THE Monetary Authority of Singapore (MAS) has set up a review group to recommend measures to improve equities market development in Singapore, it said on Friday (Aug 2).
The review group will be chaired by Second Minister for Finance and MAS board member Chee Hong Tat, and it will include private-sector stakeholders and public-sector representatives.
MAS said the group will build on existing initiatives introduced by the government to support enterprise financing and enhance local equities markets.
These initiatives included funds to support initial public offerings (IPOs) of high-growth companies, introducing corporate structures and share classes to facilitate such listings, as well as measures to improve research coverage.
It noted that the group will come up with measures to support companies listed on the Singapore Exchange (SGX) and encourage them to expand globally.
The group will also review regulatory frameworks such as the listing regime, and recommend measures to attract primary and secondary listings to Singapore, said MAS.
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It will propose measures to facilitate product offerings and improve liquidity in Singapore’s equity market to increase the pool of potential IPOs.
Lastly, the group will formulate strategies to make Singapore’s equity market more attractive to issuers and investors.
Chee said it will also assess how effective existing measures to improve the equities market have been.
Such measures include efforts to tie up with other overseas exchanges, as well as funds that have been put in place to develop local companies, with a view to listing them on the SGX.
When asked why the review group has been formed now, Chee said the government has spoken to different stakeholders over the past few months and observed that there is a need to do something to improve the local equities market.
“Because there are different ideas, different views, we thought the most effective way for us to move forward, and to be able to tap on the views of different groups of stakeholders and experts, is to form this review group,” he said.
He added that while there will be differences in opinion, the group will decide collectively on the best set of measures that are “practical and actionable” after hearing different views and consulting widely.
The review process will involve people across various fields, such as corporate finance and investment banking. The group will recommend a set of measures and complete its report within 12 months.
“A dynamic equities market is an important part of the capital formation value chain, alongside Singapore’s growing private equity and venture capital ecosystem,” said the authority.
“A deep and liquid public equities market enables companies to access capital as they expand regionally and globally.”
Different workstreams
MAS said the group will be supported by two workstreams: enterprise and markets, as well as regulatory.
The enterprise and markets workstream will address market challenges and develop initiatives encouraging companies to list. It will be led by Lee Chuan Teck, chairman of EnterpriseSG.
Meanwhile, the regulatory workstream will aid in improving regulations to support market growth and boost investor confidence. It will be led by Chia Der Jiun, managing director of MAS.
Other members of the review group are:
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Dilhan Pillay, chief executive of Temasek
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Euleen Goh, chairman of Singapore Institute of Management
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Koh Boon Hwee, chairman of SGX
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Lai Chung Han, permanent secretary (development) of Ministry of Finance
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Lim Ming Yan, chairman of Singapore Business Federation
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Neil Parekh, partner and head of Asia, Australia and New Zealand at Tikehau Capital
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Png Cheong Boon, chairman of Singapore Economic Development Board
