The Singapore Exchange (SGX) is the major driving force behind Singapore's thriving economy.
Its primary focus is to find more ways to attract foreign investment and ensure equitable growth for the economy ("Singapore Exchange back in hunt for overseas buys"; last Saturday).
At this moment, many people are rather wary of enterprise and investment, owing to the major risks involved. This is a precarious position that may cripple SGX.
Acquisitions in Europe may alleviate this pressure. This could be why the SGX is keen to buy Baltic Exchange, headquartered in London ("SGX submits non-binding bid for Baltic Exchange"; last Saturday).
But, to do this, it is necessary to diversify existing businesses and encourage start-ups to grow.
Singapore is on the right track, with amplified capital ventures and grants to sunrise industries and other firms. Capitalisation and reinvesting profits in new firms will also aid the financial boom.
Bolstering the position of local firms will certainly stabilise the workings of SGX to a great extent, which is in the best interest of Singapore's economy.
Shivani Ekkanath (Ms)