Brind.
Part of Market growth potential is being discussed, noting key home markets and liquidity flows through Singapore, involving entities like Maybank, Indonesia, and Malaysia.

How could Koh Boon Hwee's comments on local stock market liquidity affect the Monetary Authority of Singapore?

Possible What happens if… A possibility worth considering, not a forecast.

MAS may review market rules following comments on SGX liquidity issues His comments suggested structural fixes, such as removing SGX clearing and trading fees and encouraging proprietary trading to improve bid–ask spreads. As the financial regulator, the Monetary Authority of Singapore (MAS) may be prompted to review existing market rules and development programs, such as the S$6.5 billion Equity Market Development Programme (EQDP), to address these perennial issues affecting SMEs.

Reported by 1 independent outlet Written Oct 17
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How it reaches Monetary Authority of Singapore

Reported by news outletsBrind's reasoning

Tap any step to see the evidence behind it.

The facts so far

As reported. Each one links to where it comes from.

  • Many small- and medium-sized enterprises (SMEs) on SGX have market capitalisation below S$200 million (US$156 million).channelnewsasia.com
  • The Straits Times Index (STI) has surged from around 3,800 at the start of 2025 to well over 5,000 points today, driven largely by three local banks.channelnewsasia.com
  • The S$6.5 billion Equity Market Development Programme (EQDP) has brought on a burst of liquidity in the local market.channelnewsasia.com
  • Maybank noted that S$5.4 billion of the EQDP funds has 'yet to meaningfully appear as institutional buying in the market'.channelnewsasia.com

Why it matters

For SMEs, poor liquidity is a significant barrier to growth. When shares are thinly traded, companies struggle to use their stock as currency for mergers, acquisitions, or raising capital, regardless of their business prospects. This limits the overall dynamism and diversity of the local market.

The discussion places pressure on the regulatory framework. While the SGX has undertaken market revitalization measures, the critiques from its chairman suggest that the current mechanisms—including trading fees and market structure—may not be sufficient to ensure equitable price discovery across all market segments.

What we don't know yet

  • Will MAS mandate the creation of compulsory detailed forward earnings guidance templates for listed companies?
  • Will SGX implement the suggested removal of clearing and trading fees for proprietary traders?

What would change this answer

MAS issues a public statement acknowledging the liquidity concernsThis would increase the certainty of a regulatory review, potentially leading to stronger, more immediate changes to market rules.
SGX announces a pilot program for fee removal or proprietary trading incentivesThis would suggest the exchange is addressing the issue internally, potentially reducing the immediate need for MAS to intervene with sweeping regulatory changes.

Who else could feel it

Other possible ripples from the same event.

Reporting

Keep going

The full eventKoh Boon Hwee comments on liquidity challenges for small-cap stocks in Singapore Everything aboutMonetary Authority of Singapore

Brind's analysis is written by AI from the reporting linked above and can be wrong. This explainer is a possibility worth considering, not a forecast: steps marked as Brind's reasoning are not stated in the reporting. It is not investment advice; do your own research.