Source of article: THE STRAITS TIMES
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The recent measures announced by the Monetary Authority of Singapore (MAS)-led equities market review committee to revitalise the local bourse have borne positive and encouraging results. The significant rise in trading activity demonstrates renewed investor interest, suggesting that the reforms are beginning to take effect. A more vibrant stock exchange benefits market participants across the board, from institutional investors to retail traders, as higher liquidity typically leads to more efficient price discovery and improved market depth. With the increased participation, the Singapore Exchange (SGX) is positioning itself as a more competitive marketplace in the global financial landscape.
The number of shares traded in February 2025 saw an impressive 56 per cent increase from January, while the total market value of all transactions rose by 42 per cent to SGD 29.6 billion. These figures indicate growing investor confidence and highlight the impact of efforts to enhance trading efficiency, such as improving market infrastructure, increasing transparency, and facilitating broader access to investment opportunities. However, sustaining this momentum requires continuous efforts to ensure that the trading environment remains attractive, particularly for long-term investors. While the influx of capital and heightened activity are promising, the sustainability of these gains will depend on strengthening investor protection and maintaining regulatory oversight.
The initiatives aimed at boosting institutional investments and attracting higher-quality securities listings must be complemented by concurrent measures to enhance retail investor trust and confidence. Retail investors play a crucial role in fostering a resilient and dynamic market, and their sustained engagement is vital for long-term stability. Ms. Kang Wan Chern, Deputy Business Editor of The Straits Times, aptly highlighted in her 26 March 2025 analysis that trust-building efforts must progress alongside MAS-led market revitalization measures. Restoring faith in the local bourse involves not only increasing transparency and governance standards but also ensuring that individual investors have access to reliable information and fair trading conditions. By addressing these concerns, Singapore can solidify its standing as a premier financial hub with a well-rounded and thriving equity market.
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