Singapore’s Stock Market Is Stirring — But Revival Will Take More Than Hope

For years, Singapore’s stock market has been described with a single, unforgiving word: sleepy. Low trading volumes, shrinking listings and investor indifference turned what was once a regional equity hub into a market better known for delistings than debuts.

Now, there are signs of movement.

Recent reporting by Channel NewsAsia suggests that Singapore’s equity market is beginning to show life again. Trading activity has picked up modestly, some companies are revisiting listing plans, and policymakers appear more openly committed to reform. On the surface, it feels like the market may finally be turning a corner.

But the deeper question remains: is Singapore’s stock market genuinely reviving — or merely twitching?

A Flicker of Optimism, After a Long Winter

There is no denying that sentiment has improved. After years of anaemic IPO pipelines, capital raising activity has edged higher, and investor engagement — particularly in small- and mid-cap stocks — has become less moribund.

Yet context matters. Singapore is rebounding from a very low base. For much of the past decade, the number of listed companies steadily declined, liquidity thinned, and valuations struggled to reflect underlying business fundamentals. The result was a self-reinforcing cycle: weak trading discouraged listings, and fewer listings further weakened trading.

What we are seeing today is not a renaissance — it is a tentative thaw.

Structural Problems Don’t Solve Themselves

The uncomfortable truth is that Singapore’s equity malaise has always been structural, not cyclical.

Liquidity remains thin by global standards. Many institutional investors treat SGX-listed equities as peripheral holdings, while local wealth overwhelmingly gravitates toward private markets, real estate, bonds or overseas stocks. Without sustained trading depth, even quality companies struggle to command fair valuations — a powerful deterrent for prospective issuers.

This problem has been extensively analysed, including by The Independent, which has pointed out that Singapore’s market has struggled to escape pessimism despite multiple revival efforts. Incentives and campaigns have come and gone, but none have meaningfully altered the market’s underlying dynamics.

Why Listing Rules Matter More Than Ever

One area where momentum may finally be building is regulatory reform.

As The Independent has previously reported, Singapore’s push to modernise listing rules has taken on new urgency amid rising IPO failures in China and volatility across global markets. This is not coincidental. In a world where capital is mobile and issuers have choices, markets compete on structure as much as stability.

Rigid listing requirements, conservative valuation expectations and limited post-listing liquidity make Singapore less attractive to high-growth companies — especially in technology, digital services and new-economy sectors. Meanwhile, markets like India and Indonesia have captured mindshare by offering scale, participation and growth narratives that Singapore has struggled to replicate.

If SGX wants to matter again, modernisation cannot be cosmetic. It must address eligibility thresholds, post-listing support, analyst coverage and — crucially — demand-side participation.

The Demand-Side Problem No One Likes to Talk About

Most discussions about reviving Singapore’s stock market focus on supply: how to attract more companies to list. Far less attention is paid to demand: who will actually trade these stocks, and at what scale?

Without broader participation — from domestic institutions, pension funds, and long-term capital pools — liquidity will remain structurally constrained. This is not a regulatory footnote; it is the core of the problem.

Markets thrive when investors believe prices reflect information, growth and opportunity. When trading is thin, confidence erodes — and confidence, once lost, is painfully slow to rebuild.

A Crossroads, Not a Comeback

Singapore’s stock market today sits at a crossroads.

The recent uptick in activity is encouraging, but optimism alone will not fix a decade-long erosion of relevance. Without bold reforms — not just to listing rules, but to market participation, incentives and investor engagement — the current recovery risks becoming another false dawn.

Singapore has the ingredients: strong governance, global credibility and deep financial expertise. What it lacks is frictionless capital flow within its own public markets.

Until that changes, the SGX may continue to stir — but true revival will remain just out of reach.