Morgan Stanley Research has released a report detailing the anticipated impact of Singapore Exchange Regulation’s (SGX RegCo) proposed regulatory changes, which aim to transition towards a more disclosure-based regime. The ongoing implementation of these reforms, first announced in February 2025, and a second set expected in the second half of 2025, are seen as significant positive drivers for the market.
SGX RegCo’s proposed reforms include streamlining Mainboard admission criteria by focusing on disclosure rather than prescriptive measures, and removing the financial watch-list, although issuers must still announce three consecutive years of losses. The reforms also propose refining post-listing queries to focus on material price-sensitive disclosures and enabling shareholder-requisitioned meetings.
Morgan Stanley’s report suggests that these reforms, alongside strong recent trading volumes, should support the Singapore Exchange’s (SGX) Overweight rating. The changes are part of a broader effort to adopt a more pro-enterprise stance, which is expected to enhance the attractiveness of Singapore’s equity market.
The report also notes that the continuous implementation of these market reform measures is crucial for maintaining momentum. “We see ongoing implementation of the first set of measures announced in February 2025, and the upcoming second set in the second half of 2025, as key positive drivers for the market,” the report states.
As Singapore continues to refine its regulatory framework, the market is poised for potential growth, with these reforms likely to attract more investors and issuers to the SGX.
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