The Monetary Authority of Singapore (MAS) has established a review group to propose measures for strengthening the development of Singapore’s equities market.

The group, chaired by Chee Hong Tat, minister for transport, second minister for finance, and MAS board member, includes key stakeholders from both the private and public sectors, such as Temasek Holdings chief executive officer Dilhan Pillay.

In a statement, the MAS says a dynamic equities market is crucial for capital formation, complementing Singapore’s private equity and venture capital ecosystem.

A deep, liquid public equities market facilitates regional and global capital access for companies and allows investors to engage in the growth of quality firms. Enhancing the equities market's attractiveness supports Singapore’s status as a robust financial hub and complements its innovation, start-up ecosystem, private markets, and wealth management sectors, the city-state’s financial overseer says.

The government has already introduced initiatives to bolster enterprise financing and enhance the equities market, such as establishing cornerstone funds for initial public offerings of high-growth companies, introducing corporate structures and share classes for listings, and improving research coverage.

The review group will build on these efforts and explore additional initiatives to invigorate the equities market and increase private sector participation, involving capital market intermediaries, investors, and listed companies.

The review group will be supported by two workstreams: the enterprise and markets workstream, which will address market challenges, promote listings, and facilitate market revitalization; and the regulatory workstream, which will focus on enhancing the regulatory framework to support market growth and foster investor confidence.

The review process will engage stakeholders with diverse capital markets expertise, including corporate finance, investment banking, asset management, legal services, and corporate governance. The review group will also evaluate the current state of the equities market and propose measures to address identified challenges, incorporating insights from various market participants.

The areas of focus for the review group will include:

• Proposing measures to support Singapore Exchange-listed companies in building capabilities and expanding internationally;
• Reviewing regulatory approaches to create an enabling ecosystem, including the listing regime;
• Recommending strategies to attract primary and secondary listings to Singapore;
• Suggesting targeted measures to facilitate product offerings and enhance liquidity in the equities market; and
• Proposing outreach and communication strategies to enhance the market's attractiveness to issuers and investors.

The review group will aim to finalize its recommendations and complete its report within the next 12 months, the MAS says.