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Mr Chee Hong Tat, Minister for Transport and Second Minister for Finance, underscored the importance of strengthening Singapore’s equity markets through innovation, technology, and enhanced governance practices at the 25th Anniversary Corporate Governance Conference 2024. He stressed the necessity of a robust financial ecosystem to support the growth of Asian companies, with a focus on fintech and innovation.
Hosted by the Securities Investors Association Singapore (SIAS), the event addressed corporate governance issues and aimed to rejuvenate Singapore’s equity market. Mr Chee praised SIAS for its 25-year commitment to investor rights and transparency, benefiting over 300,000 retail investors through its educational programmes.
As the global financial landscape evolves, he stressed the need for Singapore’s equity market to adapt, recognising the challenges posed by increasing competition and market shifts. He emphasised the importance of calculated risks and urged stakeholders to explore innovative approaches to strengthen the market.
As OpenGov Asia reported, these views are in line with Deputy Prime Minister Gan Kim Yong, who highlighted the crucial role of technological innovation in Singapore’s financial sector during his keynote speech at the IBF’s 50th Anniversary. He noted that AI, blockchain, and cloud computing enhance efficiency, customer experience, and Singapore’s status as a global financial hub, while also advancing sustainable finance for future growth and competitiveness.
Mr Chee highlighted Singapore’s position as a leading startup hub in Asia, with over 4,500 tech startups, 400 venture capital firms, and 240 incubators and accelerators fostering a vibrant innovation ecosystem. He pointed to the StartupSG initiative, which has provided critical resources and networks for entrepreneurs to access markets, talent, and capital.
To build on this success, the government’s equity market review, led by MAS, aims to attract growth companies from Singapore and the region. The focus is on encouraging mid-sized regional companies to list in Singapore, leveraging its status as a trusted financial hub, offering better brand and investor familiarity compared to larger global markets.
He also stressed the importance of creating a robust financial ecosystem that supports the growth of Asian companies, particularly in niche sectors like fintech, innovation, and sustainability. The government aims to develop incentives that lower the costs of listing and provide a conducive environment for such companies to thrive.
The review also addresses startups seeking IPOs prematurely due to current venture capital challenges. Mr Chee suggested supporting late-stage startups through the secondary private fund sector before they go public.
In line with this, the review group will examine how to enhance research coverage for targeted sectors to bridge information gaps and attract investors. Improved research visibility will not only generate investor interest but also help companies transition from being privately-held to publicly-listed.
Another priority is deepening market liquidity, which is essential for promoting efficient price discovery and attracting new listings. Mr Chee acknowledged that liquidity in Singapore’s equity market is currently concentrated in a few well-known companies.
To address this, industry stakeholders have proposed measures to incentivise broader investor participation, including expanding the pool of equity market derivatives and encouraging more market makers to facilitate price discovery.
The regulatory landscape is also under review. Mr Chee stressed the importance of “pruning” outdated regulations to reduce the compliance burden on IPO issuers while maintaining necessary safeguards. The review group aims to create a more dynamic regulatory framework that encourages innovation and growth while balancing investor protection.
Mr Chee’s address highlighted Singapore’s efforts to remain competitive in the global equity landscape through innovation, technology-driven growth, and regulatory reform. By fostering a robust ecosystem for start-ups and growth companies, Singapore aims to strengthen its position as a leading financial hub in the region.
