New moves can help to draw more listings, raise interest in Singapore stock market: Observers

A slew of measures by the Monetary Authority of Singapore (MAS) to reform and strengthen the local stock market can help to draw more listings and raise investor interest, market watchers said.

- Sue-Ann Tan Business Correspondent and Timothy Goh

They were responding to news on Feb 21 that MAS will launch a $5 billion programme through which it will partner with selected fund managers to invest in Singapore stocks, while streamlining regulations to help facilitate listings, among other measures.

These measures were part of recommendations by a review group set up by MAS in August 2024 to revive the Singapore stock market.

Mr Shane Chesson, vice-chairman of the Singapore Venture and Private Capital Association, said that the initiatives can change perceptions and help the Singapore Exchange (SGX) attract good companies.

These include companies that are ready to list, but are not ready or not interested in bigger exchanges in the United States. Hence, SGX can be a "great destination" for them.

"If they all think that SGX is interesting to pursue, you'll have a cohort," said Mr Chesson, who is also the founding partner of Openspace, a venture capital and growth stage fund manager.

He noted that a cohort of five to 10 companies listing within a similar timeframe can showcase the different sectors and opportunities that Singapore's stock market offers.

"That would help to create a massive change of perception. And as long as they list well, as long as the investors at IPO actually make money, then the whole thing becomes self-reinforcing," he said.