STABLE, TRUSTED MARKET
Industry observers attribute the rebound largely to Singapore’s reputation for political stability, regulatory clarity and economic resilience.
Mr Chan Yew Kiang, ASEAN and Singapore IPO leader at business services firm EY, believes last year was the start of “renewed interest” in the Singapore equity market.
He said: “A large part has to do with Singapore (being) very stable, whether it’s politically or economically, and from a regulatory perspective. As long as we maintain the right balance, we will continue to attract interest from companies in Asia Pacific and internationally.”
That interest is already translating into a busier IPO pipeline.
Mr Chan said he now receives one to two IPO enquiries every other week, compared with roughly the same number over an entire year in the past.
“Companies these days need capital to grow, and they need to grow fast just to be able to compete … and the IPO remains a very strong source of funds for such companies who have got big growth plans,” he added.
Regional firms are increasingly eyeing Singapore as they expand supply chains and seek access to new markets, he noted.
“Singapore is actually quite an ideal destination for other Asian companies. (They’re using) Singapore as a base to reach out to the ASEAN and even the international markets,” he added.
“So, we expect more interest coming from retail, industrial and even some technology companies.”
Looking ahead, market watchers highlighted several potential tailwinds.
For instance, the United States Federal Reserve is widely expected to cut interest rates, a move that could benefit interest-sensitive sectors such as real estate investment trusts (REITs).
Supply chain realignments, increased adoption of artificial intelligence and stronger domestic construction activity could also support broader market growth, even as economic expansion slows.
“We are expecting to see a little bit of a slowdown, down to one to three per cent,” said Mr Geoff Howie, market strategist at SGX Group.
He said that while global growth is expected to slow, much of the economic activity and revenue remains resilient, generating a stable macroeconomic outlook.
Investor sentiment, he noted, remains cautiously optimistic, though greater retail participation is needed.
“We need to focus on initiatives, whether it’s their investor relations team communicating more with investors and having more engagement, or whether those companies are also looking to engage some corporate strategists to work out ways to optimise their balance sheets and so forth,” he added.