Singapore Proposes Tax Incentives to Revive Stock Market
Key Insight: The Singapore government is proposing tax incentives to revitalize the stock market, which has been facing low liquidity and a lack of new listings.
Proposed Measures:
* Tax measures to attract企業 to list in Singapore
* Incentives for fund managers to launch and grow funds that invest in domestic equities
Review Group:
* Led by Second Minister for Finance Chee Hong Tat
* Includes representatives from the Monetary Authority of Singapore (MAS), Temasek Holdings, Singapore Exchange, and other public and private sector participants
* Will provide a comprehensive update on the first set of measures on February 21, 2023
Additional Initiatives:
* Initiatives to foster long-term development and growth of the stock market will be announced in the second half of 2023
Challenges:
* Concentrated global capital in a limited number of major stock exchanges
Goals:
* Provide growth capital access for Singaporean enterprises
* Attract quality enterprises with a regional presence to list in Singapore
Market Outlook:
* Singapore's equity market has been facing low trading volumes and frequent delistings
* Only four IPOs in 2024, with a total value of $34.4 million
* Positive signs with potential companies looking to list subject to market conditions
* Straits Times Index has gained about 2.5% in 2023 after a strong rally in banks last year