Recently, the Monetary Authority of Singapore (MAS) announced that it would enhance the Grant for Equity Market Singapore (GEMS) scheme. Initially introduced in early 2019, the GEMS scheme sought to increase support for companies seeking to list and to further develop Singapore’s equity research ecosystem.
Despite Singapore’s standing as a provider of financial services, particularly in the Asia Pacific region, our stock market continues to be relatively small. The GEMS programme is meant to help the Singapore Stock Exchange (SGX) in its development.
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Grant details
GEMS has three components:
(i) a Listing Grant that helps issuers defray some of their listing costs;
(ii) a Research Talent Development Grant to groom equity research talent and enrich research coverage of Singapore-listed companies;
(iii) a Research Initiatives Grant to support initiatives that will catalyse public market activities in Singapore and boost the development of Singapore’s equity research ecosystem.
Listing Grant
Companies seeking to get listed on the Singapore stock exchange (SGX) are eligible to receive funding for up to 70 per cent in listing expenses, capped at S$2 million for companies above S$1 billion valuation and S$1 million for smaller enterprises. The S$2 million cap was raised from S$1 million, specifically to better support listings for unicorn companies in Singapore.
The grant will also be expanded to support listings by special purpose acquisition companies (Spacs).
Expenses which are eligible for this grant include:
· Audit fees
· Intangible assets valuation and evaluation related expenses
· Independent market research fees
· Issue manager and sponsor fees
· Legal fees
· SGX listing fees
· Underwriting and placement fees
For more information on the listing grant, one can refer to the infographic below.
Photo Credit: MAS
Research Talent Development Grant
The research talent development grant is designed to groom a pipeline of equity research analysts and retain experienced research talent in an effort to push research coverage primarily of listed mid and small-cap enterprises.
The grant will co-fund 70 percent of the salaries over two years for fresh graduates, capped at S$4,200 per month.
Meanwhile, experienced professionals will receive funding for 50 percent of salaries, capped at S$6,000 per month. This will last for two years for Singapore Citizens, and one year for Singapore Permanent Residents.
Eligible applicants for this research talent development grant largely comprise of financial institutions, including brokers, fund managers, venture capitals, private equities, private banking, credit rating agencies with equity research capabilities, and independent research providers based in Singapore.
Photo Credit: MAS
Research Initiatives Grant
The Research Initiatives Grant supports initiatives that will catalyse public market activities in Singapore and boost the development of Singapore’s equity research ecosystem. Such initiatives could include new format of equity research, or innovative ways to distribute research and disseminate enterprise information to investors.
Projects would be given consideration if it demonstrates the potential to:
• Enhance primary market activity and/or increase secondary trading activity on Singapore’s public equity market
• Lead to enhancement of the research industry’s medium to long-term competitiveness or facilitate Singapore’s financial industry to move into new or under-tapped areas of businesses
• Result in new innovative financial products or processes
• Develop technology or infrastructure necessary for the development of Singapore as an international financial centre
• Address best practices or international benchmark issues in areas such as compliance, regulations, policies, development, or industry strategies, risk management and manpower
Interested applicants will need to approach MAS with their proposal for further discussion.
How to Apply
Interested applicants can write to fsdf@mas.gov.sg for more information.
Applicants of the Listing Grant should submit their applications no later than 3 months after the issuance or listing date.
Applicants of the Research Talent Development Grant and Research Initiatives Grant should submit their applications prior to hiring or commencement of projects.
The GEMS scheme is valid until 31 December 2023.
Read also: COVID-19: MAS-SFA-AMTD FinTech Solidarity Grant 2020
Read also: P-Max Grant: Claim Up to S$10,000 For SMEs to Hire/ Retain New Local PMETs - Extended till End 2021
Read also: How can Employers Tap on The Work-Study Programmes to Bring in New Hires?
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