Charting a new centre

THIS WEEK'S TOPIC: Will special purpose acquisition companies (SPACs) help to turn Singapore into a tech IPO hub?

Ong Pang Thye Managing Partner KPMG Singapore

First impressions last, and that's why SPACs can help forge that reputation of Singapore as a global technology IPO hub. High-profile SPAC sponsors and prominent technology enterprises will draw global attention to the country's viability as a technology-based equity market, reinforcing its capabilities as a technology innovation hub. Success of the first few stocks will also breed further success. Eyes will be on the pioneers - to see if listings are effective, valuations are favourable, and whether investor returns are commensurate with business performance and development, nudging other established technology companies and sponsors to opt for Singapore as their listing destination. Hence, while SPACs may not be a silver bullet, they certainly are a shot in the arm for Singapore to make its memorable pitch of being the exchange of choice, where technology companies can get the ecosystem and edge that they are looking for.

Max Loh Managing Partner, Singapore and Brunei Ernst & Young LLP

The introduction of SPACs and the various funding and support actions are significant moves to uplift the vibrancy of the local capital market. Aimed more at the new economy, high-growth and technology enterprises, the initiatives are aligned with and serve to cement Singapore's position as an economic and financial services hub. Anchoring the listing of more growth companies on SGX is imperative to that ambition. The initiatives will undoubtedly ''blow wind'' into the sails of our public equity market, but it will take the entire ecosystem to step forward and drive success. These include the sailing infrastructure and conditions, the quality and attractiveness of the sailing vessels, the captains who steer them and stakeholders' participation on the journey.

Kelvin Teo Co-founder and Group CEO Funding Societies, Modalku

As a SPAC is an initial public offering (IPO), the potential of SPACs depends on the strength of Singapore as an IPO market. Going public in the United States or Hong Kong is the dream for many tech entrepreneurs, and Singapore could be the next rising star. There are clear pros and cons for SPACs, but the option of a SPAC would serve as a catalyst if there are a few successful flagship examples. With tech investments in South-east Asia gaining interest, tech startups here maturing, and global geopolitical tension looming, Singapore is well-positioned to become a tech IPO hub.

Callum Laing Chief Executive Officer MBH Corporation PLC

No. A SPAC can shortcut the process of getting listed, but if there are no buyers on the other side, it doesn't matter what the mechanism is. Liquidity is everything. Let's also not be so blinded by the occasional success story that we ignore the failure rate of tech SPACs. They have proven a great mechanism for venture capital to exit positions they otherwise would not be able to. But is that really a definition of success?

Lawrence Loh Director, Centre for Governance and Sustainability NUS Business School

With the proper governance, SPACs will definitely position Singapore not only as a tech IPO hub, but more broadly, as a sustained financial hub of the world. SPACs provide a viable route for potential listings, here and overseas, to seek capital innovatively beyond the traditional methods. They also offer options for investors to attain financial objectives in new ways. A SPAC is just a vehicle - how much you can take out of it depends on how much you put in. The window for Singapore to make a mark globally will not last long. The new package of initiatives to jump-start the SPAC landscape is timely and critical.

Svend Janssen Head of Asia-Pacific and Japan Nuix

Over the last years, the Singapore government has done an outstanding job in creating a business environment that has helped founding and growing tech startups in Singapore. Obviously, not every idea makes it to the IPO stage. However, those that do will be great to keep in country. We should avoid what is currently happening in Europe. Seeking greater investor exposure, some companies tend to not do their IPO in a home marketplace - such as Frankfurt, Zurich or London - and instead, rather go straight to Wall Street. Supporting SPACs will definitely help Singapore to create and sustain an attractive tech IPO environment.

Vineet Mishra Co-head of Investment Banking, South-east Asia JPMorgan

The introduction of SPACs in Singapore - together with other recently announced initiatives as well as the increased market focus on, and appetite for, the technology sector in South-east Asia - should attract interest from the region's fast-growing companies looking to access capital. By providing these hyper-growth companies another avenue to list locally, SPACs could broaden the range of industries represented in Singapore's equity markets, traditionally dominated by firms in the real estate, consumer and infrastructure space. The SGX's SPAC rules have been able to replicate the best practices and safety features from other markets and are seen as attractive to both potential sponsors and investors.

