Boost market with public money or implement ‘value-up’ programme? Maybe just do both

SOME market watchers might have been disappointed that Minister for Trade and Industry Gan Kim Yong was rather guarded in his remarks earlier this month about the hotly debated topic of using public sector money to shore up the local stock market.

“While there have been suggestions to channel sovereign monies into our equities market, it is not practical to rely on sovereign monies alone to sustain these funds and to support the equity market,” Gan said, during a speech at an event marking the silver jubilee of the Singapore Exchange (SGX).

“Instead, any use of public funding has to catalyse commercial capital for trading interest in our equities market to be sustained over the long term,” he added.