SGX must shore up its promise of a stepping stone for tech start-ups

THE Singapore Exchange (SGX) will have to overcome deep-seated issues of liquidity, investor appetite and issuer quality if it is to draw any positive impact from its latest tie-up with Nasdaq.

SGX and Nasdaq announced on Oct 18 that they would collaborate on allowing concurrent or sequential listings on both exchanges. Details of the pact have not been announced, but the move has been framed from the SGX perspective as part of a strategy to attract more tech companies and start-ups.

The agreement's focus on concurrent or sequential listings, and plans to offer Nasdaq's International Designation programme for Singapore-listed companies, could allow SGX to position itself as a stepping stone or fast-track channel to Nasdaq. Tech companies that might not yet be ready for Nasdaq could therefore view Singapore as an intermediate option, allowing Singapore to capture some of the Nasdaq-bound companies before they reach their end goal.