Singapore to announce shareholder ‘value unlock’ plans this year

Against a global rally in shares, the country’s benchmark Straits Times Index is trading at a record high and stock market turnover is increasing

Singapore plans to unveil details of a “value unlock” package later this year, as the government takes further action to boost interest in its stock market.

“Singapore companies can and must do more to deliver greater value,” Chee Hong Tat, deputy chairman of the Monetary Authority of Singapore, said at a conference in the city-state on Friday. “Too often, companies make the wrong assumption that if they have strong revenue growth and healthy earnings, these will automatically translate into better share prices.”

Chee said a review group that has been tackling how to invigorate the equities market is also working on ways to support companies in unlocking shareholder value. Such a move would mirror actions taken in other markets like Japan, Korea and Thailand, where authorities have pushed listed companies to raise returns by improving management and corporate governance.

Singapore has already unveiled a range of measures to encourage more participation in trading its stocks, and the government-led review group has said it continues to look for more ways. This has seen some success. Against a global rally in shares, the country’s benchmark Straits Times Index is trading at a record high and stock market turnover is increasing. The IPO market is also seeing early signs of revival.

“We are working with SGX to provide more platforms that can help our smaller companies,” Chee, who’s also the minister for national development, said.