Market lifts as SGX reforms show results; new team tasked to push changes through
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The average daily turnover on the SGX in the third quarter of 2025 climbed 16 per cent over the same period the year before, to $1.53 billion.
ST PHOTO: KUA CHEE SIONG
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SINGAPORE - Singapore’s stock market has strengthened in recent months, as measures rolled out by a review group tasked with revitalising the bourse began showing results.
Set up by the Monetary Authority of Singapore (MAS) in 2024
MAS deputy chairman Chee Hong Tat said: “There has been some encouraging development since we started the review group in August last year. Our equities market overall, I think, has performed well.
“We have seen increased trading activities supported by both institutional and also retail participation, underpinned by increased activity in small and mid-cap stocks.”
The average daily turnover on the Singapore Exchange (SGX) in the third quarter of 2025 climbed 16 per cent over the same period the year before, to $1.53 billion. This is the highest level since the first quarter of 2021.
Listing activity has accelerated as well, with initial public offerings (IPOs) raising over $2 billion since the start of 2025.
Still, more work remains to be done to fully implement all of the review group’s measures and continue efforts to raise the market’s attractiveness while maintaining momentum, MAS said.
To this end, MAS on Nov 19 set up a new Equity Market Implementation Committee, co-chaired by MAS managing director Chia Der Jiun and SGX chief executive Loh Boon Chye, to oversee the implementation of the review group’s measures.
The new committee will coordinate market promotion and investor outreach, and recommend further enhancements as market conditions evolve. More details will be announced in the first quarter of 2026.
Mr Chee said: “Building a strong and vibrant equities market is a journey that will continue over the medium term.
“We know that markets are cyclical, and there will be some ups and downs, but we must continue to build on the momentum that we have achieved so far to further strengthen our ecosystem competitiveness.
“We will remain focused on effective and timely implementation to establish our markets on a more competitive and attractive footing.”
Some of the key measures announced in 2025 include the $5 billion Equity Market Development Programme
A total of $3.95 billion has been placed across nine asset managers as of November, with the next phase to be announced in the second quarter of 2026.
An SGX-Nasdaq dual listing bridge
SGX’s Mr Loh said the exchange will be engaging companies that show interest in the dual listing bridge.
These could include growth companies in the technology space that have a business model and strong links in Asia, and which might benefit from a listing on the SGX as well as a dual listing on Nasdaq.
Enhancements were also made to the GEMS Research Development Grant to strengthen research into Singapore equities.
After enhancements to the grant were made in July, eight additional firms joined the research development scheme, increasing the total number of participating firms from 14 to 22.
These participants comprise a diverse range of firms, including securities houses, investment banks and fund managers, as well as digital investment platforms. MAS expects more participants to come on board in the coming months.
It added that there has been an uptick in research coverage on SGX-listed companies. Before the enhancements to the GEMS scheme, an average of 39 public market research reports were published and supported under the scheme every month in 2025.
But in the three months after the enhancements were announced, the number has increased to an average of 50 reports each month, MAS said.
On the regulatory side, MAS and SGX announced measures to make it easier for companies to list, such as by consolidating listing functions under SGX RegCo, the regulatory arm of SGX. A more targeted approach to post-listing queries was also announced.
Other measures, such as removing the SGX financial watchlist which kept tabs on companies that do not meet certain financial metrics, were also implemented.
In addition, new moves to shorten and facilitate the listing process are being reviewed, with MAS intending to allow issuers to engage potential investors earlier in the IPO process, as this will maximise the chances of a successful IPO.
MAS and SGX RegCo have also conducted a review of SGX RegCo’s governance frameworks.
“Going forward, as the front-line market regulator and single regulator for listings admissions, SGX RegCo’s core mandate will continue to be to foster a trusted and well-functioning market,” MAS said.
MAS added that it has also reviewed SGX RegCo’s structural and operational needs, and will work with it to ensure that it has enough resources for its expanded regulatory responsibilities.
Tax rebates were announced earlier in 2025 for new corporate and fund manager listings in Singapore.
Experts said much progress has been made but there is more to come, especially on the implementation of the measures.
Review group member Neil Parekh, who is also deputy chairman of the Global Finance and Technology Network, said the progress has exceeded expectations.
“I think it’s been better than what I expected, but there have been some tailwinds too, so it’s hard to segregate how much (of the progress) has been through the tailwinds that the global markets have had, against the contribution of the new initiatives,” he said.
“But I think this is not an overnight journey. We have to see it over the next couple of years after the full $5 billion is in the market. The most important part is not the $5 billion itself, but how much that $5 billion attracts in terms of additional capital.”
Professor Lawrence Loh, director of the NUS Business School Centre for Governance and Sustainability, said that it is about time to review the Catalist board.
“The fundamental question is to clarify the purpose of Catalist – is it a board for growth companies, or is it essentially a board with easier listing requirements?” he said.
“It can encompass both purposes but it should not be just a board where entry is less stringent as this may affect the overall quality of the exchange.”
Looking ahead, Mr Chee said the global environment remains uncertain, but through the review group exercise, Singapore wants to be able to enhance the competitiveness of its overall ecosystem.
He added that consultation and collaboration between the Government and industry partners should continue going forward.
“It will enable us, especially in this more turbulent, uncertain environment, to continue to find new growth areas for Singapore, for our financial services industry,” he said.
“But we must, while we’re doing this, also remind ourselves that we’ve got to be prepared to take some calculated risks... We want to increase our chances of being able to implement transformative change.”
