Changes Needed to Draw Firms to List on Local Bourse: DPM Gan

Review of Regulatory Framework to Avoid Unnecessary Friction Part of Must-Do List

- Tay Hong Yi

The Singapore Exchange (SGX) must make regulations less of a burden for listed firms and those pursuing a listing, while better protecting investors.

Singapore must strengthen the larger ecosystem to build a stronger pipeline of quality listings, catalyse investor interest and sustain liquidity, which means reviewing the regulatory framework to ensure unnecessary friction is avoided.

This will empower good companies to list, and enable consumers to make informed investment decisions.

The must-do list was outlined by Deputy Prime Minister Gan Kim Yong, who noted on Jan 2 that while the local bourse has had a stellar year, with the best annual gains since 2017, it attracted only a handful of initial public offerings in 2024.

DPM Gan, who was speaking at an event marking the first day of trading in 2025 and the 25th anniversary of the SGX, also noted the need to better define the profile of companies that the exchange ought to attract.

"With exchanges and equities trading becoming a lot more cross-border, it is not surprising that companies are enticed to list on foreign venues where liquidity is concentrated," he said.