Vikas Nahata Co-Founder and Executive Chairman Validus Capital

This is an excellent initiative. We believe it will have far-reaching consequences in not just making Singapore a tech IPO hub, but also providing a material home ground for emerging tech companies. Singapore has done well to attract tech startups and mature companies, but quite a few of them looked elsewhere for their next stage of growth, driven by their public market capital-raising needs. Also, listing on the local exchange will provide a further boost to the ecosystem's development, widening the local talent pool and raising the profile of the country as a whole.

Leon Perera Chief Executive Officer Spire Research and Consulting

SPACS hold out the promise of quick and early access to the benefits of an IPO for high-growth companies without the risks associated with the vagaries of the IPO market. This new vehicle may help unlock investor funds from - and stimulate startup growth in - the Asean region which forms the natural catchment for Singapore-based SPACS. The speed and degree of consultation reflected in the roll-out of Singapore's SPACS listing framework has been praised. But investors, both individual and institutional, would do well to remember the importance of diversification of asset classes. And market participants should recognise that SPACS are not a panacea for reviving liquidity in our local bourse.

Ian Chapman-Banks CEO and Co-Founder Sqreem Technologies

Allowing SPACs to list on the SGX is a great thing, as it completes the virtuous circle of support from pre-seed all the way to exit, allowing investments to be recycled within Singapore. This way, the Singapore brand and investment ecosystem can be further grown to boost the deep-tech and fintech startup landscape. While the SGX is currently great for investing in dividend-paying stocks and government-linked companies, the listing of SPACs will create opportunities for it to help strengthen brands in Singapore, and for companies like Sqreem, this is a great alternative to listing in the US.

Victor Mills Chief Executive Singapore International Chamber of Commerce

Just like every business needs to innovate to grow, so every stock market needs to refresh its products from time to time. When managed well, product innovation sustains vibrancy and attracts more investors to a market. Given that our goal is to attract high-tech and, hopefully, high-growth startups, it makes sense to facilitate funding and listing. SPACS are one component of recently announced initiatives to achieve our goals. They come with plenty of risks, but Singapore is good at managing risk. You can be sure the checks and balances are all in place to expand our market while protecting its integrity.

Jeffery Tan Group General Counsel and Chief Sustainability Officer Jardine Cycle & Carriage

SPACS are only one element of the necessary ecosystem to successfully transform Singapore into a tech IPO hub. Other factors include a vibrant tech startup environment, available funding, pragmatic regulations and an intangible ''entrepreneurial hunger'' to propel startups into unicorns, ready for IPO - be it through the normal route of IPOs or SPACS.

But one key element for SPACs' success in Singapore will probably come from gaining traction and acceptance by local home-grown tech unicorns, who will cast their vote in favour of the emerging Singapore SPAC market - the same way the Reit sector was created in Singapore through the grit, gumption and unwavering commitment of the various stakeholders in that sector.

Bernadette Cho General Manager, Singapore Entrepreneur First

Singapore is already known as a hub for startups, but what's more exciting is seeing how it is actively courting opportunities to be the ecosystem leader for emerging companies to scale from South-east Asia. Beyond more viable exit options, launching SPACs on the SGX will signal to entrepreneurs that this is not only a launch pad to catalyse great ideas, but the right place for a startup's end-to-end growth journey.

Lex Lee Chief Strategy Officer TOP International Holding

Singapore's IPO scene has been lagging its competitors in the number of new listings and proceeds raised. At the same time, it also lacks diversity and dare we say, excitement, since Singapore's benchmark index is dominated by finance and property companies. It has so far failed to even attract Singapore-based regional companies, such as Grab, to list on its own turf. With the offering of SPACs, SGX seems to be ahead of the pack in Asia by being the pioneer. This is definitely a positive step for SGX to enhance its portfolio while it continues to ensure quality listings for the benefit of investors.

Kannan Chettiar Managing Director Avvanz

As a tech company, Avvanz gets regular calls from investors not just from Asia, but also from the US and Europe. There is growing attention on Singapore-headquartered firms, especially in the tech space. Singapore's move to offer the SPAC route - the first bourse in Asia to do so - will inject more enthusiasm in our local IPOs as it is faster than traditional IPOs and can generate strong valuations. SPACs give tech firms faster access to public capital and liquidity.

