Finance
MAS sets up review group in bid to revive its SGX development
Signage for the Monetary Authority of Singapore (MAS) is displayed outside the central bank’s headquarters in Singapore.
Sam Kang Li | Bloomberg | Getty Images
Singapore’s central bank has established a task force to bolster the city-state’s stock market.
The Monetary Authority of Singapore announced that the review group will evaluate measures to “improve the vibrancy” of the Singapore equities market.
MAS said on Friday the panel will focus on addressing market challenges, fostering listings, and facilitating market revitalization, as well as enhancing regulations to facilitate market growth and foster investor confidence.
It said another key goal will be to identify methods for encouraging private sector participation, including from capital market intermediaries, investors and listed companies.
The authority noted that a “dynamic equities market is an important part of the capital formation value chain,” and that a liquid market enables companies to not only access capital as they expand, but also “allows asset owners and the investing public to participate in the growth of quality companies.”
“Improving the attractiveness of Singapore’s equities market can therefore enhance Singapore’s standing as a vibrant enterprise and financial hub,” the MAS said, adding that this will also “[complement] Singapore’s innovation and start-up ecosystem, private markets, as well as asset and wealth management sectors.”
Despite the Straits Times Index rising in three of the last four years including 2024, Singapore’s stock market has been long plagued by thin trading volumes and more delistings than listings. This has led observers to describe the exchange as “boring,” “unexciting” and even once in 2021, a “zombie” bourse.
Turnover velocity at the SGX, a measure of market liquidity, stood at 36% for the whole of 2023, compared to 57.35% at the Hong Kong Exchange in the same period, and 103.6% at the Japan Exchange.
Analysts who previously spoke to CNBC outlined ways to revive interest in the SGX, including taking lessons from “value up programs” in Japan and South Korea.
The review group announced Friday will be chaired by Chee Hong Tat, Singapore’s second minister of finance, and also include members like Koh Boon Hwee, the current chairman of the SGX.
Money manager John Davi is positioning for challenges tied to President-elect Donald Trump’s tariff agenda.
Davi said he worries the new administration’s policies could be “very inflationary,” so he thinks it is important to choose investments carefully.
“Small-cap industrials make more sense than large-cap industrials,” the Astoria Portfolio Advisors CEO told CNBC’s “ETF Edge” this week.
Davi, who is also the firm’s chief investment officer, expects the red sweep will help push a pro-growth, pro-domestic policy agenda forward that will benefit small caps.
It appears Wall Street agrees so far. Since the presidential election, the Russell 2000 index, which tracks small-cap stocks, is up around 4% as of Friday’s close.
Davi, whose firm has $1.9 billion in assets under management, also likes staying domestic despite the tariff risks.
“We’re overweight the U.S. I think that’s the right playbook in the next few years until the midterms,” added Davi. “We have two years of where he [Trump] can control a lot of the narrative.”
But Davi plans to stay away from fixed income due to challenges tied to the growing budget deficit.
“Be careful if you own bonds for sure,” said Davi.
Since the election, the benchmark 10-year Treasury yield is up 3% as of Friday’s close.
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