Singapore battles to revive struggling stock market

[The_King]

Singapore is studying proposals to shake up its struggling stock market as the gap between the financial hub’s performance and other regional exchanges widens. Singapore Exchange (SGX) is reviewing a document from the nation’s venture and private capital association, according to three people familiar with the discussions. The Singapore Venture & Private Capital Association (SVCA) includes state funds GIC and Temasek, local and global venture firms, and buyout groups including General Atlantic, Warburg Pincus and KKR. Discussions have been going on since the beginning of the year, the people added, and the SVCA’s proposals are also being considered by the government’s Economic Development Board, Monetary Authority of Singapore and the Ministry of Trade and Industry. The government did not commission the document, but it has appeared as it discusses policy changes with SGX to boost the stock market. The two are responding to the next wave of south-east Asian companies — such as Singapore-based automotive marketplace Carro — opting for the US over Singapore to list. “There has been a shift in thinking by the government that this is not just an SGX problem but important to Singapore’s national agenda. Is it possible to be a well-rounded and relevant international financial centre with an anaemic stock market? Perhaps not,” said an industry executive involved with the discussions. One person involved in the document’s creation who did not wish to be named said they had “not seen an all-government and industry approach like this since Singapore first decided it wanted to foster a tech and venture capital industry in the late 2000s”. “For the first time, they seem more willing to consider more maverick, aggressive moves such as investing pension money — which is normal elsewhere but new for Singapore.” SGX chair Koh Boon Hwee, appointed last year, has been heavily involved and more willing to hear fresh perspectives, the people said. Koh, a business veteran in the city-state, has also chaired telecoms group Singtel, the city’s biggest bank DBS and Singapore Airlines. The MAS said it “has received the proposals and is reviewing them”. SGX, the EDB and MTI declined to comment. Column chart showing that Singapore lagged regional peers for deals and funds raised in 2023 Singapore has risen as a financial centre in recent years, boosted by a crackdown by China’s President Xi Jinping on the rival business hub of Hong Kong and record amounts of private wealth and capital flowing into the island state, regarded as a haven for its stability and business-friendly, low tax market. But the government’s success in private markets has never flowed through to its stock exchange — even as more new economy and technology companies set up their headquarters in Singapore. SGX has been dogged by low volumes and questions over corporate disclosure practices.

 

 

 

Delistings frequently outnumber listings. The bourse has a high concentration of businesses in which state investor Temasek has a big block stake, as well as asset-heavy companies such as real estate investment trusts that have languished in recent years amid higher interest rates. The exchange was one of the quietest globally last year in terms of deals and funds raised, at seven and $300mn respectively, according to PwC research. Its poor performance has become starker with regional exchanges preparing for an initial public offering revival as global macroeconomic conditions improve. Column chart showing Singapore's quiet IPO market The Indonesian stock exchange was among the top five exchanges globally by total number of IPOs in 2023. India recorded its highest number of IPOs since 2017 last year at 234, an increase of 56 per cent on 2022 while private investors are shifting more capital to it in preference to China. Japanese stocks last month broke a bubble-era record while Hong Kong Exchange has appointed new leadership as the city fights to maintain its status as a major financial centre. “There is a growing fear that even some private capital could leave Singapore in favour of being closer to those faster-growing markets, especially India,” said one Singapore-based venture capital managing partner consulted by the government and SGX. Among the proposals suggested is mandating stock market participation from the record sums of private capital that have poured into the city-state in recent years, such as into family offices and other wealth management businesses. There are also more politically sensitive suggestions, such as mechanisms allowing pension and sovereign money to be invested in the stock market as seen in Australia or Thailand, the people said. While Temasek invests in local companies, GIC, which manages the government’s foreign reserves, only invests internationally. Recommended Singapore Singapore family office applicants face 18-month wait amid tighter scrutiny A couple walks along an aerial walkway of Singapore’s Garden by the Bay The government has also been closely watching other countries’ policies, such as the UK dialling up the pressure on pension schemes to help companies grow, the people said.

