Singapore sets course for ‘bold changes’ to reinvigorate flagging stock market
The Singapore government is reviewing regulations, cutting listing costs, and boosting liquidity to attract new listings and increase trading activity
Singapore is prepared to make “bold changes” to regulatory structures in an attempt to revive its languishing stock market, according to its Second Minister for Finance.
Chee Hong Tat, who is chairing a task force looking at ways to strengthen the equities market, said the group aims to remove outdated rules, encourage a pipeline of quality listings, and boost liquidity. Measures – which may include cutting listing costs and expanding the pool of equity derivatives – will be implemented in phases before the end of a 12-month review period, he said.
“It is not an easy task to revitalise our equities market, given the global headwinds faced by other exchanges and the increasing competition in this space,” Chee said at an event in Singapore on Monday. “But we are prepared to make changes and try new ideas. Because if we don’t try, our chances of success is zero.”
The latest steps came after growing calls from industry players to rejuvenate the local equities market, which has been plagued by lagging performance, shrinking market capitalisation and sluggish trading volumes. The task force includes representatives from the central bank, state investment firm Temasek Holdings Pte., Singapore Exchange Ltd. and other industry stakeholders.
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One area being explored is to streamline the prospectus disclosure requirements for issuers of initial public offerings, including secondary listings, Chee said. The Monetary Authority of Singapore will also look at removing some of the checks that are required for all retail customers.