Singapore Launches Growth Capital Workgroup to Bridge VC-to-IPO Gap
Singapore launches SG$4B Growth Capital Workgroup to close VC-to-IPO funding gap. GIC, Temasek, and DBS lead initiative addressing deep tech financing challenges across Asia.
Singapore established a Growth Capital Workgroup on February 13, 2026, bringing together executives from GIC, Temasek Holdings, and DBS Bank alongside government agencies to create smoother pathways from venture capital to initial public offerings.
The 15-member workgroup, chaired by Chee Hong Tat, Minister for National Development and Deputy Chairman of the Monetary Authority of Singapore (MAS), will examine the complete financing value chain including deal origination, capital raising, and capital recycling. The initiative follows Prime Minister Lawrence Wong's Budget 2026 announcement identifying a critical gap where "growth-stage capital has tightened globally," particularly affecting deep tech firms requiring larger, longer-term funding.
Government Commits SG$4 Billion to Support Funding Pipeline
Budget 2026 allocated SG$1 billion (US$740 million) to the Startup SG Equity scheme, expanding beyond early-stage funding to support growth-stage companies. The government added SG$1.5 billion (US$1.1 billion) to the Equity Market Development Programme, increasing the total program to SG$6.5 billion (US$4.8 billion) to fund asset managers investing in Singapore equities. Another SG$1.5 billion (US$1.1 billion) will support the Anchor Fund to attract high-quality public listings.
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The workgroup includes private sector leaders Dilhan Pillay (CEO, Temasek Holdings), Tan Su Shan (CEO, DBS Bank), Loh Chin Hua (CEO, Keppel), Mark Konyn (CIO, AIA Group), Andy Tai (Goldman Sachs), Edwin Low (BlackRock), and Jenny Lee (Granite Asia). Public sector representatives include MAS Managing Director Chia Der Jiun and officials from Ministry of Trade and Industry, Enterprise Singapore, and Economic Development Board.
"The supply of capital and the demand for capital presents an opportunity for us as a trusted financial hub," Chee said in announcing the initiative.
Singapore Dominates Regional Venture Capital Market
The workgroup builds on strong market fundamentals. Singapore captured 92% of Southeast Asia's US$2 billion in venture capital funding during the first half of 2025, representing a 7% year-over-year increase. Late-stage funding surged 140% to US$1.4 billion in the first half of 2025 compared to the second half of 2024, indicating ecosystem maturity and a shift toward scalable business-to-business and enterprise infrastructure models.
The initiative addresses a structural challenge in Asian financing. "While bank loans have traditionally been the main mode of financing in Asian economies, more diverse sources of capital will benefit companies and economies in this region," according to a joint MAS and Ministry of Trade and Industry statement.
The workgroup will strengthen various segments including venture capital, private equity, private credit, and securitized assets. Chee identified two priority areas: fostering an entrepreneurial ecosystem for regional startups to raise capital in Singapore, and developing infrastructure financing solutions to address Asia's projected US$417 billion infrastructure funding need by 2040.
Review Targets End-2027 Completion with Interim Updates
The workgroup will examine how to strengthen each segment of the financing ecosystem and create network effects between components. "If you do it well, different components of the ecosystem will reinforce one another, and that network effect would then enable us to be able to grow the range of services and options," Chee told The Business Times.
The review targets completion by end-2027 with interim updates throughout the process. The workgroup remains open to exploring additional opportunities through industry consultations. Budget 2026 also includes plans for a Nasdaq-SGX Global Listing Board to simplify dual listings, complementing the workgroup's mission to create seamless pathways from private funding to public markets.
The initiative targets both local and foreign entrepreneurs to establish and raise capital in Singapore, with focus on job creation and regional scaling as part of broader economic growth strategy.
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