 

 

Like GIC, Singapore’s Central Provident Fund also has abundant capital. While retail investors can use their CPF money to invest in selected stocks, that does not move the needle in terms of volumes. There is no government policy that mandates or encourages CPF investment into equities at a broader level. Another proposal includes more collaboration with south-east Asian stock markets, including the potential for Singapore to host a regional exchange down the track and underpin any issues such as currency risk. “Singapore trumpets that it is an ‘innovation economy’ but has a retirement system that is so risk averse. Building that liquidity might start to incentivise fund managers,” another person familiar with the talks said. Others however questioned whether the latest attempt would be enough to turn around SGX’s trajectory. “Creating supply and demand is hard. They really need to be talking to market makers like local funds and asset managers and I still am not seeing that,” said one Singapore-based hedge fund executive. Previous efforts, such as tie-ups with the Nasdaq and Tel Aviv exchanges to attract secondary listings, or a Spac regime being introduced in 2021, have failed to work. “It’s nice to have ideas and to make it part of the Singapore national agenda. But fixing poor disclosure practices, or strengthening corporate governance to give investors more assurance, remain the broader issues for us,” the hedge fund executive added.

[The_King]

hahahahahahahahaha. fix opp more important

[noobmaster]

So many rubbish stocks who will buy 

[Huat Zai]

@socrates469bc you ok bo? If you need someone to talk to, we are all here to mock you ok?

 

Edited May 6 by Huat Zai

[Satki]

Socrates already chiong to TW. maybe he saw it a long time back.

 

But our buy high sell low says our SGX is very active for such a small country. Guess she is trying top  talk it up not knowing money talks only

[pigpigoink]

2 hours ago, Satki said:

Socrates already chiong to TW. maybe he saw it a long time back.

 

But our buy high sell low says our SGX is very active for such a small country. Guess she is trying top  talk it up not knowing money talks only

 

socrates ish a she? 

 

sg stocks are really zzz... rise very little but when fall, wow top speed lol

[Satki]

9 hours ago, pigpigoink said:

 

socrates ish a she? 

 

sg stocks are really zzz... rise very little but when fall, wow top speed lol

second statement is referencing our empress

[The_King]

1 minute ago, Satki said:

second statement is referencing our empress

Chey 

[Satki]

58 minutes ago, The_King said:

Chey 

 

 

9.46 am and you are reading the forum? back to work!

[socrates469bc]

14 hours ago, The_King said:

Singapore is studying proposals to shake up its struggling stock market as the gap between the financial hub’s performance and other regional exchanges widens. Singapore Exchange (SGX) is reviewing a document from the nation’s venture and private capital association, according to three people familiar with the discussions. The Singapore Venture & Private Capital Association (SVCA) includes state funds GIC and Temasek, local and global venture firms, and buyout groups including General Atlantic, Warburg Pincus and KKR. Discussions have been going on since the beginning of the year, the people added, and the SVCA’s proposals are also being considered by the government’s Economic Development Board, Monetary Authority of Singapore and the Ministry of Trade and Industry. The government did not commission the document, but it has appeared as it discusses policy changes with SGX to boost the stock market. The two are responding to the next wave of south-east Asian companies — such as Singapore-based automotive marketplace Carro — opting for the US over Singapore to list. “There has been a shift in thinking by the government that this is not just an SGX problem but important to Singapore’s national agenda. Is it possible to be a well-rounded and relevant international financial centre with an anaemic stock market? Perhaps not,” said an industry executive involved with the discussions. One person involved in the document’s creation who did not wish to be named said they had “not seen an all-government and industry approach like this since Singapore first decided it wanted to foster a tech and venture capital industry in the late 2000s”. “For the first time, they seem more willing to consider more maverick, aggressive moves such as investing pension money — which is normal elsewhere but new for Singapore.” SGX chair Koh Boon Hwee, appointed last year, has been heavily involved and more willing to hear fresh perspectives, the people said. Koh, a business veteran in the city-state, has also chaired telecoms group Singtel, the city’s biggest bank DBS and Singapore Airlines. The MAS said it “has received the proposals and is reviewing them”. SGX, the EDB and MTI declined to comment. Column chart showing that Singapore lagged regional peers for deals and funds raised in 2023 Singapore has risen as a financial centre in recent years, boosted by a crackdown by China’s President Xi Jinping on the rival business hub of Hong Kong and record amounts of private wealth and capital flowing into the island state, regarded as a haven for its stability and business-friendly, low tax market. But the government’s success in private markets has never flowed through to its stock exchange — even as more new economy and technology companies set up their headquarters in Singapore. SGX has been dogged by low volumes and questions over corporate disclosure practices.

