Minister Highlights Need for Flexibility in Supporting Local Companies
Requiring companies to list on the Singapore Exchange (SGX) as a condition for government support could stifle growth and conflict with their strategic goals, said Minister of State for Trade and Industry Alvin Tan in Parliament. He emphasized that businesses often choose listing locations based on valuation prospects, investor accessibility, and market expansion plans.
For some firms, the US remains attractive due to its deep investor base and liquidity, while others opt for Hong Kong or China to align with regional expansion. Tan warned that mandating investment in locally listed firms might deter global investors, limiting capital inflows.
Responding to concerns about Singapore’s rising delisting trend, he noted that while government support exists, businesses ultimately make decisions based on commercial considerations. Since 2014, delistings have exceeded new listings, with 650 firms remaining on the SGX as of April 2023.
Tan acknowledged the challenges but stressed that while Singapore can facilitate a strong financial ecosystem, companies must retain the flexibility to pursue their best interests in a competitive global market.
