Singapore’s central bank, the Monetary Authority of Singapore, recently announced the establishment of a task force to evaluate measures aimed at improving the city-state’s stock market. The task force is expected to focus on addressing market challenges, fostering listings, and enhancing regulations to boost market revitalization and investor confidence.
Despite the Straits Times Index showing signs of growth in recent years, Singapore’s stock market continues to face issues such as thin trading volumes and more delistings than listings. Observers have criticized the exchange as being “boring” and “unexciting,” with turnover velocity at the SGX lagging behind other major exchanges in the region.
The task force aims to identify methods for encouraging private sector participation in the market, including from capital market intermediaries, investors, and listed companies. By addressing these issues, the task force hopes to improve the attractiveness of Singapore’s equities market, thereby enhancing the city-state’s image as a vibrant enterprise and financial hub.
The task force will be chaired by Chee Hong Tat, Singapore’s second minister of finance, and will also include members like Koh Boon Hwee, the current chairman of the SGX. The SGX has welcomed the announcement and pledged to work closely with the task force to implement necessary changes. SGX RegCo, the regulatory arm of the exchange, will also focus on increasing accountability, transparency, and market discipline.
The establishment of a task force to evaluate and improve Singapore’s stock market is a step in the right direction. By addressing market challenges, fostering listings, and enhancing regulations, the task force aims to revitalize the market and boost investor confidence. It is imperative for all stakeholders to work together in a whole-of-ecosystem approach to bring about transformative actions that will drive liquidity and listings in Singapore’s equities market.
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