Singapore’s stock market has faced challenges such as thin trading volumes and more delistings than listings. This has caused some to label the market as “boring” and “unexciting.” The turnover velocity at the SGX has also been significantly lower compared to other exchanges in the region.
To address these issues, the Monetary Authority of Singapore established a task force to evaluate measures to improve the vibrancy of the Singapore equities market. The review group will focus on fostering listings, enhancing regulations, and identifying ways to encourage private sector participation. By creating a more dynamic equities market, Singapore aims to enhance its reputation as a vibrant enterprise and financial hub.
A liquid market is crucial for companies to access capital for expansion and for investors to participate in the growth of quality companies. By increasing market liquidity and listings, Singapore can strengthen its innovation and start-up ecosystem, as well as its asset and wealth management sectors.
The task force, chaired by Chee Hong Tat, Singapore’s second minister of finance, includes key members like Koh Boon Hwee, the current chairman of the SGX. The SGX has welcomed the initiative and pledged to work closely with the review group. SGX RegCo, the regulatory arm of the exchange, aims to enhance accountability, transparency, and market discipline to boost market confidence.
To revitalize Singapore’s stock market, a whole-of-ecosystem approach is needed to implement transformative actions that will improve liquidity and listings. Taking lessons from successful programs in Japan and South Korea could provide valuable insights for the Singapore market. By fostering a more vibrant equities market, Singapore can strengthen its position as a leading financial hub in the region.