Doing away with SGX watch list may benefit firms, say observers

It would let them focus on business growth without burden of public stigma, they say

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The proposed removal of the Singapore Exchange's (SGX) financial watch list could benefit companies by allowing them to focus on business growth without the burden of public stigma.

"This shift moves away from 'name and shame' and encourages a more constructive environment for corporate recovery and transformation," Mr Yap Wee Kee, partner of the capital markets group at professional services firm KPMG in Singapore, told The Business Times.

Such regulatory measures are expected to steer Singapore more decisively towards a disclosure-based regime. They form part of a broader set of recommendations aimed at revitalising the local market, which were announced by the Monetary Authority of Singapore's Equities Market Review Group in February 2025.

Established in August 2024, the review group comprises representatives from both the private and public sectors. Its objective is to enhance the competitiveness of Singapore's equities market by attracting investor interest, increasing the supply of quality listings and streamlining the regulatory process for initial public offerings.

Singapore Exchange Regulation is currently seeking feedback on changes to rules on listing admission and post-listing disclosures.

In May, it proposed provisionally suspending the half-yearly reviews used to place issuers on the watch list. During this period, companies already on the list will remain listed, regardless of whether they meet the exit criteria.