Call for views on why retail investors shun S'pore stocks

Survey aims to ascertain their needs and challenges to revitalise trading on SGX

- Kang Wan Chern

Work is under way to identify the needs and challenges retail investors face when investing in the local stock market, as part of a broader effort to revitalise trading on the Singapore Exchange (SGX).

The Securities Investors Association (Singapore), or Sias, and financial insights platform Beansprout on Nov 21 released a survey targeting retail investors.

The survey questions delve into why respondents are not investing in Singapore stocks and what would encourage them to do so.

The survey was sent to Sias' and Beansprout's subscriber base and is available to the public on Beansprout's website. It closes on Dec 5.

It aims to engage as many retail investors as possible and encourage them to share their experiences and preferences when investing in the local stock market, Beansprout chief executive Gerald Wong told The Straits Times.

He noted that while interest in the local market does exist, this is mostly from investors looking for dividend stocks. This group of investors tends to buy high-yielding stocks and hold them for the long term, so trading is minimal.

"The question is how to broaden this pool beyond dividend investors to include a more diverse investor base," he said.

"Through the survey, we can find out where the gaps in investor confidence lie, and whether we can help by contributing more content.

"The more input we get, the more it informs what we can do to help retail investors gain more confidence when investing in the stock market."

Insights from the survey will also contribute to work being done by a review committee set up by the Monetary Authority of Singapore (MAS) in August to revitalise the Singapore equities market.