SINGAPORE: Singapore is ready to make “bold changes” to revitalise its struggling stock market, according to Second Minister for Finance, Chee Hong Tat. Mr Chee, who leads a task force to strengthen the local equities market, highlighted that Singapore must take risks to succeed.
The task force’s main goal is to remove outdated rules, encourage more high-quality listings, and boost liquidity.
He noted that potential measures, such as reducing listing costs and expanding equity derivatives, will be introduced gradually over the next 12 months, The Edge Malaysia reports.
The task force includes the Monetary Authority of Singapore (MAS), Singapore Exchange Ltd, Temasek Holdings Pte Ltd, and other key industry players.
Speaking at the Securities Investors Association Singapore (Sias) 25th-anniversary event, which also marked the Corporate Governance Conference 2024 launch, he said that revitalising Singapore’s equity market “is not an easy task”, given the global market headwinds and increasing competition.
However, he noted, “We are prepared to make changes and try new ideas. Because if we don’t try, our chances of success is zero.” He added, “If we take some calculated risks and try, it is not a guarantee we will succeed, but we have a chance to turn things around.”
The recent initiatives come in response to increasing demands from industry stakeholders to revive Singapore’s equities market, which has been struggling with weak performance, declining market capitalisation, and low trading volumes.
Mr Chee noted that they will focus on Singapore’s strengths and value proposition to investors and companies looking to list.
One area being explored is streamlining the prospectus disclosure requirements for companies seeking to launch initial public offerings (IPOs) and secondary listings. The Monetary Authority of Singapore is also considering easing certain checks currently required for retail investors.
Other possible changes mentioned include offering incentives to encourage listings, reducing listing costs, and improving research coverage.
The group may also explore strategies to attract growth companies from emerging markets, particularly in the fintech, innovation, and sustainability sectors.
The group will also examine ways to boost liquidity, such as incentivising market makers to aid price discovery, broadening stock indices, and expanding of equity market derivatives.
“We are prepared to make bold changes,” Mr Chee said but pointed out that important trade-offs must be carefully discussed and assessed. /TISG
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