Government measures
The Singapore government has taken steps to make the domestic stock market more attractive.
Two funds were launched in 2022 to help high-growth companies raise capital through public offerings – the S$1.5 billion Anchor Fund @ 65 and the S$500 million EDBI Growth IPO Fund.
A Ministry of Trade and Industry (MTI) spokesman said the fund managers do this by advising companies on SGX listing requirements and facilitating negotiations with investment banks and market makers.
So far, the funds have invested in nine companies, Chee told Parliament last week.
When asked whether this figure achieved the target originally set and whether the fund had been effective in revitalizing the domestic stock market, MTI would only say that the past two years had been “challenger for stock markets globally” due to reduced IPO activity amid a high interest rate environment.
A spokesman said stock markets in Singapore and the region were similarly affected.
MTI did not respond to follow-up questions from CNA about details of the nine companies it backed or whether other investments were planned.
Meanwhile, there are also schemes to ease the burden of listing costs and provide funding for investigative journalism of SGX-listed companies.
As part of the Singapore Stock Market Subsidy (GEMS) scheme, launched in 2019, the Monetary Authority of Singapore (MAS) is offering subsidies of up to S$2 million to help offset listing-related costs.
As of May, the grant had supported a total of 46 listings across a range of sectors, from new technology, media, healthcare to information technology, according to a MAS spokesman.
Of these, 10 are listed on the Main Board, including Nanofilm Technologies and Digital Core REIT, while the remaining 36, including new listing SAM Holdings, are listed on the Catalyst Board.
Additionally, under GEMS, research and development grants have supported more than 10 research firms, employing 38 research analysts as of the end of 2023.
MAS said the research firms have produced more than 900 research reports covering over 130 SGX-listed companies, and the information contained therein provides insights for retail investors to help them make better decisions.
“The GEMS subsidy is one of the factors that potential IPO aspirants consider when considering listing on the stock market,” a central bank spokesman told CNA.
“MAS is open to exploring new ideas and proposals to improve the stock market and support business growth, and will continue to work with industry players towards this goal.”
Meanwhile, SGX introduced new rules in 2021 to allow mainboard listings of special purpose acquisition companies (SPACs), and more recently introduced the Thai Singapore Depository Receipt to expand capital and market access.
The company also launched a market maker and liquidity provider program in 2014 to boost trading volumes. The market operator declined to disclose details of the program, citing confidentiality.
SGX also declined to comment on other questions posed by CNA for this article, including whether it was reviewing existing efforts to improve performance.
