Signage for the Monetary Authority of Singapore (MAS) is displayed outside the central bank’s headquarters in Singapore.
Sam Kang Li | Bloomberg | Getty Images
The Central Bank of Singapore established a task force to strengthen the city-state’s stock market.
The Monetary Authority of Singapore has announced that the research group will evaluate measures to “improve the vibrancy” of Singapore’s stock market.
MAS said on Friday that the panel will focus on addressing market challenges, promoting listings and facilitating market revitalization, as well as improving regulations to facilitate market growth and boost investor confidence.
It said another key objective will be to identify methods to encourage private sector participation, including capital market intermediaries, investors and listed companies.
The authority noted that a “dynamic stock market is an important part of the capital formation value chain,” and that a liquid market not only allows companies to access capital as they grow, but also “enables asset owners and the investing public to participate in the growth of quality companies.”
“Improving the attractiveness of Singapore’s stock market can therefore enhance Singapore’s position as a vibrant business and financial centre,” the MAS said, adding that this also “[complement] Singapore’s innovation and start-up ecosystem, private markets and asset and wealth management sectors.”
In spite of the Straits Times Index The Singapore stock market has risen in three of the past four years, including 2024, and has long been plagued by lackluster trading volumes and more deletions than mentions. This has led observers to describe the exchange as “boring,” “not exciting” and even once in 2021, a “zombie fair”..
Turnover rate on the SGX, a measure of market liquidity, was 36% for all of 2023, compared with 57.35% on the Hong Kong Exchange in the same period, and 103.6% on the Japan Exchange.
Analysts who previously spoke to CNBC outlined ways to revive interest in the SGX, including by learning lessons from “value-up programs” in Japan and South Korea.
The evaluation group announced on Friday will be chaired by Chee Hong Tat, Singapore’s second finance minister, as well as members such as Koh Boon Hwee, the current chairman of the SGX.
The SGX said it welcomed the announcement and pledged to work closely with the rating group.
SGX RegCo, the exchange’s regulatory arm, will also aim to “increase accountability, transparency and market discipline.”
“Only a whole ecosystem approach can lead to transformative actions that will provide new impetus to improving liquidity and listings in the Singapore stock market,” SGX said in a statement to CNBC.