The only drawback is the minimum market capitalisation of S$300 million, which would mean the target companies need a market cap of more than S$1 billion, which would rule out many innovative tech companies. How many unicorns are out there anyway? This puts a lot of tech companies like us back to traditional funding vehicles.

Saurabh Gupta Co-Founder and Board Member Vistas Media Acquisition Co

SGX's SPAC offering is well-timed and a boost for Asian companies, particularly in South-east Asia. Currently, not many entities - especially those in the US$500 million to US$2 billion valuation with a localised business model - meet the US investors' requirements, and will stand to benefit from SGX SPAC exits. SGX's SPACs will benefit from the strong venture capital (VC)/private equity ecosystem that Singapore has built over decades and continues to focus on with the initiation of variable capital company funds. SPACs will further lead to the enhancement of Singapore's tech ecosystem for listed growth companies that will continue to integrate with or boost the technology sector value chain, post de-SPAC, thereby creating long-term shareholder value.

Kelvin Chen Chief Executive Officer Kent Ridge Health

The SGX framework is likely to appeal to local investors. The timing is good as there are plenty of targets that are too small for the US and an SGX listing would serve them well. I am also very interested in this route.

It will also have an advantage over Hong Kong, as SPACs there will have to raise at least HK$1 billion (S$173.9 million) and only professional investors will be able to participate before the de-SPAC stage.

Singapore's inclusion of detachable warrants is also a plus over Malaysia, but our local exchange's lack of liquidity remains a concern for investors. It's also good as Asian investors here are more familiar with the targets and are in the same time zone.

But many of them are concerned that the Singapore market is just not large enough yet. It's a chicken and egg problem for Singapore, because: How do we manage to get people to come to Singapore and increase the liquidity, when their biggest concern is liquidity?

Terry Smagh SVP and GM, Asia-Pacific and Japan BlackLine

While SPACs do contribute to Singapore's development as a tech IPO hub, this also subjects companies looking to list to more scrutiny at the regional and even global level. Companies need to pivot from merely focusing on innovation to recognising the importance of accountability, especially when dealing with shareholders, the authorities, regulatory bodies, customers and media.

From a finance perspective, this entails strengthening controls in place to identify and mitigate internal risks, or investing in scalable processes to handle growing transaction volumes and accounting complexities as the business evolves. Building a rigorous internal process will help increase confidence from external parties, especially those with vested interests.

Johnny Lim Director Resource Law LLC in alliance with Reed Smith

One key feature of SPACs is their promise of upfront liquidity, unaffected by market volatility. This is undoubtedly a plus point for capital-intensive, fast-growing tech companies, to consider a listing in Singapore. Other plus points include the recent initiatives from the Singapore government and Temasek to encourage tech listings, and also the concentration and availability of high-net-worth individuals, family offices and funds based in Singapore who are likely to be interested in investing at the PIPE (private investment in public equity) stage. The competition is intensifying nonetheless - London announced its new SPAC rules just prior to Singapore's, and Hong Kong's consultation for SPACs comes barely a week after Singapore's SPAC rules are announced. Singapore will need to capitalise on its early-mover advantage and continue to build up the momentum for tech listings, furthering the adage: ''Growth begets more growth''.

Charles H Ferguson General Manager, Asia-Pacific Globalization Partners

I think SPACs could be a boon to our burgeoning tech startup scene in Singapore. They might help finance nascent tech companies that are working towards attracting more private investment, but are too small to do an IPO. This could attract a lot more venture capital investment and startups from the neighbouring Asean countries to consider Singapore as a regional ''Silicon Valley'' for funding. More importantly, startups could benefit from SPACs' experienced management teams. Given the pandemic-induced economic uncertainty, the ongoing US-China trade competition, and instability in Hong Kong, Singapore should be an ideal listing platform for global investors, and the attention focused on SPACs should be a welcome area for investors to lean in to as Singapore's bourse continues to gain prominence in the global landscape.

