Opportunity knocks for S’pore to forge a healthy stock market to bolster its financial hub ambitions

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It has what it takes, and can catch the tailwinds delivered by geopolitics and poor market conditions in competitors.

A healthy stock market is a key component of a financial hub and an a critical ingredient for a healthy capital market.

However, Britain, Hong Kong and Singapore are all struggling to various extents with their stock markets. To make things happen, there has to be political determination and “top-of-the-house” buy-in at the highest levels of government. If left to the various government agencies, it could be mired in bureaucracy.

This has been done in several other markets, like Japan, Australia, India, Thailand and Malaysia, where a portion of domestic pension funds or sovereign wealth is invested in their domestic markets. About 200 more are awaiting approval to set up here. Fortune and other publications reckon that by 2030, Singapore will be Asia’s “millionaire capital”.

Singapore, given its stability, deep capital market and strong regulatory environments, has an opportunity to attract companies to win in this space.Singapore projected to be S-E Asia’s biggest market in digital lending and wealth: Report Likewise, start-ups which received grants, tax incentives and investment support should be mandated to list on the Singapore stock exchange. These will support Singapore’s ambition to be the Nasdaq of Asia and complete the domestic capital formation value chain.Equity is permanent capital. It offers an avenue for long-term corporate fund raising without turning to borrowing. While some leveraging is not necessarily bad, it can cause liquidity issues in times of stress.

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