The Singapore Exchange (SGX) is set to introduce a new index aimed at tracking companies beyond the Straits Times Index (STI), according to Chee Hong Tat, Deputy Chairman of the Monetary Authority of Singapore. Announced during the Singapore Institute of Directors’ Directors Conference on 12 September, this initiative seeks to spotlight the broader equity market in Singapore, particularly the next tier of large and medium companies.
The STI currently represents only a segment of Singapore’s listed companies, and there is a growing investor interest in companies outside this index. The new index will provide insights into how these companies are evolving, focusing on aspects such as business model transformation, improved governance, and stronger capital management initiatives. Chee highlighted the importance of indices as tools that not only create visibility but also track performance across different industry or market segments.
Chee also expressed hope that more indices would emerge over time, covering areas like corporate governance and sustainability. Such developments are expected to create a virtuous circle, generating positive momentum for the entire market. This move aligns with efforts to reward excellence and inspire other companies through recognition mechanisms like awards and scorecards.
The introduction of this index is part of SGX’s broader strategy to enhance the visibility and performance tracking of Singapore’s diverse equity market, potentially attracting more investor interest and fostering a more dynamic financial landscape.