Sandie Overtveld Vice-President WalkMe Asia-Pacific

Sophisticated financial markets and funding instruments will no doubt attract high-growth tech and next-generation businesses to Singapore. The key, however, to sustaining the tech growth and development, is a multidimensional approach to nurturing global tech talent, leadership and culture. The advent of next-generation technology will ultimately benefit Singapore's global standing only if the nation is relentless in pursuing the adoption of digital technologies and upskilling of our talent and people, while building the digital infrastructure to support future growth.

Yan Lee Founder and Managing Partner Hive

Singapore's latest S$1.5 billion fund announcement to support late-stage startups' plans to go public, along with a comprehensive SPAC framework, make the country an attractive choice for promising tech firms looking to get listed. A strong regulatory SPAC framework will likely ensure stability and scale for SPAC sponsors, companies and investors alike, and further foster interest and imbue confidence. With all this in mind, not only can Singapore become an ideal location for tech public listings, but also a blueprint for the world on enabling startups to reach the next stage of their growth.

Tonny Loh Partner Heidrick & Struggles Singapore

SPACs could boost Singapore's standing as an IPO hub by providing an accelerated and more streamlined pathway to access public markets. However, SPACs will have to operate with accelerated execution timelines and deal with the complexity of both people and organisational integration. Experienced senior leadership will be indispensable in guiding the entities through the SPAC and de-SPAC process successfully. And while important, it shouldn't just be about quick listing to generate profit for shareholders. Organisations looking to the SPAC process to raise capital should also have a strategy for long-term value creation to benefit their ecosystems and communities. This requires a careful and balanced approach to attracting top talent, putting in place a strategy and governance structure to build up the right culture and mix of functional expertise.

Nagesh Devata V-P, Apac Payoneer

The SPAC framework has the potential to act as a catalyst for further growth and innovation in Singapore, accelerating its position as a tech IPO hub. SPACs offer an alternative path to going public that can be more attractive during volatile times, due in part to the increased speed to market, the certainty of financing, and the ability to share financial projections. These benefits ultimately led to Payoneer choosing to list via SPAC earlier this year, giving us an incredible platform for future growth that may not have been available through a traditional IPO route.

However, business leaders should be careful not to rush to market simply because a SPAC opportunity presents itself. They must make sure their company is stable and innovative enough to survive and thrive as a public company. In the long term, a company's route to market won't matter as much as fundamental business strength and stability of performance.

Chris Sirise Partner Saison Capital

Liquidity is an important trait of a healthy startup hub, so SGX's initiative to introduce SPACs will be very much welcomed by both founders and the venture sector. Doing so will provide another listing option for investors familiar with their home market in South-east Asia and signal to more exit opportunities to come.

Chia Ngiang Hong President Real Estate Developers' Association of Singapore (REDAS)

SPACs provide opportunities for high-growth private companies with mature management teams to merge and draw in high-quality sponsors from abroad as well as locally, to enhance our stock market. It could help to establish Singapore as the listing destination of choice for high-tech growth companies. They offer the advantages of time zones, familiarity among investors, quicker path to listing, and less onerous paperwork. However, as the marketplace becomes more saturated with tech SPACs and on the back of crackdowns on big tech firms increasingly becoming a global phenomenon, tangible safeguards and assurances are critical. I am confident that with Singapore's sound and enlightened governance, our regulators will ensure a robust SPACs framework with proper safeguards that will provide comfort to sponsors, business owners, investors, managers and other stakeholders alike. Hopefully, this will help grow SPACs as a legitimate, mainstream financing tool and turn Singapore into a tech IPO hub.

Stuart Fisher Regional V-P, Asia-Pacific and Japan Couchbase

The transformation of Singapore into a global tech startup environment requires a sophisticated approach to not just funds, but sustaining a vibrant global tech culture. A more diverse pool of talent is required to drive innovation and the incubation of ideas and concepts. By positioning to be a financial centre for the next-generation, high-growth technology sector, Singapore stands to gain, but only if it can encourage a culture of creating, developing technology, ideas and leadership. Today, we are on the cusp of global standards in our technology development and vision, not only in Singapore but also the region. We have seen some of the fastest-growing next-generation tech firms launch from Singapore and this will be a significant part of the nation's future agenda.

