Small, mid-cap firms team up to battle SGX's declining trading value

It's the first association of its kind.

Small and mid-cap companies listed on the Singapore Exchange today formed an association to improve the local capital market.

The Small and Middle Capitalisation Companies Association (SMCCA) has an initial membership of 22 SGX-listed companies.  Only firms with a market capitalisation of less than S$1.5 billion can be part of the SMCCA.

“We see a gap in terms of a grouping for small and mid-caps in Singapore. There is currently no representative association or voice despite the fact that all of us in the industry want a fair, consistent and vibrant capital market in Singapore,” the SMCCA said in a statement.

The association highlighted that Singapore is no longer Southeast Asia's top market in terms of trading value, having long been overtaken by Thailand and more recently by Malaysia.

"An illiquid market makes it challenging for listed companies to raise capital for growth and for their stock prices to properly reflect the value of their financial performance," the SCCA stressed.