MAS-led measures to revive SGX a good start, but rebuilding confidence key to sustaining momentum
Recent steps announced by the Monetary Authority of Singapore (MAS) equities market review group to revitalise the stock market have been promising, with trading volume increasing by 56% from January to February.
This set of measures include a $5 billion injection into Singapore's stock market coupled with other tax incentives aimed at boosting institutional investments and attracting new listings.
However, sustainable market growth doesn't stop there — it also hinges on restoring retail investor trust and confidence.
Shedding light on the outcome of the first set of measures by the MAS equities review group, our Managing Partner & Head of Audit & Assurance APAC, Rick Chan shared, "Corporate governance is a critical factor in restoring confidence. Strong governance ensures transparency, protects shareholder rights and builds market confidence."
This works hand in hand with the disclosure-based regime under the SGX's listing framework where the exchange looks to streamline listing requirements, reduce qualitative admission criteria, and simplify prospectus disclosures to attract more companies.
"A disclosure-based regime can increase listings by allowing investors to make informed decisions based on risk disclosures. However, it also raises concerns about investor protection, particularly when fraudulent disclosures occur," he added.
Read the full article on The Straits Times.
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