MORE POWER IS REQUIRED
Speaking to industry insiders, one also has the effect that smaller businesses are burdened by the SGX’s regulatory framework, which is acknowledged to be among the best in the world. Companies with thin or dangerous margins may struggle to manage the large compliance costs, and they may finally head for the entrance. If their companies don’t show much interest in the market, that’s even more so.
What’s the alternative then?
Some market observers believe that more could be done to support an expensive bourse, despite the EMRG’s initiatives appearing to be heading in the right direction. While S$ 5 billion is a good place to start to add liquidity to the market, it is worthwhile to think about whether government-backed funds like GIC should also make investments in SGX-listed stocks.  ,
As I have previously stated in my previous sections on this area, it makes sense for the GIC to invest in local businesses if the SGX succeeds in attracting them to list here, especially when they do but on other markets like Hong Kong. Such a strategy might enhance the attractiveness of the SGX as a list target.
Additionally, it has been suggested that the liquidity-supporting restrictions on small marketing and margin trading be relaxed. This may bring up the animal spirits that are needed to ignite the market’s liquidity if it is properly regulated and restricted to “accredited traders” who have undergone some form of training or have taken the required course. The Securities Investors Association ( Singapore ), or SIAS, may implement a similar program and certification.
There are many different ways to skin a cat, but there isn’t a one remedy.
A market that is situated at the heart of one of Asia’s top economic and wealth management centers is seriously concerned about the issues of cash, delistings, and the lack of fresh IPOs. However, this is not a solvable issue. Simply put, it calls for major, actionable solutions that address the root causes.
Half-hearted and fragmented actions may not be sufficient. The EMRG’s initiatives are too few, very soon, and not detailed enough to offer a great knock solution for a very sick market, as is now the criticism. More ardor is necessary.
For more than 30 years, Ven Sreenivasan has written about financial markets, economic news, organizational news, and aviation.