 

 

 

Delistings frequently outnumber listings. The bourse has a high concentration of businesses in which state investor Temasek has a big block stake, as well as asset-heavy companies such as real estate investment trusts that have languished in recent years amid higher interest rates. The exchange was one of the quietest globally last year in terms of deals and funds raised, at seven and $300mn respectively, according to PwC research. Its poor performance has become starker with regional exchanges preparing for an initial public offering revival as global macroeconomic conditions improve. Column chart showing Singapore's quiet IPO market The Indonesian stock exchange was among the top five exchanges globally by total number of IPOs in 2023. India recorded its highest number of IPOs since 2017 last year at 234, an increase of 56 per cent on 2022 while private investors are shifting more capital to it in preference to China. Japanese stocks last month broke a bubble-era record while Hong Kong Exchange has appointed new leadership as the city fights to maintain its status as a major financial centre. “There is a growing fear that even some private capital could leave Singapore in favour of being closer to those faster-growing markets, especially India,” said one Singapore-based venture capital managing partner consulted by the government and SGX. Among the proposals suggested is mandating stock market participation from the record sums of private capital that have poured into the city-state in recent years, such as into family offices and other wealth management businesses. There are also more politically sensitive suggestions, such as mechanisms allowing pension and sovereign money to be invested in the stock market as seen in Australia or Thailand, the people said. While Temasek invests in local companies, GIC, which manages the government’s foreign reserves, only invests internationally. Recommended Singapore Singapore family office applicants face 18-month wait amid tighter scrutiny A couple walks along an aerial walkway of Singapore’s Garden by the Bay The government has also been closely watching other countries’ policies, such as the UK dialling up the pressure on pension schemes to help companies grow, the people said.

 

 

Like GIC, Singapore’s Central Provident Fund also has abundant capital. While retail investors can use their CPF money to invest in selected stocks, that does not move the needle in terms of volumes. There is no government policy that mandates or encourages CPF investment into equities at a broader level. Another proposal includes more collaboration with south-east Asian stock markets, including the potential for Singapore to host a regional exchange down the track and underpin any issues such as currency risk. “Singapore trumpets that it is an ‘innovation economy’ but has a retirement system that is so risk averse. Building that liquidity might start to incentivise fund managers,” another person familiar with the talks said. Others however questioned whether the latest attempt would be enough to turn around SGX’s trajectory. “Creating supply and demand is hard. They really need to be talking to market makers like local funds and asset managers and I still am not seeing that,” said one Singapore-based hedge fund executive. Previous efforts, such as tie-ups with the Nasdaq and Tel Aviv exchanges to attract secondary listings, or a Spac regime being introduced in 2021, have failed to work. “It’s nice to have ideas and to make it part of the Singapore national agenda. But fixing poor disclosure practices, or strengthening corporate governance to give investors more assurance, remain the broader issues for us,” the hedge fund executive added.

 

limpeh see how low the ratio of daily turnover vs mkt cap alrdy know sgx cannot play anymore liao

 

smlj initiatives also bo use de when the fundamental issue is lack of exciting stocks.

 

wahahahahahahahahahaha

[socrates469bc]

13 hours ago, noobmaster said:

So many rubbish stocks who will buy 

 

every exchange has rubbish stocks, issue is whether got any syndicate to fry the stocks and whether retailers r kumgong enough to follow thru

 

wahahahahahahahahahahahaha

 

 

[socrates469bc]

13 hours ago, Huat Zai said:

@socrates469bc you ok bo? If you need someone to talk to, we are all here to mock you ok?

 

 

13 hours ago, Satki said:

Socrates already chiong to TW. maybe he saw it a long time back.

 

But our buy high sell low says our SGX is very active for such a small country. Guess she is trying top  talk it up not knowing money talks only

 

11 hours ago, pigpigoink said:

 

socrates ish a she? 

 

sg stocks are really zzz... rise very little but when fall, wow top speed lol

 

the only stock limpeh still buy on sgx is ocbc

 

all the rest is really cannot buy

 

the reason limpeh invest in taiex is becos of the high number of real tech firms doing real work while sgx chase after companies like grab and foodpanda

 

wahahahahahahahahaha 

[Satki]

will Xi chiong kong them when he takes back TW?

[The_King]

3 hours ago, Satki said:

 

 

9.46 am and you are reading the forum? back to work!

Today go for course

 

Jin sian

[The_King]

3 hours ago, socrates469bc said:

 

 

 

the only stock limpeh still buy on sgx is ocbc

 

all the rest is really cannot buy

 

the reason limpeh invest in taiex is becos of the high number of real tech firms doing real work while sgx chase after companies like grab and foodpanda

 

wahahahahahahahahaha 

Mean sgx no hope liao.

 

 

[Satki]

33 minutes ago, The_King said:

Today go for course

 

Jin sian

 

 

skillsfuturee?

 

Saw the CTO course ad

[aaur4man]

sg stock can buy one meh

[The_King]

3 hours ago, Satki said:

 

 

skillsfuturee?

 

Saw the CTO course ad

Company course