THE Small and Middle Capitalisation Companies Association (SMCCA), a grouping of small and mid-capitalisation companies listed on the Singapore Exchange (SGX), announced its official launch on Wednesday.
In addition to broadening its membership base, SMCCA said it wants to play a role in improving the corporate governance practices of listed companies. To that end it intends to share best practices among its members and actively engage overseas exchanges, listed companies, and market practitioners.
"We see a gap in terms of a grouping for small and mid-caps in Singapore. There is currently no representative association or voice despite the fact that all of us in the industry want a fair, consistent and vibrant capital market in Singapore. SMCCA thus intends to speak up on behalf of our members, but also with the broader Singapore market and the economy in mind," said president Tan Choon Wee.
Activities will be funded by its initial pioneering membership of 22 SGX listed companies.
To kick off the launch event, SMCCA published two White Papers: "Market Volume Study for Singapore" and "Market Regulation Regime".
Small and mid-capitalisation companies are defined by the association as those having a market capitalisation of less than S$1.5 billion. Of the over 700 listed entities on the SGX today, there are 550 listed companies. And, of these 550 listed companies, nearly 500 have a market capitalisation of S$1.5 billion and below.