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SINGAPORE: Streamlined Crowdfunding Introduced for SMEs

Singapore has announced a series of measures aimed at improving access to securities-based crowdfunding (SCF) for SMEs. As of June 8, companies raising capital from accredited and institutional investors are no longer required to have a S$100,000 (US$74,460) security deposit lodged with the Monetary Authority of Singapore (MAS). The base capital requirement has also been reduced, falling from S$250,000 to S$50,000. At the same time, the operational risk requirement has been reduced from S$100,000 to S$50,000. [1]

In an additional move, companies seeking to raise less than S$5 million in a year are no longer required to provide a prospectus. In order to minimise uncertainty, however, SMEs will still be required to disclose key risks to their investors in a documentable manner.

The MAS, which first proposed the reforms in early 2016, announced the most recent changes following a period of consultation in March. The changes to SCF requirements are largely aimed at strengthening SMEs throughout the city-state, as well as protecting investor interests.

[1]  Response to Feedback Received on Facilitating Securities Based Crowdfunding


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