Source of article: The Straits Times

My post on LinkedIn can be seen here.

In summary:

The Financial Times (FT) recently reported that the Singapore Venture & Private Capital Association has submitted a document to the Singapore Exchange setting out proposals to revitalise the Singapore stock market. FT reported that the proposals are also being considered by the Singapore Economic Development Board, the Monetary Authority of Singapore and the Ministry of Trade and Industry.

Minister of State Alvin Tan announced in Parliament that the Government will not adopt a prescriptive approach to compel companies to list on the local bourse in exchange for government support. Deputy Prime Minister Lawrence Wong also pointed out in Parliament that Singapore has to be realistic with global trends such as high interest rates and companies gravitating to deeper and more liquid exchanges, which are challenges that will remain for the Singapore equities market.

I fully agree with the Singapore Government’s position. Adopting a prescriptive approach will only encourage promising high-growth companies to seek private equity funding elsewhere.

To blaze a trail in the sea of global challenges besetting the equities market, it is paramount that the authorities fix the fundamentals that have caused and continue to perpetuate the perception problem that the local bourse has poor trading liquidity and low valuations. The lack of good research capability and coverage is one of the fundamentals. The other oft-cited reason is the perception that the market regulator is not sufficiently robust in its enforcement actions against companies with poor corporate governance.

I shared some of my views with the Singapore Straits Times Deputy Business Editor, Ms Kang Wan Chern, in the enclosed report published on 9 May 2024.

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