SGX RegCo consults on regulatory changes to streamline IPO rules
[SINGAPORE] Listed issuers on the Singapore Exchange (SGX) will be expected to take on a more proactive role in providing timely and relevant disclosures, focusing on material information rather than following prescriptive requirements.
The change comes as the Singapore Exchange Regulation (SGX RegCo) seeks market feedback on the proposed regulatory changes aimed at transitioning to a more disclosure-based regime, it announced on Thursday (May 15).
These changes include streamlining qualitative mainboard admission criteria, refining quantitative mainboard admission criteria, removing the financial watch list, as well as revising post-listing queries and obligations.
It said the proposed changes are in line with an approach that 'adopts a pro-enterprise stance alongside measures to strengthen investor confidence'. These reforms are part of recommendations to revive the local market, which were announced by the Monetary Authority of Singapore (MAS) equities market review group in February 2025.
The changes are expected to complement other measures announced by the group to promote institutional participation, and foster an attractive and trusted market. These include the S$5 billion Equity Market Development Programme and tax incentives to encourage greater investment in Singapore-listed equities.
The group also recommended adopting a more 'pro-enterprise regulatory stance' with regulatory measures moving Singapore towards a more disclosure-based regime.
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'This will smoothen the path for enterprises to access the capital markets, allowing investors an expanded range of investing opportunities and better ability to make investment decisions in reliance on relevant and material information,' said Tan Boon Gin, chief executive officer at SGX RegCo.
The aim is to assure market participants that the information on which they base their decisions is accurate and accessible as well as maintaining a fair market.
'To that end, we will ensure that regulatory oversight of both corporate disclosures and trading activity remains rigorous, even as we refine the manner in which such oversight is conducted and communicated, to ensure relevant and material information for investors is disclosed,' he added.
Streamlining admission criteria for mainboard listings
The proposed changes will also include streamlining the qualitative admission criteria for mainboard listings. SGX RegCo intends to maintain a prescriptive approach in critical areas such as an applicant's financial position and the track record of its directors, management and controlling shareholders.
For other matters, the emphasis would be on ensuring companies provide relevant and robust disclosures to support informed investor decisions, rather than mandating how such matters should be resolved.
Market participants told The Business Times that the moves could boost SGX's appeal as a listing destination, but cautioned that such a shift must be accompanied by robust investor safeguards, corporate governance and investor education.
'Traditional, prescriptive metrics often make it difficult for such companies to list – one reason we see so few tech firms on our exchange,' said Terence Wong, CEO at Singapore-based fund manager Azure Capital.
He also stressed that investor education becomes even more critical in this new environment, as investors need to learn how to extract key insights from increasingly detailed disclosures.
Luke Lim, managing director at brokerage Phillip Securities and chairman of Securities Association of Singapore, said: 'This approach recognises that today's capital markets are more diverse, dynamic and investor-led than ever before. Instead of prescribing what companies should or should not do, disclose with clear, relevant, and timely disclosures – and then let the markets decide.'
Lock Yin Mei, managing director of Venture Law, noted that a merit-based assessment of qualitative criteria, such as conflicts of interest, represents only a snapshot at a specific moment.
She said that as facts and contexts evolve, a prescriptive approach may not always be appropriate for every issuer.
'The alternative of disclosure and explanation, makes the issue public and places the responsibility with the issuer and professionals, for which under the proposals, they can be taken to task,' she added.
Balancing regulatory oversight and market empowerment
To support good companies, SGX RegCo is also proposing to remove the financial watch list, citing concerns over its unintended impact on business confidence and financing.
The regulator said companies will still be required to announce if they report losses for three consecutive years. In the meantime, its half-yearly reviews related to placing companies on the watch list will be suspended.
However, companies already on the list will remain listed during this period, regardless of whether they meet the exit criteria.
In addition to the proposed listing rule changes, SGX RegCo also plans to refine its approach to post-listing queries and obligations.
The regulator noted that issuing public queries for immaterial matters could create unnecessary alarm in the market.
It is therefore proposing a more calibrated approach, including shifting to private engagement in certain cases, narrowing public disclosures to price-sensitive or trade-sensitive information, limiting the validity of trade-with-caution alerts to two weeks, and updating its suspension framework.
All feedback is to be submitted by Jun 14.
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Straits Times
7 minutes ago
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Sue-Ann Tan is a business correspondent at The Straits Times covering capital markets and sustainable finance. Join ST's Telegram channel and get the latest breaking news delivered to you.
Business Times
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Cooked in Singapore: the tough road to success for homegrown chefs
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Local chefs sometimes have to work harder to prove their ideas are worth backing, especially if they're trying to do something that doesn't fit neatly into existing categories.' Law Jia-Jun, chef-owner of Province. PHOTO: PROVINCE 'There is pressure to prove that my food can be seen as comparable or equal to that of non-Singaporeans, especially those who are known at home and abroad,' says Law Jia-Jun, who opened his restaurant, Province, in 2023. 'Like it or not, platforms like the Michelin guide shape public and investor perception, and most of the Michelin restaurants here are helmed by foreign chefs.' So far, no Singaporean chef-fronted restaurant holds more than one star, and this feeds 'a certain perception about who is 'worthy' of recognition'. Province serves progressive Singaporean cuisine. PHOTO: PROVINCE He recalls a recent conversation with another chef who had plans to open an izakaya. 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On its part, the Singapore Tourism Board also 'supports our local talents in prestigious international competitions to elevate Singapore's global culinary standing,' says Cherie Lee, director, lifestyle and attractions. Most recently, it supported Leong's participation in this year's Bocuse d'Or Grand Final, and worked with him 'beyond the competition to drive awareness of Singapore's food scene through our social platforms. STB also 'collaborates with homegrown events and global partners, including 2024's Singapore Food Festival and 2025's Kita Food Festival to showcase Singapore's culinary excellence internationally,' adds Lee. The way ahead 'We need to show that cooking local food, especially at a higher level, is a viable and rewarding career path,' says Wee of Lo & Behold. 'Young chefs often gravitate towards other cuisines... because of what they're exposed to or (because) certain cuisines are more globally recognised, and that makes hiring for local restaurants an even bigger challenge.' He adds: 'To shift that mindset, we need to spotlight chefs doing meaningful work with local food and show that there's creativity, depth, and a future in it. Visibility helps, but it needs to be matched by structural change. That includes reforming culinary school curriculums so local cuisine is taught with the same rigour as European cooking. 'We also need to shift the conversation from preservation to innovation, and cultivate an audience that's curious, open, and willing to value new expressions of Singaporean food.' For veteran chef Ace Tan, who launched his Chinese-inspired restaurant Asu last year, the key is not to pigeonhole the definition of a 'Singaporean restaurant'. 'It's more accurate to consider it as a Singaporean chef presenting their interpretation of Asian, cross-cultural cuisine. The landscape has evolved significantly since I started this path in 2015 (with the short-lived Restaurant Ards) – there's now a growing appetite and appreciation for contemporary Asian concepts across East Asia,' he says. 'Investors today are increasingly interested in strong, distinctive chef-driven narratives, regardless of nationality. What matters is the authenticity of the story and the quality of execution.'
CNA
6 hours ago
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Polish President Andrzej Duda on first state visit to Singapore in over 20 years
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