Singapore’s stock market has been facing challenges such as thin trading volumes and more delistings than listings, leading to a lackluster reputation in the eyes of investors. The turnover velocity at the SGX has been considerably lower compared to other major exchanges like Hong Kong and Japan, indicating a lack of market liquidity.
To address these issues, the Monetary Authority of Singapore has established a task force dedicated to evaluating measures to improve the vibrancy of the Singapore equities market. The task force will focus on fostering listings, enhancing regulations, and identifying ways to encourage private sector participation. It aims to create a more dynamic equities market that will not only benefit companies in their capital formation but also attract investors looking to participate in the growth of quality companies.
The Role of the Review Group
Chaired by Chee Hong Tat, Singapore’s second minister of finance, the review group includes members such as Koh Boon Hwee, the current chairman of the SGX. The group will work towards revitalizing the market by implementing strategies learned from successful programs in countries like Japan and South Korea. SGX has expressed its support for the initiative and will collaborate closely with the review group to achieve its objectives. SGX RegCo, the regulatory arm of the exchange, will also play a crucial role in enhancing accountability, transparency, and market discipline.
A comprehensive approach involving all stakeholders is crucial to bringing about transformative changes in Singapore’s equities market. By improving liquidity and increasing listings, Singapore can enhance its reputation as a vibrant enterprise and financial hub. This initiative will not only complement the existing ecosystem but also boost innovation, start-up activity, private markets, and asset management sectors in the country.
The task force established by the Monetary Authority of Singapore represents a significant step towards revitalizing the Singapore stock market. By addressing key challenges, fostering listings, and encouraging private sector participation, the initiative aims to create a more dynamic and attractive equities market that will benefit both companies and investors. Through collaborative efforts and strategic reforms, Singapore can once again establish itself as a leading financial center in the region.