The past couple of years have seen various Asian countries taking significant measures to combat what has been described as a “discount” in their stock marketsThis issue has prompted several nations to introduce plans aimed at revitalizing their financial landscapes, ultimately attracting foreign investments.

Japan was at the forefront of this initiative, implementing corporate governance reforms that led to what analysts have dubbed the “Nikkei Special Valuation” phenomenonFollowing this, South Korea attempted to replicate Japan’s success last yearHowever, its efforts faced challenges due to domestic political instability, providing only limited impactMeanwhile, China launched several economic stimulus policies that invigorated its stock market, particularly with the introduction of the AI model, DeepSeekThis innovation has positioned the Chinese stock market as a newfound favorite among foreign investorsOn the other hand, despite having experienced nine consecutive years of stock market growth, India has seen a decline since the fourth quarter of last year, prompting the Reserve Bank of India to cut interest rates for the first time in five years in a bid to spur economic activity and market rejuvenation.

With many Asian countries unveiling their stock market stimulus measures, Singapore has also entered this competitive landscapeOn February 21, the Monetary Authority of Singapore announced through a statement its commitment to addressing the low liquidity and apparent shortage of new listing companies within the country’s stock marketA special working group led by the Singapore government is set to propose its initial recommendations aimed at invigorating the market, which may include tax incentives designed to attract more companies to consider Singapore as a prime listing destinationAdditionally, this initiative seeks to establish and grow investment funds that would make substantial investments in the domestic stock market.

After the preliminary measures are revealed, the subsequent plans will focus more keenly on fostering sustainable long-term growth within the stock market, with details expected to emerge later this year

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In 2024, the Straits Times Index of Singapore boasted a 15% increase, marking the best performance in nearly seven yearsCurrently, driven by the robust rebound of the banking sector, the index has also shown a 2% uptick year-to-dateDespite these positive indicators, Singapore’s stock market is grappling with stagnant trading volumes; the number of stocks delisted from the Singapore Exchange frequently surpasses that of newly listed companiesData compiled by the media indicates that there were only four initial public offerings on the Singapore Exchange in 2024, raising a mere $34.4 million— the second-lowest total in over two decades.

For traders who have experienced the peaks and troughs of Singapore’s market over the years, the current environment starkly contrasts with the record highs seen in 2007. Wang, the CEO of Azure Capital, remarked, “Back in 2007, we witnessed an abundance of market liquidity, and everyone was buzzing about stocksToday, the Singapore market is merely one of many options available to global investors, and it consistently remains in a rather dismal state.”

According to analysts at Morgan Stanley, daily trading volumes in the Singapore stock market fall significantly below those in other Asian countries such as Australia and ThailandSimilarly, nearly 90% of daily trading activities in Singapore are concentrated in the top 30 stocks out of a pool of more than 600 listed companies, with a considerable number of these stocks trading under $10 million dailyA report from UBS earlier this year indicated that retail investors account for only 15% of total stock trading in Singapore, compared to 35% in India and a staggering 87% in China.

In response to these challenges, the Singapore government established a specialized task force last August, led by Xu Fangda, aimed at enhancing stock market vitality and exploring ways to encourage greater private sector participation in stock investmentsThis task force comprises representatives from the Monetary Authority of Singapore, Temasek Holdings— a state investment company, the Singapore Exchange Limited, and other public and private sector affiliates.

Xu outlined the task force's goals, stating, “Everyone has recognized that it is imperative to take action to improve the situation facing Singapore's stock market

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