Dear readers, Singapore’s stock market has been making headlines for the right reasons this year. The benchmark Straits Times Index (STI) has not only surged past the symbolic 4,000 mark, but has also held its ground consistently above it — a psychological milestone and a sign of robust investor sentiment.
Amid global economic uncertainty and cautious outlooks in other developed markets, the resilience and resurgence of Singapore’s stock market has inspired cautious optimism among local investors, fund managers, analysts, and regulators alike. However, in this celebratory mood, it’s important to pause and ask a deeper question: What is the true measure of success for our rejuvenated Singapore stock market?
Let’s first explore the drivers behind this recent bullish trend.
REASONS FOR THE STI’S STRONG PERFORMANCE
Several key factors have contributed to the Singapore stock market’s positive momentum year-to-date:
1. More IPO Activity
A significant improvement in the number of initial public offerings (IPOs) has been widely regarded as a sign of growing market confidence. Among the notable IPOs or upcoming potential ones in 2025:
- NTT Data Centre REIT (DC REIT): While it closed flat on trading debut day at IPO price, it was 9.8 times oversubscribed by retail investors, highlighting strong interest in yield-accretive REITs tied to global megatrends like data infrastructure.
- Lum Chang Creations: Tied to listed Lum Chang Holdings, this IPO exemplifies how established conglomerates are unlocking value via subsidiaries.
- Coliwoo REIT: A hospitality-focused REIT emerging from LHN Group, again reflecting a spin-off model to generate investor interest in niche real estate segments.
- Centurion Accommodation REIT: A spin-off from Centurion Corporation, further showing a pattern of parent companies monetizing assets while allowing focused investment strategies in their sub-verticals.
While some critics argue that many of these are restructured listings rather than fresh new entrants, they still represent greater market vibrancy and liquidity opportunities.
2. MAS’ Equity Market Development (EMD) Programme
In July 2025, the Monetary Authority of Singapore (MAS) rolled out the long-anticipated Equity Market Development programme, appointing institutional fund managers such as:
- Avanda Investment Management
- Fullerton Fund Management
- J.P. Morgan Asset Management
These fund houses are being tasked with channelling capital into Singapore-listed equities, especially under-covered, mid-cap stocks. The aim is to increase analyst coverage, improve trading volumes, and enhance Singapore’s standing as a global capital hub.
3. Improved Retail Sentiment
There has also been a palpable improvement in retail investor sentiment. Following the dismal IPO drought between 2022–2023, investors are now starting to believe again that Singapore-listed stocks — especially dividend-paying REITs and value plays — deserve a place in their portfolios.
WHY IPO NUMBERS AND STI READINGS ARE NOT THE REAL METRIC
It’s tempting to look at these developments — surging index levels, IPO numbers, institutional inflows — and declare a success story. But should we? Is this number game really the best way to assess whether Singapore’s stock market reforms are working?
After all, a few facts remain:
- Some IPOs like NTT DC REIT traded below their IPO price shortly after listing.
- Other spin-offs may lack operational independence or face thin trading liquidity.
- Retail investors may still feel alienated due to low price transparency, complex prospectuses, or past negative experiences with IPOs.
Hence, the true rejuvenation of Singapore’s stock market cannot be measured by volume alone — not number of IPOs, not daily turnover, not even the STI index level.
THE ONE TRUE MEASURE: ARE RETAIL INVESTORS BETTER OFF?
Instead, we argue that the only true measure of success is this:
Are Singaporean retail investors better off than before?
Because when retail investors thrive, listed companies, financial intermediaries, and the entire capital market ecosystem do too. Let’s break this down further into key areas.
1. Better Access to Investment Opportunities
Have stock market reforms made it easier for everyday Singaporeans to understand, access, and participate in the equity market?
Recent developments are encouraging:
- More transparent disclosures via SGX initiatives like fast-track listings and simplified prospectuses.
- Retail-focused offerings, such as digital bank IPO allocations, more real estate income-based REITs, and dividend-centric companies.
- Improved access through digital platforms (e.g., end-to-end mobile IPO subscriptions through DBS, OCBC, UOB).
If the average Singaporean can now more confidently invest in a stock or REIT — with fewer intermediaries, less complexity, and lower cost — that’s real progress.
2. Stronger Investor Protection and Governance
MAS and SGX RegCo have also tightened governance to protect investors:
- Greater scrutiny of independent directors to avoid conflicts of interest.
- Enhanced clawback mechanisms and transparency requirements in IPO prospectuses.
- Reforms around REIT fee structures to align managers’ incentives with unitholders.
These changes build investor confidence, which is essential for sustained retail participation.
3. Market Performance That Rewards Long-Term Holding
What does STI at 4,000 mean if most of the index gains are concentrated in just a few heavyweight stocks like DBS or UOB?
For true rejuvenation, broad-based market gains are essential.
Recent months have seen positive movements in hospitality REITs, property developers, manufacturing-linked plays, and even mid-caps like China Medical System Holdings. These indicate that returns are spreading beyond the usual suspects.
Moreover, stable dividend payers and REITs continue to offer income investors a viable alternative as T-bill rates dip below 2%.
When investors can stay invested for the long term and see compounding returns, the system works.
4. Higher Financial Literacy and Inclusion
The most important reform is often the least discussed: investor education.
Whether through SGX Academy, MoneySense, or social platforms like Seedly, there has been a notable rise in financial literacy. Topics such as:
- “What is a REIT?”
- “How to read a balance sheet?”
- “What is the cut-off yield of a T-bill?”
are now common knowledge among many Singaporean investors, even students and retirees. This transformation is vital for long-term success.
When retail investors are informed, they can resist herd behaviour, avoid scams, and make better risk-adjusted decisions.
5. Trust in the SGX Ecosystem
Ultimately, the Singapore Exchange (SGX) must be seen as fair, efficient, and trustworthy — for both local and international investors.
The biggest win would be when a young Singaporean says:
“I trust SGX. I believe I can grow my wealth here over the next 30 years.”
Trust leads to long-term capital, not hot money. It leads to shareholder activism, not apathy. It creates a virtuous cycle where businesses list on SGX because retail investors show up — not just institutional capital.
THE ROAD AHEAD: WHAT CAN BE DONE NEXT?
While progress has been encouraging, there is still much work to be done:
a) Attract More High-Quality Listings
Beyond spin-offs, Singapore needs to attract regional champions — be it in tech, sustainability, AI, or healthcare — to list locally. Dual listings with US or HK could be a start.
b) Introduce More Retail Bonds and Perpetuals
Retail investors often feel sidelined when institutional-only offerings dominate. More retail-friendly fixed income products are needed.
c) Tackle Liquidity Challenges
Many mid-cap and small-cap counters still suffer from poor liquidity. The EMD programme must result in real analyst coverage and trading interest, not just headlines.
d) Revise Stamp Duties and Market Incentives
To make the SGX more competitive, policymakers could look at temporary waivers or incentives for long-term holders, similar to capital gains tax exemptions elsewhere.
IN CONCLUSION: SUCCESS IS MEASURED IN RETAIL PARTICIPATION
The STI may be at a decade-high. IPOs may be increasing. Big names may be buying in. But if Singaporean investors still feel left out, or worse — burnt — then the reforms have failed.
So let us measure the success of Singapore’s stock market rejuvenation not in points or billions — but in something far more meaningful:
The confidence, participation, and financial well-being of the average Singaporean investor.
Because when retail investors thrive, listed businesses do too.
And that, dear readers, is the only true measure of success.