Singapore’s equity market has delivered returns that surprised many analysts in 2025, with the Straits Times Index climbing more than 20% through the first three quarters. The gains reflect a combination of factors: policy reforms designed to deepen capital markets, attractive dividend yields that appeal to income-focused portfolios, and defensive positioning that has drawn global attention during a period marked by trade uncertainty.
For investors holding large positions in Singapore-listed equities or real estate investment trusts, the rally has increased portfolio values substantially. Yet holding large percentages of net worth in a small group of assets leaves investors exposed if those positions decline.
Equities-backed financing from alternative providers like EquitiesFirst provides one method to address this challenge, enabling equities holders to access capital to diversify portfolios without liquidating long-term positions.
Policy Reforms Drive Structural Shifts
The Monetary Authority of Singapore introduced a package of market reforms in February 2025, allocating S$5 billion through its Equity Market Development Programme. The initiative is designed to strengthen local fund management capabilities and attract commercial capital to Singapore-listed equities. Separately, authorities adjusted the Global Investor Programme to require S$50 million in Singapore equities for family offices with assets exceeding S$200 million.
These measures follow years of structural underperformance relative to regional peers. Singapore’s equity market has long traded at a valuation discount despite housing globally competitive companies across banking, technology, and real estate sectors. The reforms seek to address liquidity constraints that have kept institutional allocations muted.
Early results suggest momentum. IPO activity accelerated through the year, with the city-state ranking ninth globally in proceeds raised and leading Southeast Asia. Centurion Accommodation REIT completed Singapore’s second-largest offering of the year in September, raising S$771.1 million.
Transaction volumes in capital markets and real estate climbed to S$13.4 billion in the first half of 2025, up 27% year-on-year. Industrial assets led the surge, driven by demand for data centers and logistics facilities tied to e-commerce growth. Hospitality properties also attracted capital as tourism recovered to 11.6 million visitors through September, a 2.7% increase.
REITs Regain Favor as Rates Stabilize
Singapore REITs delivered strong operational performance after enduring pressure from rising financing costs through 2023 and early 2024. Retail-focused trusts benefited from recovering consumption and positive rental reversions across suburban malls. Industrial and logistics REITs maintained resilient demand tied to supply chain infrastructure, while hospitality REITs positioned for recovery as tourism strengthened.
Diversified REITs holding assets across retail, office, industrial, and hospitality segments offer exposure to multiple sectors within a single vehicle.
Average REIT yields were projected at 5-6% for 2025, competitive relative to other assets in a lower interest rate environment. Analysts noted that falling interest expenses should improve distributable income, particularly for trusts carrying higher debt loads from the prior tightening cycle.
Meanwhile, the sector’s regulatory framework continues to differentiate Singapore REITs from peers in other markets. Mandatory disclosure requirements, leverage caps at 50%, and stringent governance standards provide transparency that can appeal to institutional allocators.
For investors who accumulated REIT positions during the downturn, the recovery creates an opportunity to reassess portfolio construction. EquitiesFirst financing enables holders to unlock liquidity from appreciated assets while maintaining exposure.
Concentrated Holdings Meet Liquidity Solutions
Singapore’s wealth accumulation has accelerated in recent years, and this has been reflected in property market dynamics. Public housing units selling for S$1 million or more reached a record 415 transactions in the second quarter of 2025, nearly 75% of the prior year’s full-year total. The data points to underlying confidence in local assets and sustained domestic consumption.
Singapore’s wealth holders often maintain concentrated equity positions—either through stakes in listed companies, employee stock programs, or accumulations of blue-chip dividend payers. Traditional financing approaches present limitations for this type of wealth. Selling positions to raise capital triggers immediate tax consequences and can permanently eliminate future upside.
Equities-backed lending has emerged as an alternative that addresses these constraints. The model aligns interests—providers of the financing become co-investors in the pledged securities during the term, managing positions as part of a diversified portfolio.
The approach has gained traction across Asia, where family offices and entrepreneurs frequently hold illiquid stakes in operating businesses alongside concentrated public equity positions. EquitiesFirst maintains offices throughout Asia to accommodate growing demand for flexible capital in the region.
Implications for Portfolio Decisions
Singapore’s equity market outperformance has created natural reassessment points for investors. Positions acquired at lower valuations have appreciated materially. The question becomes whether to crystallize gains or maintain exposure amid continued policy support and improving market infrastructure.
Equities-based financing has the potential to provide an alternative to that binary choice. Rather than selecting between liquidity and long-term positioning, investors can access liquidity that can fund diversification into alternative assets, support business investments, or provide working capital for operating companies—while preserving exposure to core equity holdings.
The approach carries particular relevance for holders of Singapore REITs and dividend-paying blue chips. These assets generate regular cash flow through distributions and dividends, which can service debt obligations while the underlying capital appreciates. The structure enables investors to monetize a portion of their position’s value without triggering distribution interruptions or tax events.
Market conditions appear supportive. The Monetary Authority of Singapore maintained its monetary policy settings unchanged through its October review, citing stronger-than-expected economic performance. The stability signals confidence in domestic fundamentals even as external risks persist.
For investors who have benefited from Singapore’s equity market rally, the next phase involves capital deployment decisions. Policy reforms have created structural tailwinds. Valuations remain reasonable relative to historical averages. And alternative financing mechanisms have matured to provide flexible liquidity options.
