investors also form part of the ecosystem.

Authorities aim to create conditions where global investors see stable long-term returns and participate even without a local presence.

Two areas were identified for early attention: growth companies including startups and infrastructure financing.

Infrastructure projects require long-duration capital, while growth companies require scaling capital. The financing structures therefore differ but both align with Singapore’s role as a financial hub.

Different investor groups may participate depending on the nature and maturity of investments.

Operational infrastructure and digital asset frameworks

In response to a question on operational complexity in originating, distributing and recycling private assets, Chee said several ongoing MAS initiatives relate to these areas.

Workstreams on digital assets and tokenisation are already being pursued with industry participants and relevant ideas may feed into the workgroup’s discussions.

Some initiatives will not be driven solely by the workgroup because they exist as separate programmes. The review can incorporate them where relevant.

Authorities indicated willingness to adjust policies and test ideas before scaling them. This includes taking calculated risks in developing new approaches.

The intention is to expand options available to companies rather than implement a single structural reform.

Learning from earlier policy experiments

Chee cited previous examples of collaboration between regulator and industry to illustrate the approach. One is the equity market development programme under the equities market review. Another is work with Nasdaq allowing companies to list in both markets using a single prospectus.

These initiatives emerged from consultation rather than predetermined design. Ideas were tested before wider adoption. The growth capital review will follow a similar process of identifying opportunities and scaling viable solutions.

This method relies on industry feedback and experimentation rather than fixed policy templates.

An ecosystem rather than a single market reform

The workgroup’s focus on origination, mobilisation and recycling reflects a lifecycle perspective of capital formation. Private markets, bank financing and public markets are framed as successive funding stages rather than alternatives.

Companies may therefore progress through financing channels as their capital requirements change. The initiative seeks to broaden financing pathways available to firms operating in Singapore and across Asia.

The objective is to strengthen interactions between funding sources so companies can move through growth stages within a connected financial ecosystem.