A sign of the Monetary Authority of Singapore (MAS) hangs outside the central bank’s headquarters in Singapore.
Sam Kang Li | Bloomberg | Getty Images
Reserve Bank of Singapore establish a task force to strengthen the city’s stock market.
The Monetary Authority of Singapore announced that the review team will assess measures to “improve the vitality” of Singapore’s stock market.
MAS said on Friday that the council will focus on addressing market challenges, promoting listings and facilitating market recovery, as well as strengthening regulations to promote market growth and bolster investor confidence.
Another key objective, the report said, is to identify ways to encourage private sector participation, including from capital market intermediaries, investors and listed companies.
The agency noted that “a vibrant stock market is a critical part of the capital formation value chain” and that a liquid market not only allows companies to access capital as they expand but also “allows asset owners and the investing public to participate in the growth of quality companies.”
“Therefore, improving the attractiveness of the Singapore stock market can enhance Singapore’s position as a dynamic business and financial centre,” MAS said, adding that this would also “[complement] Singapore’s innovation and startup ecosystem, private markets, and asset and wealth management sectors.”
In spite of Straits Times Index Having risen in three of the past four years including 2024, Singapore’s stock market has long been plagued by thin trading volumes and More delistings than listings. This led observers to describe the exchange as “tasteless” “Not interesting” and even once in 2021, a zombie trading floor.
Circulation speed at SGX, a measure of market liquidity, stood at 36% for the whole of 2023, compared with 57.35% at the Hong Kong Stock Exchange over the same period and 103.6% at the Japan Stock Exchange.
Analysts who previously spoke to CNBC outlined ways to revive interest in SGX, including Lessons learned from “value enhancement programs” in Japan and South Korea.
The review group announced on Friday will be chaired by by Chee Hong Tat, Singapore’s second finance minister, and also includes members such as Koh Boon Hwee, the current chairman of SGX.
SGX said it welcomed the announcement and pledged to work closely with the review team.
SGX RegCo, the exchange’s regulatory arm, will also aim to “enhance accountability, transparency and market discipline”.
“Only an ecosystem-wide approach can lead to transformative actions that create new momentum for improved liquidity and listings on the Singapore stock exchange,” SGX said in a statement to CNBC.
