Reviving listings, investor participation among priorities for new equities market review group
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The review group will recommend measures to strengthen equities market development in Singapore.
ST PHOTO: KUA CHEE SIONG
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SINGAPORE – Exploring ideas to revive listings and strengthen investor participation on the Singapore Exchange (SGX), among other priorities, will be among the key areas that a new review group
The equities market review group was set up by the Monetary Authority of Singapore (MAS), and it was announced on Aug 2 that the group will recommend measures to strengthen equities market development in Singapore.
The group is chaired by Mr Chee Hong Tat, Second Minister for Finance and MAS deputy chairman, and comprises key private sector stakeholders and public sector representatives.
The group held its inaugural meeting on Aug 19 and discussed key challenges and opportunities facing the equities market here, according to a statement from MAS.
It identified priority areas for two workstreams. The first workstream for enterprise and markets will focus on generating fresh ideas to encourage listings, increase investor participation, improve trading liquidity and facilitate fair valuation for listed equities, MAS said.
It will comprise members such as Singapore Exchange (SGX) group chief executive Loh Boon Chye, Temasek chief investment officer Rohit Sipahimalani and Economic Development Board chairman Png Cheong Boon, as well as members from banks, fund managers and other listed companies.
The second workstream is a regulatory one, which will study ideas to streamline the regulatory framework and improve the listing process. It will also look at enhancing the effectiveness of Singapore’s disclosure-based regime, and strengthen corporate governance standards and investor access and recourse.
Members include Securities Investors Association Singapore president David Gerald, Professor Lawrence Loh, director of the National University of Singapore’s Centre for Governance and Sustainability, and Singtel group chief financial officer Arthur Lang.
The review group will engage stakeholders in the coming months through industry roundtables and focus group discussions to gather feedback and ideas, MAS said.
It will also assess the actions required from government agencies and industry partners to enhance Singapore’s equities market.
The review will take up to 12 months, but the group aims to announce recommendations in phases so that measures can be implemented as soon as possible, MAS said.
Mr Chee said in a post on Facebook: “There is no silver bullet to address the challenges our equities market faces. We need a suite of actionable solutions that are effective, mutually reinforcing, and leverage our strengths as a trusted business hub and financial centre.”
He added that there will be trade-offs that the group has to decide on after gathering feedback and ideas from stakeholders.
“To achieve our objectives of enhancing Singapore’s equities market, we will need all hands on deck, as well as strong partnerships among the different stakeholder groups,” he said.
