Singapore’s Budget 2025 has introduced a series of measures aimed at strengthening the country’s capital markets. If all goes as planned, these initiatives could provide a much-needed boost to the Singapore Exchange (SGX: S68). But what does this really mean for investors like us?

Encouraging More Fund Flows into Singapore

One of the key takeaways from this year’s Budget is the introduction of tax incentives for fund managers who invest substantially in Singapore’s capital markets. The idea is simple: By rewarding fund managers for putting their money into Singapore-listed companies, the government hopes to attract more investments into local stocks, making SGX a more vibrant place for trading. This is a positive move. More investments mean higher trading activity, which can lead to better liquidity—one of the biggest concerns for SGX-listed companies. A market with strong liquidity tends to attract even more investors and fund managers because it’s easier to buy and sell stocks without affecting their prices too much....