My post on LinkedIn can be seen here.
I fully support the Singapore Exchange’s (SGX) decision to remove the financial watch list and to cease the practice of public trading queries.
Being placed on the watch list often signals the end for many issuers, making it difficult to attract new investors or raise funds through placements and rights issues. This limitation prevents companies from revitalizing their businesses and, in many cases, leads them to downgrade to Catalist — reinforcing the misconception that Catalist is a “graveyard” for Mainboard companies.
Similarly, the practice of public trading queries has often been a blunt regulatory tool, causing unnecessary stress for issuers even when the queries are merely clarificatory.
Importantly, the SGX’s disclosure requirements under the Listing Rules and the Securities and Futures Act remain unchanged. Issuers and their directors are still obligated to make full, prompt, and transparent disclosures of all material information to avoid creating a false market.
Under the new approach, RegCo will continue to require public announcements of trading queries only when there is material new information that must be disclosed to the market. This shift reflects a more balanced and nuanced approach — aligning with the principles of a disclosure-based regulatory framework rather than a rigid, one-size-fits-all system.
I thank Ms. Tan Sue-Ann for featuring my views in The Straits Times on 30 October 2025.
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