The Monetary Authority of Singapore (MAS) announced that a Review Group has been set up to recommend measures to strengthen equities market development in Singapore.
The Review Group will be chaired by Mr Chee Hong Tat, Minister for Transport, Second Minister for Finance and Board Member of MAS, and “comprise key private sector stakeholders and public sector representatives.”
A dynamic equities market is “an important part of the capital formation value chain, alongside Singapore’s growing private equity and venture capital ecosystem.”
A deep and liquid public equities market “enables companies to access capital as they expand regionally and globally.”
It also allows asset owners and the investing public “to participate in the growth of quality companies. Improving the attractiveness of Singapore’s equities market can therefore enhance Singapore’s standing as a vibrant enterprise and financial hub.”
This in turn complements Singapore’s innovation and “start-up ecosystem, private markets, as well as asset and wealth management sectors.”
The Government has introduced various initiatives “to support enterprise financing and enhance Singapore’s equities markets.”
These include the set-up of cornerstone funds “to support initial public offerings of high-growth companies, introduction of corporate structures and share classes to facilitate such listings, and measures to improve research coverage.”
The Review Group will build “on these efforts to position Singapore’s equities market for growth.”
The Group will consider additional initiatives “to improve the vibrancy of our equities market, and study ways to galvanise greater private sector participation in this effort, including from capital market intermediaries, investors, and listed companies.”
The Review Group will be supported by two workstreams:
- The Enterprise and Markets workstream will aim to address market challenges, foster listings, and facilitate market revitalisation; and
- The Regulatory workstream will focus on enhancing the regulatory regime to facilitate market growth and foster investor confidence.
The Terms of Reference and composition of the Review Group are set out in Annex A.
Through the two workstreams, the review process “will involve stakeholders with expertise and experience in diverse fields in the capital markets, including corporate finance, investment banking, asset management, legal services, and corporate governance.”
The Review Group will recommend “a set of measures to strengthen the Singapore equities market and complete its report within 12 months.”
