Singapore's central bank has selected five more asset managers, including Amundi, as part of efforts to improve liquidity in the country's stock market.

The Monetary Authority of Singapore said on Tuesday that these selected managers will receive S$1.45 billion, equivalent to US$1.14 billion.

The five firms are France's Amundi, California-based Franklin Templeton, the asset management arm of UK-registered bank HSBC, London-based M&G Investments, and Natixis Investment Managers, the asset management unit of France's Groupe BPCE.

This allocation is part of the S$6.5 billion that MAS has set aside under its Equity Market Development Programme.

This followed the authority's review of Singapore's stock market, with the programme aimed at boosting the local equity market.

The new funds bring the total allocated under the programme to 14 asset managers to S$5.4 billion.

Other previously appointed firms include BlackRock and Eastspring Investments, a unit of UK-based Prudential PLC.

MAS said it is currently evaluating proposals from a fourth batch of fund managers and expects to complete that assessment next year.

The authority also announced it will commit S$20 million by the end of 2028 to support "market-making activities" for eligible Singapore-listed stocks, such as improving trading liquidity for certain small- and mid-cap stocks as well as newly listed shares.

Thanks to support from the government and related parties, including the development programme led by MAS, Singapore's stock market has been gradually recovering.

The benchmark Straits Times Index has hit repeated record highs in recent months, despite market volatility triggered by geopolitical tensions and shifting investor sentiment toward risk assets.

Macquarie Capital said in its latest report that the programme's new round of fund allocations is expected to support stronger securities trading activity on the country's stock exchange.