“Singapore Considers Proposals to Revitalize Its Underperforming Stock Market “

SINGAPORE: Singapore is exploring strategies to reinvigorate its stock market, which has struggled to keep pace with regional counterparts. According to sources cited by the Financial Times, the Singapore Exchange (SGX) is reviewing proposals submitted by the Singapore Venture & Private Capital Association (SVCA), whose members include prominent state funds GIC and Temasek.

The SVCA’s proposals are also being reviewed by government agencies like the Economic Development Board, Ministry of Trade and Industry, and the Monetary Authority of Singapore. The discussions were prompted by a trend of Southeast Asian companies, including Carro, opting for US listings over Singapore’s market.

One key proposal is to mandate stock market participation from private capital sources flowing into Singapore, such as family offices and wealth management businesses. Other suggestions include emulating Australia and Thailand by encouraging pension and sovereign wealth funds to invest locally, marking a potential shift for funds like GIC, which have traditionally focused on international investments.

SGX recorded one of the lowest global trading volumes last year, as more companies delisted than listed. In contrast, regional markets like Indonesia and India have experienced IPO surges, creating concerns that even Singapore’s private capital could shift to faster-growing markets. Observers note that while Singapore is a leading financial center, the lack of a vibrant local stock exchange could impact its status.

Another proposal recommends fostering collaboration with Southeast Asian markets, potentially positioning Singapore as a regional exchange hub. However, industry experts caution that achieving meaningful change requires improvements in corporate governance and market disclosure practices to attract investors’ confidence.