Frankie Chia Managing Partner BDO LLP, BDO Raffles

SPACs could provide new economy companies with the potential to grow exponentially as they seek access to capital to fund their expansion plans. The SPAC structure and speedy process may benefit its investors and sponsors while accessing the public market despite not having significant operating history.

However, the trade-off for speed is thoroughness in due diligence that could result in poor decisions. The regulator will have to balance these concerns.

Encouraging SPACs could potentially be a good strategy to turn Singapore into a tech IPO hub in the Asia-Pacific region and in revitalising the conservative SGX into a vibrant and exciting one.

Sumesh Balakrishnan Member EGN Singapore

I expect that with the addition of SPAC listings, the SGX will be able to attract more investors due to the diversification of investment products and the further addition of liquidity to the capital markets. In Singapore, the digital wave - especially in electric vehicles, smart tech, greentech & ESG (environmental, social and governance) ventures - could benefit from SPACs, as we've seen similar companies reap benefits in the US. I think that with the right framework, and a more friendly climate for investors, the SGX could attract the type of niche tech firms that Singapore had previously lost to Hong Kong and the US.

Hsien-Hui Tong Executive Director, Investments SGInnovate

The more instruments there are for companies to list, the more vibrant the market and our tech ecosystem are likely to be. While this is a step in the right direction, the fundamental issues of market liquidity and overall retail investor appetite for tech firms need to be addressed. Tech companies need to maintain their growth trajectory to instil greater confidence in this sector and show that it can outperform traditional sectors like finance and property. Ensuring that they succeed in this endeavour and positioning Singapore as the best place to list will require a diverse range of resources, beyond funding, including access to talent and the right platforms to catalyse partnership and collaboration.

Maren Schweizer Chief Executive Officer Schweizer World Group

SPACs are another essential building block on Singapore's avenue to become Asia's Silicon Valley while leveraging its leading position as a vibrant tech hub in South-east Asia.

Singapore's stock market has been traditionally dominated by finance and property firms, held mostly as dividend plays, and is short on tech names. In the past quarters, there has been momentum and appetite building in Apac, particularly in South-east Asia, where tech-focused startups and unicorns - and their investors - view SPACs as a more efficient monetisation or ''exit'' option when compared to conventional IPOs.

While China's capital markets offer fundraising options to their domestic firms, companies from South-east Asia, generally speaking, have fewer options and are expected to be more open to the SPAC alternative for fundraising. The SGX signal comes at the right time to pull the market towards Singapore.

We also need top-flight sponsors to launch their SPACs in Singapore and attract quality companies.

Luke Lim Managing Director Phillip Securities Pte Ltd

Investors should not be enamoured with SPACs. The multiple bells and whistles in SPACs create an aura of sophistication. It is merely another investment vehicle to deploy funds into aspiring technology companies. A tech hub requires a large pool of funds available for SPACs. Various funding initiatives announced are a great kick-starter but we are competing with even larger hubs and pools of funding globally. Singapore should differentiate and create a hub for relatively smaller but higher growth companies, supported by our investment in research and investor education, and one that gives equal access to retail investors, even at the IPO stage of a SPAC.

Sanjeev Kumar Singapore Senior Country Manager and Head of S-E and South Asia Natixis Corporate and Investment Banking Asia-Pacific

There are plenty of companies - tech players and tech unicorns among them - in South-east Asia that have been looking to go public. The SPAC route could be a popular option for them, given it is faster and presents a lower cost alternative to the traditional IPO. Natixis' global mergers and acquisitions network has been increasingly active in this space. With Singapore now accepting the SPAC structure, a number of SPACs backed by regional sponsors or with regional target acquisition mandates have access to an investor base that's much closer to their home market. On top of that, Singapore has a longstanding reputation as being a well-regulated market. That said, factors such as valuations and market fundamentals are still key considerations for any company looking to go public, and much work remains to be done in terms of investor education.

Ong Yu-En Head of Singapore Norton Rose Fulbright (Asia) LLP

The Singapore Stock Exchange's new framework for SPACs is encouraging for the market and makes sense as part of the wider tech-friendly approach Singapore has taken. SPAC listings in Singapore offer an attractive alternative to traditional IPOs, but it may take time for a SPAC to de-SPAC with Singapore targets, given the maturity of the local market. So, sponsors may need to look across the wider South-east Asia region for more immediate opportunities and where start-ups are in more advanced stages of growth.

