Three ideas to better position the Singapore equities market for growth

Singapore will focus on attracting more listings, enhancing investor participation, and improving the regulatory framework.

The Monetary Authority of Singapore (MAS) has proposed plans to boost Singapore’s equities markets, Transport Minister and Second Finance Minister Chee Hong Tat said during the Securities Investors Association Singapore (SIAS) 25th Anniversary Corporate Governance Conference 2024 

First, MAS will focus on encouraging a pipeline of quality listings. The MAS Review Group will focus on enhancing Singapore’s value proposition by providing companies with a strong equities market to raise capital for their growth and expansion.

“We will look at the incentives to encourage listing and reduce the costs of listing to lower entry barriers,” Chee said.

Second, MAS will work on enhancing investor participation and broadening market liquidity. To achieve this, industry players have suggested incentivising market makers to facilitate price discovery, broadening stock indices, and expanding the pool of equity market derivatives.

“We will study these ideas and others, with the aim of boosting market liquidity in Singapore,” Chee said.

Lastly, Singapore will reevaluate its regulatory structures and approach. The Review Group will look at Singapore’s regulatory regime and, where necessary, “prune” regulations that may no longer be necessary or pose a disproportionate regulatory burden.

With this strategy, Chee encourages the industry and investors to do their due diligence checks and exercise caution and judgment based on their risk appetites and investment preferences.

“It will not be a one-size-fits-all approach, and one has to go in with open eyes and be mentally prepared for negative outcomes, which can happen with any investment,” Chee said.