Post by : Raman

Singapore is planning to announce a special “value unlock” package later this year. The goal of this package is to help make the stock market more attractive to investors. The government wants companies listed on the Singapore Stock Exchange (SGX) to focus not only on making more money but also on giving more benefits to shareholders.

Why Does Singapore Need This Plan?

Chee Hong Tat, Deputy Chairman of the Monetary Authority of Singapore, explained that many companies think that just having good sales and profits will make their stock prices go up automatically. But this is not always true. He said companies need to focus more on how they manage themselves and how they treat their shareholders.

This problem is not unique to Singapore. In other countries like Japan, Korea, and Thailand, governments have also asked companies to do more to give value to their shareholders. They want companies to improve how they run their business and follow good rules, which can help investors trust them more.

What Is “Value Unlock”?

“Value unlock” means helping companies find ways to increase the value of their shares for the people who own them. Instead of just growing their business, companies should find smart ways to use their resources, manage their work, and return more profits to shareholders. This can include paying higher dividends or buying back their own shares.

Chee Hong Tat said a special review group in Singapore is working hard to find new methods to help businesses unlock value. The group will share its ideas later this year.

Success So Far

Singapore has already taken many steps to improve its stock market. These actions include creating new rules to encourage more people to trade shares. As a result, Singapore’s main stock index, the Straits Times Index, has reached its highest level ever. More people are buying and selling stocks, and new companies are starting to list on the stock market again after some quiet years.

The government’s efforts seem to be paying off. More investors are now interested in Singapore’s stock market. Also, smaller companies are getting new opportunities to raise money and grow.

Help for Small Companies

Chee Hong Tat also mentioned that Singapore is working closely with the SGX to create better ways for smaller companies to participate in the stock market. These smaller companies may not have the same resources as big firms, so special platforms will help them raise funds and grow their businesses in a safe way.

Why Is This Important?

A strong stock market helps the country’s economy grow. It allows companies to raise money from investors and expand their business. It also offers people a chance to invest and earn returns. When companies focus on managing their resources well and giving more value to investors, the whole market becomes stronger and more stable.

In a world where people have many choices to invest their money, Singapore wants to stay attractive and competitive. By helping companies focus on giving more value, the government hopes to encourage more people to invest in Singapore’s future.

What’s Next?

Later this year, Singapore’s government will announce more details about the “value unlock” package. Investors, companies, and market watchers are waiting to see what measures will be introduced. These steps are expected to make the stock market even stronger, create new opportunities for small businesses, and offer better returns to investors.

Singapore’s plan shows its commitment to making the stock market work for everyone — big investors, small investors, and companies alike. It is a positive sign for the future of the economy, as well-managed businesses and happy investors go hand in hand.

Singapore economy, Stock market growth, Shareholder value, SGX, Financial reforms