NEW measures to allow listed companies to raise fresh funds from their own shareholders more quickly are necessary to help these businesses stay viable, deputy chairman of Monetary Authority of Singapore Lim Hng Kiang said.

The mreasures were implemented by the Singapore Exchange (SGX) to expedite the rights issue process.

The measures, which kicked in on Jan 13, aim to cut by up to half the time taken by companies launching rights issues.

They were introduced in response to market feedback after consulting the MAS 'to facilitate additional equity-fund-raising by listed companies' in light of the current global environment of reduced credit availability, said Mr Lim, who is also Trade and Industry Minister.

'This is necessary to help listed companies stay viable amid the present crisis, preserve jobs and prevent further worsening of the economy,' he said.

In return, companies are required to be more proactive and have greater accountability to shareholders, such as providing adequate disclosure to the market on the reason for the rights issue and updates on the use of proceeds, as and when funds are meterially disbursed, said Mr Lim.