Singapore is considering major changes to its struggling stock market as it falls behind other regional exchanges, according to sources familiar with the discussions. The Singapore Exchange (SGX) is reviewing proposals from the Singapore Venture & Private Capital Association (SVCA), which includes state funds GIC and Temasek, as well as local and global venture firms.
The government is taking a keen interest in the proposals, recognizing the importance of a strong stock market to Singapore’s national agenda. The discussions come as more south-east Asian companies choose to list in the US rather than in Singapore.
SGX chair Koh Boon Hwee, a seasoned business veteran, has been actively involved in the discussions and is open to new ideas. The Monetary Authority of Singapore (MAS) has confirmed that they are reviewing the proposals, while SGX, the Economic Development Board (EDB), and the Ministry of Trade and Industry (MTI) declined to comment.
Despite Singapore’s rise as a financial center, its stock exchange has faced challenges such as low volumes and questions about corporate disclosure practices. Delistings have outnumbered listings, and the exchange has struggled to attract new listings and funds raised.
The proposals being considered include mandating stock market participation from private capital, allowing pension and sovereign money to be invested in the stock market, and collaborating with other south-east Asian stock markets. However, some industry experts are skeptical that these measures will be enough to reverse SGX’s downward trajectory.
While previous efforts to attract listings and introduce new regulations have not yielded significant results, the government and SGX are determined to find solutions to strengthen the stock market and maintain Singapore’s position as a leading financial hub in the region.
