SINGAPORE: Singapore’s recent stock market reforms are poised to significantly increase the number of public listings in 2025, with experts predicting a surge of up to 50%. According to a recent Singapore Business Review report, these measures, announced by the Monetary Authority of Singapore (MAS) in February, aim to lower IPO costs, enhance valuations, and improve overall market conditions, making the Singapore Exchange (SGX) a more attractive destination for companies considering going public.
Strong support for IPOs
The reforms have already sparked increased interest from companies exploring initial public offerings (IPOs), according to Ooi Chee Keong, a partner at Forvis Mazars. He noted that the firm has received a notable uptick in inquiries about IPO prospects. The new measures include a 20% corporate tax rebate for primary listings, a 10% rebate for secondary listings, and a $5 billion market development program. These changes aim to lower the cost of going public while enhancing the financial appeal for both investors and companies.
“The tax incentives and equity market development programme will lower IPO costs, improve valuations, and enhance proceeds from public offerings,” said Chee Keong. These developments are expected to drive more companies from sectors like financial services, technology, green energy, healthcare, and biotechnology to consider listing on the SGX.
Drawing inspiration from regional success
The success of similar reforms in countries like South Korea and Japan also serves as a beacon for Singapore’s stock market strategies. Christopher Wong, a client portfolio strategist at Fidelity International, pointed out that both nations saw an increase in IPO activity after implementing similar changes to their equity markets. These examples highlight how well-targeted reforms can stimulate investor confidence and attract new listings.
“Singapore’s market reforms are designed to create a more competitive and appealing environment for IPOs, much like those that led to increased listings in other markets,” Wong explained.
Ensuring quality listings for long-term growth
While the reforms are expected to attract a broad array of companies, experts emphasise the need for high-quality listings to maintain market integrity and investor trust. Jason Saw, group head of investment banking at CGS International Securities, highlighted the potential for companies from Southeast Asia, especially Thailand and Indonesia, to list in Singapore. Additionally, Saw expects Chinese companies looking to raise capital for expansion to consider the SGX.
However, there is also a call for careful vetting of prospective listings. Rick Chan, managing partner at Forvis Mazars, suggested that companies applying for an IPO should provide detailed forecasts and scalability plans. “Valuation reports should be mandatory, as they help set fair issue prices and attract more investors,” Chan added.
As Singapore’s stock market landscape evolves, experts agree that attracting companies from growth sectors like technology, healthcare, and consumer discretionary will be key to diversifying the SGX and ensuring sustained market growth.