Dear readers, it was announced today that a review group will be set up by the Monetary Authority of Singapore to give recommendations on how to strengthen the development of Singapore’s stock markets.
One of the areas to look at will be on the less-than-ideal initial public offerings (IPOs) on the SGX: there were 6 IPOs in 2023 and only 1 IPO in 1st half of 2024.
Another area to be looked at is the double-digit delistings on SGX in recent years.
I really hope that the review group will not be just looking at quantitative KPIs: number of IPOs, number of delisting, as part of the review on the Singapore stock markets.
As a veteran investor, from the perspective of an investor, I really believe that the stock markets exist to serve the community of investors. To put it bluntly, it is really about whether investors have profited from their investments on SGX.
And hence one metric which I really hope that the review committee can look at is how has the Singapore stocks markets been benefitting the community of investors all these years? How have lives improved as a result of the Singapore stock markets?
Or maybe one goal from the review could be to see how the Singapore stocks markets could be structured to maximise more “Wins” than “Loss” for the average retail investors.
Noting that each investment carries uncertainties, the above suggestion is not totally impractical. For example, I have heard and I myself have lost quite a sum of monies in some penny or small-cap stocks which are not sustainable. Hence one way for authorities is to ensure only companies with a certain fiscal background and standing can list in Singapore.
Just a humble view of mine.