Signage for the Monetary Authority of Singapore (MAS) is displayed outside the central bank’s headquarters in Singapore.
Sam Kang Li | Bloomberg Getty Images
Central Bank of Singapore already established a task force to strengthen the city-state stock market.
The Monetary Authority of Singapore has announced that a review group will evaluate measures to “invigorate” Singapore’s equity market.
MAS said on Friday the panel will focus on addressing market challenges, developing listings, and facilitating market revitalization, as well as improving regulations to facilitate market growth and improve investor confidence.
He said another main goal is to identify ways to encourage the participation of the private sector, including from capital market intermediaries, investors and listed companies.
The authority noted that “the dynamic equity market is an important part of the capital formation value chain,” and the liquid market enables companies not only to access capital when developing, but also “allows asset owners and the investment community to participate in the growth of quality companies.”
“Improving the attractiveness of Singapore’s equity market will therefore enhance Singapore’s status as a vibrant corporate and financial hub,” MAS said, adding that it would also “(complement) Singapore’s innovation and startup ecosystem, the private market, as well as the asset and wealth management sectors.” .”
Despite the Straits Times Index rising in three of the last four years including 2024, Singapore’s stock market has long been plagued by thin trading volumes and more delistings than listings. This has led observers to describe the exchange as “boring,” “uninteresting” and even once in 2021, as a “zombie” exchange.
The turnover rate on SGX, a measure of market liquidity, is at 36% for all of 2023, compared to 57.35% on the Hong Kong Stock Exchange in the same period, and 103.6% on the Japanese Stock Exchange.
Analysts who previously spoke to CNBC outlined ways to revive interest in SGX, including taking lessons from “value programs” in Japan and South Korea.
The review group announced on Friday will be chaired by Chee Hong Tat, Singapore’s second finance minister, and will also include members such as Koh Boon Hwee, the current SGX chairman.
