The Monetary Authority of Singapore (MAS) logo hangs outside the headquarters of the Central Bank of Singapore.
Sam Kang Lee | Bloomberg | Getty Images
central bank of singapore A working group was set up to boost the city-state’s stock market.
The Monetary Authority of Singapore announced that a review panel will evaluate measures to “increase the vitality of Singapore’s stock market.”
The HKMA said on Friday that the group will focus on solving market challenges, facilitating listings, promoting market revitalization, and strengthening supervision to promote market growth and enhance investor confidence.
Another key objective is to find ways to encourage private sector participation, including from capital market intermediaries, investors and listed companies, the report said.
The agency noted that “vibrant stock markets are an important component of the capital formation value chain” and that liquid markets not only enable companies to access capital as they expand but also “allow asset owners and the investing public to participate in the growth of high-quality businesses.”
“As such, improving the attractiveness of Singapore’s stock market can enhance Singapore’s position as a vibrant corporate and financial centre,” the MAS said, adding that it would also “(complement) Singapore’s innovation and start-up ecosystem, private sector markets and asset and wealth management areas.
although straits times index It has risen in three of the past four years, including 2024, but Singapore’s stock market has long been hampered by sluggish trading volumes and The number of delistings exceeds the number of listings. This led observers to describe the exchange as “boring,” “boring“Even once in 2021, “Zombie” exchanges.
Turnover speed SGX’s liquidity, which measures market liquidity, was 36% for the whole of 2023, compared with 57.35% for the Hong Kong Exchange and 103.6% for the Japan Exchange during the same period.
Analysts who have previously spoken to CNBC have outlined ways to revive interest in SGX, including Learn from the “value enhancement plans” of Japan and South Korea.
The review panel announced on Friday will be chaired by Led by Singapore’s Second Finance Minister Chee Fong Tat, members also include the current chairman of SGX, Koh Boon Hui, among others.
SGX said it welcomed the announcement and pledged to work closely with the review panel.
SGX RegCo, the regulator of SGX, will also work to “enhance accountability, transparency and market discipline”.
“Only a whole-ecosystem approach can bring about transformative actions that will provide new impetus for improving liquidity and listings in the Singapore stock market,” SGX said in a statement to CNBC.
