Measures needed to ensure a vibrant equity market

THE recent announcement by the Monetary Authority of Singapore (MAS) of the Grant for Equity Market Singapore (GEMS) and the ongoing financial restructuring by several listed corporates have reignited a debate about the role of equity markets in Singapore's development as a leading financial centre, as well as related issues of corporate governance and minority shareholder protection.

The prognosis for Singapore's equity market appears worrying compared to regional and global exchanges. In the last five years, delistings have exceeded listings in the market. There were 742 companies listed on the Singapore stock exchange as at January 2019, down from 782 in 2010. Average daily turnover has fallen to S$1.26 billion in 2018 from around S$1.5 billion to S$1.6 billion in 2010 and 2011.

While delisting from public equity markets is a global trend as private markets have grown with the rise of private equity, real estate and private debt funds, Singapore stands out also in its lower capital raised through initial public offerings (IPOs).