Morgan Stanley Research has unveiled a report detailing Singapore’s ongoing efforts to enhance shareholder value in its listed companies. Following a speech by Chee Hong Tat, Minister for National Development and Deputy Chair of the Monetary Authority of Singapore (MAS), at the Singapore Institute of Directors, the report outlines measures aimed at unlocking value in large-cap companies such as DBS, CapitaLand Investment, and Singtel.
The report anticipates that these reforms will elevate returns on equity (RoE) from 12%-14% and increase price-to-book (P/B) multiples to 2.3x. The Singapore Exchange (SGX) is expected to be a primary beneficiary as trading volumes rise. Other large-cap companies, including CapitaLand Investment, Keppel, ST, and STE, are also poised to benefit from a reduced cost of equity.
Chee Hong Tat emphasised the importance of companies communicating future strategies and maintaining a commitment to sustained returns. The Review Group is developing a comprehensive package to support these initiatives, with further details expected by the end of the year. The package will include grants and measures to enhance strategic thinking, communication, and collaboration among companies.
Morgan Stanley’s report also highlights the broader implications of these reforms, suggesting they will reinforce Singapore’s asset market attractiveness amid global diversification away from the US dollar. The ongoing reforms are seen as a strategic move to bolster Singapore’s position in the global financial landscape, with potential long-term benefits for investors and companies alike.
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