New listings, liquidity, regulatory framework, governance among priorities for MAS review of equities market

The Monetary Authority of Singapore’s (MAS) new review group has identified priority areas for two workstreams amid its ongoing review of local equity markets.  

Called the Equities Market Review Group, the panel was set up earlier this month to recommend measures to aid in the development of equities in Singapore.

It is chaired by Second Minister for Finance and MAS board member Chee Hong Tat, and includes private-sector stakeholders and public-sector representatives.

On Tuesday (Aug 27), MAS said the review group’s inaugural Aug 19 meeting discussed key challenges and opportunities facing Singapore’s equities market, and set out the strategic direction for the review.

It was decided that the enterprise and markets workstream would focus on ideas to encourage listings, increase investor participation, improve trading liquidity and facilitate fair valuation for listed equities.

Meanwhile, the regulatory workstream will study ideas to streamline Singapore’s regulatory framework, improve the listing process and enhance the effectiveness of the current disclosure-based regime. It also aims to strengthen corporate governance standards, investor access, and recourse.

Members of both workstreams announced by the review group comprised a mixture of capital market practitioners, investor advocacy groups, industry associations and academia.

Enterprise and markets workstream members include Singapore Exchange chief Loh Boon Chye, Temasek chief investment officer Rohit Sipahimalani, and GIC’s deputy group chief investment officer Bryan Yeo.

Singtel group chief financial officer Arthur Lang and the Securities Investors Association of Singapore’s (Sias) founder and president, David Gerald, count among members of the regulatory workstream.

MAS said the Equities Market Review Group and its two workstreams will provide periodic updates on their considerations and recommendations.

They also intend to engage stakeholders in the coming months through industry roundtables and focus group discussions to gather feedback and ideas.

Subsequently, they will assess actions required from government agencies and industry partners to enhance Singapore’s equities markets.

Though the review may take up to 12 months, the review group and its workstreams aim to announce their recommendations in phases to allow the proposed measures to be implemented as soon as possible. 

Source: Business Times © SPH Media Limited. Permission required for reproduction.

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