The Equity Market Development Programme (EQDP) is a billion-dollar initiative by the Monetary Authority of Singapore (MAS) and the Financial Sector Development Fund (FSDF) to revitalize Singapore’s equities market. It appoints asset managers to inject capital into Singapore-listed companies, targeting small- to mid-caps to increase liquidity, improve research coverage, and drive long-term growth.
As of February 2026, MAS expanded the fund to $6.5 billion, with $3.95 billion allocated to nine appointed asset managers.
The mandate prioritizes actively managed strategies with strong exposure to Singapore public equities, especially SMID-caps (small and mid-caps).
The goal is to reverse liquidity challenges, enhance price discovery, and boost investor participation in the local stock market.
Here we look at 5 Singapore Small & Mid caps that EQDP managers might be buying, why each fits their interest and how they could be building their positions.
| Stock | Ticker (SGX) | Market Cap ($M) |
| Aztech Global | 8AZ | 665 |
| Nanofilm Technologies | MZH | 929 |
| Olam Group | VC2 | 3,886 |
| HG Metal | BTG | 171 |
| Geo Energy Resources | RE4 | 1,100 |
1) Aztech Global (SGX: 8AZ)
Aztech is an electronics manufacturing play tied to IoT and smart devices, which effectively gives it tech exposure.
The company also has a strong cash balance sheet with $120 million in cash and almost no debt, fitting into a “value + yield” mandate for the EQDP managers, with a nearly 5% dividend yield also providing downside support while waiting for a re-rating.
The stock has underperformed since it re-debuted in March 2021 at $1.28 after a prior delisting.
There is a potential re-rating story: from “OEM manufacturer” to a tech-enabled play.
EQDP could look at open market accumulation or possibly block trades from founders or early investors
2) Nanofilm Technologies International (SGX: MZH)
Nanofilm’s share price has fallen heavily over the years due to a weak consumer electronics cycle, but it now sits as a deep value play relative to its IPO price.
From an EQDP standpoint, this is another tech innovation-driven manufacturing play.
As Nanofilm is a home grown company with connections to the local universities, EQDP managers could possibly engagement with management to gain a strategic stake.
The play here is recovery in advanced materials demand, as well as possibly expansion into coatings for other industries in the longer term — such as in automotive or in other industrial coating solutions.
We also just covered Nanofilm here.
3) Olam Group (SGX: VC2)
Olam is a complex conglomerate trading at a sum-of-parts discount. With a current NAV of $1.70 and a share price of $1.03, it is trading at a discount even to book.
Olam is a large company with a strong positioning in soft commodity supply chains (think Coffee, Cocoa and other foods). Its Olam Food Ingredients (ofi) segment generated $28.5 billion in revenue.
There is an ongoing value unlocking process in which Olam has sold 80.01% of Olam Agri (sourcing, processing and distribution of agricultural and edible oils) to the Saudi Agri and Livestock Investment Co (SALIC). SALIC is paying $2.4 billion for this 44.58% stake and has an option to buy the remaining 19.99% at just over $1 billion. Olam will effectively be debt-free after this sale.
In 2025, the OFI segment generated $1.07 billion in EBIT, while the remaining Olam business units which are in various stage of disposal generated $198 million in EBIT.
Focusing on the OFI segment alone, the $1.07 billion in EBIT would translate into a potential Profit after Tax amount of at least $700 million. Given Olam currently trades at a share price of $1.03, representing a market cap of approximately $4b, the stock is currently trading at less than 6 times P/E.
Olam’s biggest shareholder is Temasek with 52.1% while Mitsubishi owns 14.7%. The Kewalram Chanrai Group, CEO Sunny Verghese, and Directors hold another 11.5%. In total, these parties control around 78% of total shares. It is also well known that Temasek and Mitsubishi both entered into Olam when Olam’s share price was well above $2.
EQDP funds favour “value unlock” situations and with the Olam Agri sale nearing completion and catalysts already visible, it should be easier for institutions to gain interest. There could also be further capital events ahead.
4) HG Metal Manufacturing (SGX: BTG)
We think this is another classic EQDP-type play being a small cap with low analyst coverage. However it is cyclical and heavily dependent on the Singapore economy and construction order book. It is also partly dependent on steel prices, although minimal, as it is a fabrication and supply play with minimal inventory.
With Singapore in an infrastructure boom, HG metal is poised to be a beneficiary, especially if steel price normalises or increases.
HG metal has a net $60 million in cash on an equity base of $153 million and is trading at a market capitalization of $172 million. Annualised revenue is approximately $170 million while profit is at $10 million.
While the P/E ratio is about 17 times based on the market capitalization, if we strip out the cash of $60 million, the P/E ratio is closed to 11 times.
HG metal has a recent history of corporate actions, including the issuance of new shares to its majority shareholder to bolster its capital base. It has also recently carried out an acquisition of a property to expand its production facilities and capabilities as well as to increase storage capacity as the current facilities are already operating near full capacity, limiting the Group’s ability to scale and meet growing customer demand. The property has a remaining lease of 12 years and therefore is viewed as a low-cost solution.
EQDP managers could possibly be cornerstone investors on further expansion plans or partake in future corporate actions by HG metal to bolster its capital base.
5) Geo Energy Resources (SGX: RE4)
GER stands out as a relatively unique play with exposure to Indonesia coal
GER owns multiple coal mining concessions in Indonesia (Kalimantan & Sumatra) as well as strategic logistics infrastructure.
GER has >300M tonnes of reserves and is asset light in mining as it subcontracts/outsources its mining operations to third party contractors.
This means that GER has lower fixed cost (i.e., flexible cost base) and will generate higher margins when prices are strong.
GER’s cash cost per tonne for FY2025 was at an average of US$34.10 per tonne (FY2024: US$40.32 per tonne), due to its resilient cost model where its cash cost decreases in tandem with lower Coal prices and lower mining strip ratio at the mines resulting in a cash profit per tonne for FY2025 of US$10.02 (FY24: US$10.37).
Although there are ESG concerns over coal as a fuel source, EQDP managers might still buy as the EQDP mandates does not preclude such issues.
Given the size and liquidity of GER, EQDP managers will probably enter via open market, possibly large block trades.
Not all EQDP managers will buy this but those who prioritize cash yield and valuation over ESG constraints will look at this favourably.
Closing statements
Many investors are looking at the STI NEXT50 index to figure out which stocks the EQDP managers are going to buy next. The size, liquidity and quality of the NEXT50 index are the reasons why we also look into the index as a first reference point.
Of the 5 stocks mentioned here, only Olam and Geo Energy Resources are part of the NEXT50 due to their scale. While the other 3 are not, the EQDP managers have also been looking outside of the NEXT50.
One case in point, Thakral raised $4.26 million through the sale of 2,367,500 treasury shares at $1.80 each through Lion Global Investors (a MAS-appointed EQDP manager) and ICH Synergrowth Fund, representing a 1.89% stake.
Therefore, EQDP managers do not shun away from investments just because the amount might be smaller in nature as diversification is also a key part of their investment strategy, as long as there is alpha to be generated.
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