SGX eyeing depository receipts for more markets after offerings in Indonesia

Vietnam could be next, following launch of such offerings linked to 3 Indonesian firms

- Chor Khieng Yuit Senior Business Correspondent

Retail investors in Singapore can look forward to trading stocks in more overseas markets in the local currency as the Singapore Exchange (SGX) expands its offerings to simplify access to them.

Next up could be Vietnam in 2026, following the launch on Oct 16 of Singapore depository receipts (SDRs) linked to three Indonesian blue-chip companies.

SGX is in talks for the Vietnam leg of SDR offerings, said its head of securities trading Serene Cai.

Indonesia is the second Asean market to have SDRs after Thailand.

Ms Cai said that besides Vietnam, “there has been market interest in SDRs on developed markets like the United States and Australia”.

SDRs, which are similar to American depository receipts in the US, provide a way for Singapore investors to invest in the stocks of foreign companies through the SGX.

There are 26 SDRs on the exchange, comprising 10 Thai SDRs, 13 Hong Kong SDRs and the three new Indonesian SDRs.

The exchange started with Thai SDRs in May 2023 and Hong Kong SDRs in October 2024. Like the Thai and Hong Kong SDRs, the Indonesian ones are issued by Phillip Securities.

The three underlying blue-chip companies – Bank Central Asia, telco Telkom Indonesia, and food and beverage manufacturer Indofood – are part of an index that tracks the performance of the 30 largest and most liquid companies in Indonesia.