Other BriefingsSingapore Eyes Softer Listing Rules to Attract More Companies
In May, the Monetary Authority of Singapore (MAS) and Singapore Exchange Regulation (SGX RegCo) unveiled a major package of reforms aimed at lowering barriers to listing on the Singapore Exchange (SGX). These proposals come in response to a sharp decline in initial public offerings (IPOs), with only four listings completed in 2024 — none on the Mainboard — raising just US$31 million in total proceeds.
The proposed changes aim to modernize the listing regime by simplifying disclosure requirements, adjusting profitability thresholds, and allowing earlier engagement with investors. Together with new fiscal incentives, these reforms represent Singapore’s most comprehensive capital market update in years, targeting high-growth companies in sectors such as technology, biotech, and sustainability.
Why IPO activity has slowed
Singapore’s IPO market has contracted significantly over the past decade. By October 2024, SGX was home to just 617 listed companies, the lowest count since 2004 and well below the peak of 782 in 2013. The city-state’s profitability-focused admission criteria, including a S$30 million (US$23.3 million) cumulative profit threshold for Mainboard listings, have limited access for startups and innovation-driven firms that prioritize reinvestment over short-term earnings.
Meanwhile, regional exchanges have become increasingly competitive. Malaysia, for instance, recorded 46 IPOs in 2024, raising US$1.5 billion. In contrast, SGX captured less than 2 percent of Southeast Asia’s 122 total IPOs last year. Many firms have also opted for Hong Kong, Australia, or the U.S. to tap into deeper investor pools and more flexible listing frameworks.
Key proposals from MAS and SGX RegCo
The new reforms aim to reduce the compliance burden while enhancing the flexibility of the listing process. MAS has proposed streamlining IPO prospectus requirements by cutting down on duplicative disclosures, such as conflict-of-interest declarations and facility utilization details. Financial reporting obligations would be simplified to cover only the most recent full-year and interim periods. Importantly, MAS also intends to remove the requirement for third-party profit attestations, allowing companies to rely on board-certified projections instead.
A notable shift is the introduction of “testing-the-waters” provisions. These would allow companies to present preliminary materials and engage in discussions with institutional and accredited investors prior to submitting a formal prospectus. MAS is also evaluating whether such pre-marketing efforts can be extended to retail investors under appropriate safeguards.
SGX RegCo’s proposals reinforce this direction by moving toward a more disclosure-based model for IPO admission. The regulator plans to revise or remove rigid quantitative thresholds —especially the profit test — while clarifying post-listing obligations and eliminating outdated mechanisms such as the Financial Watch-list. These reforms are intended to facilitate listings by companies in sectors where traditional profitability metrics are less applicable, such as biotech and green technology.
Fiscal tools to reinforce regulatory reform
To complement the regulatory changes, Singapore has launched a comprehensive suite of fiscal incentives designed to attract listings and stimulate market activity.
At the core is the S$5 billion (US$3.8 billion) Equity Market Development Program, administered by MAS. This fund actively invests in SGX-listed equities to support liquidity, encourage institutional participation, and bolster price stability, especially for new issuers.
Reducing listing costs through tax incentives
MAS is also offering a corporate income tax rebate to reduce IPO-related costs. Companies pursuing a primary listing are eligible for a 20 percent rebate, while those conducting secondary offerings involving new share issuance can access a 10 percent rebate. These are capped at S$6 million (US$4.6 million) for companies with market caps over S$1 billion (US$778 million), and S$3 million (US$2.3 million) for smaller firms, with clawback provisions if the issuer delists within five years.
Aligning broader ecosystem policies
Singapore is reinforcing these reforms with complementary policies across its financial ecosystem. Family offices under the Global Investor Program are now required to invest at least S$50 million (US$38.9 million) in SGX-listed equities, injecting long-term institutional capital into domestic markets.
Fund managers establishing new operations in Singapore may also qualify for a 5 percent concessionary tax rate, contingent on dividend distributions and listed equity investments.
To improve post-listing performance and investor education, MAS has expanded the GEMS (Grant for Equity Market Singapore) program. This supports pre-IPO research and analyst coverage of mid-cap and growth companies, distributed through both institutional and retail channels.
Comparing SGX with regional and global competitors
Singapore’s reforms are unfolding in a region where other exchanges have gained ground. Malaysia has demonstrated strong IPO momentum in recent years, buoyed by an active retail investor base and a regulatory regime geared toward SME participation. While Singapore has historically positioned itself as a premium listing venue, the gap in deal volume underscores the urgency of SGX’s pivot.
At the same time, Hong Kong’s embrace of dual-class shares and Nasdaq’s dominance in deep-tech and biotech listings continue to draw high-growth firms globally. Against this backdrop, SGX is repositioning itself as a credible, cost-effective platform rooted in regulatory integrity, offering a compelling middle ground between liquidity, governance, and regional proximity.
Recalibrating SGX to support Singapore’s economic resilience
These reforms are not taking place in isolation. Singapore is facing increasing economic headwinds that make capital market revitalization a national priority.
After growing 4.4 percent in 2024, GDP slowed to 3.8 percent in Q1 2025, followed by a 0.6 percent quarter-on-quarter contraction, raising concerns of a technical recession. The Ministry of Trade and Industry has since downgraded its full-year 2025 forecast to 0.0–2.0 percent, citing weak external demand and geopolitical pressures.
Singapore’s overreliance on trade — once exceeding 300 percent of GDP — makes it particularly vulnerable to global disruptions such as U.S. tariffs, China’s slowdown, and shifting regional supply chains. Simultaneously, demographic trends are becoming a constraint: by 2030, one in four residents will be over 65, putting pressure on the labor force and domestic productivity.
In this context, SGX reforms are part of a broader strategy to diversify Singapore’s economic growth drivers. A stronger IPO ecosystem can mobilize capital toward innovation, enhance funding channels for scale-ups, and reduce the economy’s dependence on volatile trade flows.
What comes next
The public consultation on MAS and SGX RegCo’s proposals runs until June 14, 2025. Finalized changes are expected in Q3 or Q4. Companies considering an IPO should begin reviewing their internal structures, engage advisors early, and prepare for faster, more flexible listing conditions.
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