My post on LinkedIn can be seen here.
The SGD 5 billion Equity Market Development Program (EMDP) initiated by the Monetary Authority of Singapore (MAS) to revitalise the Singapore bourse is beginning to show positive results.
Encouragingly, the early signs indicate that the program is gaining traction — a welcome development for the local capital markets.
Clarity, Transparency, and Market Commitment
As the asset managers who have been or are to be selected by MAS to participate in the program come on board, it is important that they release information on:
- Their respective plans to improve liquidity in the Singapore stock market;
- Efforts to promote research that can enhance market understanding and valuations; and
- Their commitments to invest in promising local SMEs — particularly those with the potential to list on the Singapore bourse.
Such transparency will go a long way in building confidence among market participants and stakeholders.
Trust in Institutional Expertise
Beyond this, the participating asset managers should be given the latitude to execute their plans and strategies. As experienced institutional investors, they possess the expertise, sophistication, and resources needed to do what is necessary to help develop and grow the market.
We should trust their capabilities and allow them the space to operate effectively.
A Collective Effort to Lift the Market
I remain sanguine that the collective efforts of all stakeholders — including asset managers, market regulators, and with the continued support of the government — will provide the necessary fillip to boost the Singapore stock market.
The long-term growth of our equity market depends on coordination, shared responsibility, and smart execution.
Quality Over Quantity
At the end of the day, the focus should not be on the sheer number of new listings. Rather, our objective should be to:
- Attract quality issuers to the Singapore bourse,
- Create better liquidity across the board, and
- Help improve valuations for companies already listed in Singapore.
This is how we ensure the sustainable development of our capital markets.
I shared these views with Benjamin Lim and Sue-Ann Tan in the online edition of The Straits Times published this morning.
Follow me on LinkedIn or visit my profile.