GOVERNMENT MEASURES
The Singaporean government has taken actions to increase the appeal of the regional stock market.
Two money – especially the S$ 1.5 billion Anchor Fund@65 and S$ 500 million EDBI Growth Investor Fund - , were established in 2022 to help high-growth firms to raise capital through pubic listings around.
Fund managers assist companies in advising them on the SGX listing requirements as well as facilitating meetings with investment banks and market makers, according to a Ministry of Trade and Industry ( MTI ) spokesperson.
According to Mr. Chee, these funds have so far been invested in nine businesses, according to a statement released last week in Parliament.
When asked if this number meets any initial goals and whether the funds have been successful in revitalizing the local stock market, MTI would only respond that the last two years have been “more challenging for equity markets globally” with a decline in IPO activities as a result of the high interest rate environment.
According to the spokesperson, the region’s equity markets have experienced similar repercussions in Singapore and the region.
CNA inquired further about the nine businesses that received support, as well as whether additional investments are planned. MTI did not respond.
In addition, there are plans to cover SGX-listed companies ‘ research costs and help with listing costs.  ,
The Monetary Authority of Singapore ( MAS ) offers grant amounts up to S$ 2 million that help offset listing-related expenses as part of the Grant for Equity Market Singapore ( GEM) scheme, which was launched in 2019.
As of May, this grant has supported a total of 46 listings from sectors ranging from new technology, media, healthcare to information technology, an MAS spokesperson said.
Ten of these included mainboard listings like Digital Core REIT and Nanofilm Technologies. The remaining 36, including newly listed SAM Holdings, are listed on the Catalist board.
A research development grant, which is also funded by GEMS, has supported more than 10 research institutions and has hired 38 research analysts as of the end of 2023.
Over 900 research reports covering more than 130 SGX-listed companies have been produced by these research firms, with information provided by these firms providing insights for retail investors and aiding in better decision-making, according to MAS.
The central bank’s spokesperson told CNA that “one of the factors that potential IPO aspirants take into account when considering a listing on our equities market is the GEMS grant funding.”
“MAS will continue to work with industry stakeholders on this goal and review new ideas and proposals to improve our equities market and support business growth,” according to the statement.
On its part, SGX introduced new rules in 2021 to permit the listing of special purpose acquisition companies, or SPACs, on the mainboard and more recently, a Thailand-Singapore Depository Receipt was launched to broaden access to capital and markets.
It also , started a market maker and liquidity provider programme in 2014 to boost trading volumes. The market operator declined to reveal specifics of this programme, citing confidentiality.
Additionally, SGX declined to comment on other inquiries made by CNA for this article, such as whether it is reviewing its current initiatives to improve performance.