SGX must overcome market's cynicism and scepticism

SINCE the start of the year, the Singapore Exchange (SGX) has embarked on a radical revamp of its business in order to improve and strengthen the marketplace. Some proposals are still at the consultation stage and will take time to come into force - for example, moves to give the exchange more disciplinary powers will require statutory approval, which could prove a lengthy process. Some will probably meet with resistance from the business community and may have to be tweaked to gain acceptance, while others may have to be totally scrapped.

Among the challenges that the exchange will encounter in the weeks and months ahead in its bid to transform the market, the biggest will probably be the need to overcome an ingrained cynicism and widespread scepticism which, sad to say, seems to have taken root in many corners of the local marketplace.

Take, for example, the proposal to require a minimum sum of 20 cents to retain a listing on the mainboard, which was presumably partly mooted to address criticism that Singapore is mainly "a penny stock market" or, to use a colloquialism, "a kuching-kurap" market.