Dearth of IPOs, not delistings, lies at the heart of market's woes

CRITICS of the Singapore Exchange (SGX) are shaking the wrong tree when they point to the current wave of delistings as a sign of the market's problems.

Delistings are par for the course on a healthy bourse. The real issue facing the Singapore equity market is a shortage of new listings. While some patience is rightfully needed on that front given the current economic cycle and certain legacy circumstances, SGX and the Singapore government can and should do a better job of attracting initial public offerings (IPOs).

A number of high-profile privatisations over the past year, such as massage chair maker OSIM International's buyout by founder Ron Sim, have raised concerns about the ability of the SGX to retain quality names. But those concerns are overblown.