Singapore’s stock market has faced numerous challenges over the years, including thin trading volumes and a higher number of delistings compared to listings. Despite the Straits Times Index rising in three of the last four years, the market has been described as “boring,” “unexciting,” and even a “zombie” bourse in 2021. This lack of vibrancy has raised concerns among market observers and analysts, highlighting the need for innovative solutions to enhance market performance.
The Monetary Authority of Singapore (MAS) recently announced the establishment of a task force to review and bolster the city-state’s equity market. The panel will focus on addressing market challenges, fostering listings, and enhancing regulations to boost investor confidence. The group aims to encourage private sector participation, including from capital market intermediaries, investors, and listed companies. By promoting a dynamic equities market, MAS believes that Singapore can strengthen its position as a vibrant enterprise and financial hub, complementing other key sectors like innovation, start-ups, and wealth management.
The task force, chaired by Chee Hong Tat, Singapore’s second minister of finance, includes key industry figures like Koh Boon Hwee, the current chairman of the SGX. The group plans to draw lessons from successful initiatives in other markets, such as the “value up programs” in Japan and South Korea, to revive interest in the SGX. By increasing transparency, accountability, and market discipline, SGX RegCo aims to attract more investors and companies to the exchange. A collaborative, whole-of-ecosystem approach is essential for implementing transformative actions that will drive liquidity and listings growth in Singapore’s equities market.
The efforts to revitalize Singapore’s stock market are crucial for enhancing its competitiveness and attracting a broader range of investors. By addressing market challenges, fostering listings, and enhancing regulations, MAS aims to create a more vibrant and dynamic equities market in Singapore. The collaborative approach taken by the task force, along with the support of industry stakeholders like SGX, will be key to achieving sustainable growth and investor confidence in the market. Only through innovative and transformative actions can Singapore’s equities market regain its vibrancy and position itself as a leading financial hub in the region.