Boost market with public money or implement ‘value-up’ programme? Maybe just do both
In the end, improving the vibrancy of the Singapore market comes down to companies acting in a manner that benefits all their shareholders
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.
Gan went on to say that the review group set up by the Monetary Authority of Singapore (MAS) in August last year to recommend measures to strengthen the local market is studying how to ensure that any developmental capital from the government is deployed in a fiscally prudent manner.
He noted during his speech that the MAS review group is also looking into how the Singapore market can better attract high-quality, mid-sized listing candidates from around the region, as well as streamline regulations in order to reduce the compliance burden on listed companies while also enhancing investor confidence.
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