Azman Jaafar Managing Partner RHTLaw Asia LLP

SPACs appear well-suited for technology companies as they are in stages of fast growth that require much capital to fund innovation. It may be an alternative path to an IPO, but in the current environment, managers of SPACs may find technology targets too speculative and the deals too difficult to close. The high-growth tech space has its associated risks. To turn Singapore into a vibrant tech IPO hub, we will not only need strong SPAC management teams, but also the ability to protect investors' interests in a commercially practical way.

Lars Voedisch Managing Director PRecious Communications

Singapore has been seeing a continuous pipeline of new initiatives positioning the country as a listing destination of choice for up-and-coming technology startups taking the SPAC route. However, the city-state still has a long way to go to reach higher ambitions in this SPAC-tacular era. While the stage has been set, a lot of work would need to be done to connect key players in the ecosystem. From our own experience, this includes spurring awareness, educating stakeholders, and setting the right expectations as the way forward. The biggest ambitions have to start with the first step - and in this case - laying the groundwork as Singapore sets its sights not only in being just a hub for tech startups in the region, but also supporting and enticing startups to list at the SGX.

Ashish Rai Group MD, Apac and Mea, Capital Markets FIS

The new SGX listing rules will certainly improve the attractiveness of Singapore for tech companies looking to go public via a SPAC, especially as this provides the prospect of relatively simple access to money at a time when ''traditional'' routes are drying up. However, interest in SPACs is still at an early stage in Asia. While the SPAC market in US has found huge success, it remains to be seen how this trend will play out here. Will every SPAC formed ultimately merge into an established company? No. But I think enough deals are being worked on that they will remain a viable lane for tech startups considering how to fund the next stage of their growth.

As SPACs are a rapidly evolving universe, with a number of complexities (life cycle management, due diligence, valuation, et cetera) involved in a SPAC deal, many investors will likely remain cautious. Nonetheless, we should see the innovative tech companies of tomorrow - whether they are working with artificial intelligence, machine learning or blockchain - at least consider a SPAC as they discuss their future.

Toby Koh Group MD Ademco Security Group

Fundraising is a key operating component of any startup. Singapore's quick decisive move to encourage funding here is certainly the correct move and complements our goal of becoming the high-tech startup capital of Asia. It will help to establish Singapore as the financial centre and wealth hub that we have been labouring towards.

Having said that, we have plenty to do in order to catch up with the Hong Kong Stock Exchange (HKEX). Perhaps SPACs will be one of the catalysts.

Mario Singh Chief Executive Officer Fullerton Markets

Singapore has so far been behind the curve when it comes to building out a tech IPO hub.

Even when we zoom out and look at listed companies as a whole, we have just three new listings on SGX this year, up to Sept 16. According to data from Refinitiv, these companies have raised a total of S$239 million, far behind our regional counterparts like Malaysia, Indonesia, Philippines and Thailand.

That said, I do believe that SPACs can move the needle for tech listings in Singapore. SPACs have been the buzzword in the capital markets for most of 2020, led by the US. The Anchor Fund @ 65 and Growth IPO Fund will certainly help to sway tech founders to consider Singapore as a viable listing venue.

However, to truly transform Singapore as the darling hub for tech IPOs, we must double down on our national brand as the gateway to the US$3 trillion economy of South-east Asia.

Darrell Wright Managing Director, Apac Cognito

Singapore has long been the regional hub for technology companies, including the FAANG group of tech giants that have set up headquarters or major regional offices here. However, expecting a galactic leap to become Asia's Nasdaq seems a little lofty. Instead, we should focus resources and attention on encouraging Singapore's growing list of fintech startups to go public with SGX. Utilising the S$1.5 billion Anchor Fund @ 65 together with the SPAC framework will increase the chances of many companies successfully going public, but by keeping the objective focused on becoming a fintech IPO hub, the city may be able to capture a real niche advantage.

With Singapore-based fintech startups such as Aspire, StashAway, Syfe, and Nium announcing ambitious growth trajectories backed by big investment capital, these are the types of companies that could and should be encouraged to list with SGX. In doing so, Singapore can become the pre-eminent listing destination for fintech firms around the world.

