Investing Updates: Commentary: Singapore’s stock market is no longer just about the big boys

Source:

https://www.channelnewsasia.com/commentary/sgx-singapore-stock-market-sti-record-high-new-equity-index-mid-caps-5348586

ChatGPT:

After years of sluggishness, Singapore’s stock market is showing renewed vitality. The Straits Times Index (STI) rebounded 29 per cent from an April low to a record 4,375 in September 2025, driven by the big banks and Singtel. Yet the focus is shifting beyond these blue-chip counters. National Development Minister and MAS Deputy Chairman Chee Hong Tat announced plans for a new index to track large, liquid companies outside the STI, recognising that the STI’s 30 components represent just 5 per cent of over 600 SGX-listed firms.

The timing reflects a broader market upswing. Once-neglected mid-caps and second liners such as Boustead, LHN, Centurion, Wee Hur, and Kingsmen are hitting record levels. Trading since the second quarter has been dominated by these stocks, supported by the MAS’s S$5 billion Equity Market Development Programme, with S$1 billion already allocated to funds boosting mid-cap activity. A dedicated index could further draw institutional money and enable passive ETF trackers, expanding liquidity.

However, structural improvements also require companies to engage investors more actively. Beyond earnings briefings, management must communicate consistently and consider “safe harbour” rules for forward-looking disclosures to reduce regulatory fears. Such outreach would strengthen investor confidence, raise liquidity, and lower funding costs by allowing firms to tap equity markets instead of borrowings—creating a virtuous cycle of growth and capital access.

Global conditions add momentum. With funds flowing into Singapore amid geopolitical uncertainty and interest rates set to decline, equities are increasingly attractive. For investors who once overlooked Singapore in favour of regional plays, the tide may be turning. If the US economy stays steady and shocks are avoided, Singapore’s stock market could be on track for its strongest year in more than a decade.

Opinion:

Positive messaging from Singapore's press.