Singapore will introduce a fresh round of stock market incentives next month aimed at helping listed firms boost shareholder value and improve investor engagement, said Deputy Chairman of the Monetary Authority of Singapore Chee Hong Tat.
Speaking at an event organised by DBS Group Holdings Ltd., Chee said the measures would include government grants and follow earlier efforts to encourage companies to deliver stronger returns to shareholders.
Authorities have already rolled out a “value unlock” package in September, part of Singapore’s broader plan to align with regional initiatives in Japan, Korea and Thailand, where regulators are pressing listed firms to enhance governance and shareholder returns.
Chee noted that the government continues to explore ways to increase stock market participation, with the second batch of fund manager appointments under the S$5 billion (US$3.85 billion) Equity Market Development Programme expected later this year. “The batch will include a mix of global, regional and local managers,” said Chee, who is also the National Development Minister.
He added that the government had worked closely with the industry to find sustainable ways to strengthen market liquidity and competitiveness. “We decided not to go for quick fixes, such as asking GIC or Temasek to pump-prime the market by mandating them to invest a certain amount in local equities,” Chee said.
Singapore’s benchmark equity index is currently trading near record highs, with turnover rising and early signs of an IPO revival following these initiatives.
At the same event, DBS Chief Executive Officer Tan Su Shan urged Singapore to take bolder steps to cement its standing as a global financial hub. “Do we have it in us to take those risks while we defend our stability, defend our rule of law, defend the fact that we are a rule-based, strong, resilient country with stable government,” Tan said. “I think we can.”
Bloomberg
