Improved Financial and Regulatory Measures to Enhance SGX's Fundraising Potential in 2025
Singapore's stock exchange (SGX) is undergoing a significant revitalization in 2025, with a series of targeted measures aimed at boosting liquidity and trading activity, supporting new Initial Public Offering (IPO) admissions, implementing regulatory changes, and enhancing investor protection.
The strategic plan, announced by the Singapore Exchange (SGX), focuses on several key areas. In terms of IPO admissions, the exchange has seen renewed interest, partly due to new listings such as Info-Tech Systems and NTT DC REIT. To further support these listings and enhance market depth, the Singapore government launched the S$5 billion Equity Growth Dividend Plan (EQDP) in February 2025. This initiative is specifically designed to improve SGX liquidity and support higher trading volumes.
The SGX's securities daily average value (SDAV) grew 22% year-over-year to S$1.42 billion for January to May 2025, indicating positive momentum in market activity.
Regulatory changes are also a significant part of the revitalization plan. Effective July 4, 2025, there are key reforms enhancing market mechanisms, including an extension of the holding period from 3 to 4 years and increasing Seller’s Stamp Duty (SSD) rates by 4% for all tiers. These changes aim at promoting longer-term investment and stabilizing the market.
Investor protection is another crucial aspect of the revitalization plan. The government and SGX initiatives like the EQDP reflect a broader strategy to enhance investor confidence through improved market liquidity, transparency, and governance structures. The SGX and related stakeholders have continued to provide disclosures and detailed information to investors and directors to enable well-informed decision-making.
Jeremiah Huang, director of Icon Law, remains optimistic about the measures, particularly the proposed changes to IPO admissions and regulation. He notes that thin trading volumes and lack of liquidity stem from low market participation, and believes that the comprehensive package of measures will help address these issues.
Looking ahead, additional measures are expected in late 2025, aiming to uplift the shareholder engagement capabilities of issuers and strengthen investor protection by enhancing investor recourse avenues. These coordinated steps by SGX, the Monetary Authority of Singapore (MAS), and related bodies are designed to revive the exchange by attracting quality listings, sustaining trading activity, regulating market behavior, and safeguarding investor interests throughout 2025 and beyond.
The revitalization of SGX is a significant step towards maintaining Singapore's competitiveness as a financial hub in Asia. Despite a subdued performance in 2024, with only four new listings raising around 34 million Singapore dollars ($26 million), the MAS-led review group believes that 'quality listings' will revitalize engagement in the SGX. The group has recommended significant regulatory changes, including consolidating listing suitability and prospectus disclosure review functions, reducing merit-based judgment in new listings, streamlining prospectus requirements, and adopting a more targeted approach to post-listing queries.
In conclusion, the revitalization of SGX in 2025 involves a set of targeted measures aimed at boosting liquidity and trading activity, supporting new IPO admissions, implementing regulatory changes, and enhancing investor protection. These measures are designed to attract quality listings, sustain trading activity, regulate market behavior, and safeguard investor interests, thereby reviving the exchange and maintaining Singapore's competitiveness as a financial hub in Asia.
- Law firms, such as Icon Law, are closely monitoring the significant changes being implemented by the Singapore Exchange (SGX) in 2025, with a focus on the proposed regulatory reforms and their potential impact on Initial Public Offering (IPO) admissions.
- As part of the revitalization plan, the Singapore government has implemented the Equity Growth Dividend Plan (EQDP) worth S$5 billion to support new listings like Info-Tech Systems and NTT DC REIT, with the aim of enhancing market depth in personal-finance and general-news segments.
- To further uplift the shareholder engagement capabilities of issuers and strengthen investor protection, technology is anticipated to play a crucial role in providing detailed information to investors and directors, promoting well-informed decision-making in the business and education-and-self-development sectors.
- The Monetary Authority of Singapore (MAS) has recommended consolidating listing suitability and prospectus disclosure review functions, reducing merit-based judgment in new listings, streamlining prospectus requirements, and adopting a more targeted approach to post-listing queries, as part of their strategy to attract quality listings and maintain Singapore's competitive edge in the finance industry.
- Looking beyond 2025, the revitalization of SGX is expected to continue, with additional measures being implemented to further support new IPOs, encourage longer-term investment, and safeguard investor interests, all while fostering a technologically-driven, competitive, and resilient financial ecosystem in Asia.