Percy Hung Co-founder and CEO Choco Up

Singapore is already the most prominent tech hub in Asia, with no shortage of VC firms and a diverse funding ecosystem. However, what is missing is a relatively easy and accessible path to public listing. The introduction of SPACs to SGX will enable just that, and provide much lower market or pricing risks common to IPOs. As a revenue-based funding provider, we know that even highly successful startups have issues getting the capital they need fast enough to fuel their growth. SPACs would be a fantastic way for companies to achieve public status, providing companies excellent brand exposure and access to capital. This will reinforce Singapore's position as a strong tech IPO hub in the region.

S Nasim Group Executive Chairman Meinhardt Group International, Singapore

The recent initiatives to make SGX the destination of choice for listing companies in the high-growth and high-tech sectors are both timely and admirable. SGX has sought to increase its IPO activity for years with little success in attracting large tech firms.

Generally, a decline in interest rates is a positive sign for equity markets, and therefore, for equity listings and capital raisings. SPAC listings on the exchange will further enhance the tech ecosystem.

SGX operates under reasonable rules of good governance, so we can be cautiously optimistic that this initiative will invigorate the listing activity. Currently, participation from foreign investors is limited and trading volumes are small, indicating a lack of vibrancy. The delistings in recent years and the fall in the market capitalisation of companies are also concerning. In addition, Singapore has a limited pool of domestic firms with smaller stock values.

Singapore has nonetheless strengthened its position as a leading wealth hub in Asia, with private banks overseeing assets of more than US$2 trillion and offering alternatives in structured products, real estate, and private equity. SGX is therefore well-placed to take advantage of the SPAC-listing opportunity.

Ang Shih-Huei CEO and Co-Founder Klareco Communications

SPACs have accelerated public listings in the US to a record volume last year but brought with them concerns and risks around quality, governance, and returns to shareholders. While Singapore's efforts to drum up the local bourse - including the latest regulatory green light on SPACs listings - are commendable and could help boost the volume of tech listings here, efforts must be made to safeguard investor confidence and trust such that Singapore avoids the same concerns facing SPACs in the US.

Edmund Lee Managing Director, Singapore and Market Leader, Singapore and Malaysia TMF Group

TMF Group welcomes this development by SGX in offering alternative capital fundraising routes to high growth companies and providing investment opportunities to a wider range of investors. Singapore has a very innovative and dynamic tech sector, but many such homegrown tech companies have sought listings overseas.

The introduction of SGX's SPAC framework promotes the flexibility and competitiveness of Singapore capital markets, while also implementing adequate safeguards for investor protection.

In contrast, HKEX seems to be taking a more onerous approach with proposals to limit pre-acquisition SPAC trading only to professional investors and also for the target companies to meet all Hong Kong IPO listing requirements.

Given TMF Group's licensed trust company in Singapore and our global presence in more than 80 jurisdictions, we are well placed to assist with SPAC escrow requirements involving cross-border transactions.

Kong Wan Sing Founder and CEO JustCo

The new SGX SPAC framework provides an additional meaningful funding option for tech and other companies in Singapore. Importantly, this SPAC framework was followed by new public-private funding initiatives. Taken as a whole, this package of SPAC plus new measures provide end-to-end encouragement for tech and other startups to grow, thrive and list in Singapore.

Dhruv Arora Founder and CEO Syfe

As a homegrown company, we welcome this positive move and believe it will give an added boost to the local and regional startup ecosystem.

Such initiatives from the regulators provide additional opportunities for startups to grow and be rooted in a region where their products and potential are used and appreciated by consumers. These customers can also eventually be investors in SPAC listings too.

These positive steps will bolster Singapore's standing as a hub for tech companies in the region to secure funding, both publicly and privately, for their next phase of growth.

Aaron Tan Chief Executive Officer Carro

While efforts like Anchor Fund @ 65 are a step in the right direction, overall, SPACs will not help to make Singapore into a tech IPO hub. SPACs are not new; they have been around for some time, and come and go cyclically. Furthermore, recent IPOs in regional markets, such as Bukalapak on the Indonesia Stock Exchange, have shown that traditional IPOs done properly in a local market can also command a premium and launch successfully. Ultimately, tech companies choosing to go public will have to make a balanced and informed decision on the availability of liquidity and the possible valuation they can achieve at IPO. Hence, doing SPACs alone will not guarantee a vibrant tech IPO hub.

