Introduction
On 2 August, the Monetary Authority of Singapore (MAS) announced that a Review Group had been formed to recommend measures to strengthen equities market development in Singapore.
The Review Group comprises private sector leaders with experience in business and capital markets as well as public sector representatives with responsibilities for enterprise development and financial policy. It will be chaired by Mr Chee Hong Tat – Minister for Transport, Second Minister for Finance, and Board member of the MAS. Mr Chee will be appointed Deputy Chairman of the MAS Board of Directors from 23 August 2024 to 31 May 2027.
Key areas of review
The Review Group will assess the current state of the equities market and examine measures to address identified challenges, drawing in perspectives from an array of market participants. It will cover the following areas:
- Propose measures to promote the development of companies listed on the Singapore Exchange by supporting and encouraging them to build capabilities and expand internationally.
- Review the key elements of Singapore’s regulatory approach to support an enabling ecosystem, including the listing regime.
- Recommend measures to attract primary and secondary listings to Singapore.
- Recommend targeted measures to facilitate product offerings and improve liquidity in Singapore’s equity market to broaden the pool of potential initial public offerings.
- Propose outreach and communication strategies to help enhance the attractiveness of Singapore’s equity market, promoting it to issuers and investors.
Advisory workstreams
The Review Group will be supported by two advisory workstreams:
- Enterprise and Markets workstream – to focus on studying and recommending market-supportive measures, including identifying and addressing key market challenges and opportunities, and developing initiatives that can kickstart listings, enhance liquidity and revitalise the market.
- Regulatory workstream – to focus on regulatory issues including examining the enhancement of Singapore’s regulatory regime to support sustainable market growth, while safeguarding investor confidence.
Through the two advisory workstreams, the review process will involve stakeholders with expertise and experience in diverse capital market fields, including corporate finance, investment banking, asset management, legal services and corporate governance. The Review Group will consider initiatives to improve the vibrancy of Singapore’s equities market and study ways to galvanise greater private sector participation, and recommend a set of measures to strengthen the Singapore equities market within 12 months.
Conclusion
A vibrant equities market is a crucial component of the capital formation value chain, complementing Singapore’s expanding private equity and venture capital ecosystem. The formation of the Review Group will build on existing efforts to position Singapore’s equities market for growth.
Reed Smith LLP is licensed to operate as a foreign law practice in Singapore under the name and style Reed Smith Pte Ltd (hereafter collectively, "Reed Smith"). Where advice on Singapore law is required, we will refer the matter to and work with Reed Smith's Formal Law Alliance partner in Singapore, Resource Law LLC, where necessary.
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