Ben King Country Director Google Singapore

The renewed interest in SPACs is not without good reasons and could be the key to unlock Singapore's tech IPO potential. Importantly, this latest package of initiatives - while greatly advantageous for the local economy - is only one of the many levers needed to secure our leading spot as a technology innovation hub in Asia and beyond.

We will need to maintain a nurturing environment for budding tech startups to thrive here, through a comprehensive ecosystem that provides support at every stage of their growth, including their early stages. This involves accelerator programmes and initiatives that go beyond funding, such as Google for Startups, to provide the necessary training, mentorship and networking opportunities to set them up for greater success.

Lim Soon Hock Managing Director PLAN-B ICAG

If Singapore is to be a listing destination of choice, SGX must keep up with the trends of going public. It is therefore heartening that SGX is going ahead with SPACs, the flavour of the day, especially for high-growth and high-tech sectors, in spite of potential investment risks.

Instead of remaining a follower, SGX should leverage its vantage position to innovate and take the lead to introduce new models of listing, to give companies - both local and foreign - more choices. In this way, Singapore can lead the competition, especially from the Hong Kong, London and New York bourses, and perhaps overcome some of our limitations with regards to liquidity, institutional investors, and the retail investor community.

The latest new funding initiatives (such as Anchor Fund @ 65 and Growth IPO Fund) to accelerate the growth of promising local firms, though overdue, will be a boon to Singapore's public market and strengthen SGX's position as a stock exchange of choice.

It will take more than SPACs to transform Singapore into a vibrant tech IPO hub, if SGX is content to be a follower.

Henry Tan Group CEO Nexia TS Group

SPACs have been around for a while and their popularity in the US has attracted interest in Singapore as well. I see SPACs as another version of RTOs (reverse takeovers) that Singapore is very familiar with, except that a SPAC would have already raised funds before acquiring a business. The success depends on the latitude given to the SPAC in its acquisition. If the acquisition requires similar regulatory scrutiny like a IPO, then the SPAC expedience is defeated. If we adopt what the US is doing, we have a good chance to be an Asian hub for tech SPACs or special-themed SPACs. While the opportunity is there, equally, there will be pitfalls where SPACs are not able to secure sufficient acquisition targets. We will have to ensure a vibrant target sourcing and available operating business pipeline.

David Leong Managing Director PeopleWorldwide Consulting Pte Ltd

SPACs provide an alternative format to raise funds, but on a reverse approach. The typical and logical approach is to build a business first and then raise funds for expansion purposes. Through SPACs, funds are raised first, then acquisition targets are solicited. Both are just ways for businesses to thrive with funding availability. Whether it is ''business-meets-money'' or ''money-meets-business'', the funding rationale is the same.

With SPACs, there are strengths and limitations. One strength is the aggregation of funds by trusted sponsors so the ''trust-pivot'' is on the sponsor to secure a good business to fuse with. However, there is a time limit to search for suitable targets, otherwise the SPAC has to be dissolved and the funds returned. This ''time-tension'' may land the money in wrong places, since discovery of suitable assets takes time.

The SPAC mechanism by itself cannot make Singapore a tech IPO hub. The ecosystem must be filled with a critical core of funding entities and tech startups, and it must be dynamic and vibrant with supportive policies for the startups to flourish. Money naturally finds good assets to vest in, one way or another, SPACs or otherwise.

Alexander Harrison Country CEO, Singapore and Chief Operating Officer, Apac Barclays

A concerted effort in working with the ''right'' company to ''test-case'' this would be an important milestone. That will entail not only a successful SPAC listing, but also a successful de-SPAC, and ultimately, sufficiently active post de-SPAC trading liquidity and research coverage. This requires clarity around regulations and process focusing on the practical execution versus the theoretical vision.

Will the current move into SPAC listings be sufficient to overcome the inherent queries on the depth of liquidity (or lack of) in Singapore? Will there be sufficient volume of unicorns to target, outside of the US and China, to make this move more than just an addition to the existing product suite? In summary, there are lots of areas to work through and it's generally too early to call.