Singapore is Encouraging Local Businesses to Join its Market
Singapore has been a global business center, especially for real estate transactions. To further boost growth, the city-state aims to attract more tech companies to its local market, as the tech sector is experiencing significant expansion.
“We have seen tech companies like Nanofilm succeed, and we want more of them,” stated Loh Boon Chye, CEO of the Singapore Exchange, in an interview with CNBC.
To achieve this goal, the Singaporean government is investing in its stock market to entice prominent tech companies from neighboring regions to list in Singapore. Collaborating with the state investment firm Temasek, the government is launching a new public fund to support companies in increasing their value. This fund will commence with a substantial injection of 1.5 billion Singapore dollars, equivalent to about $1.1 billion USD.
JUST IN: Singapore is strengthening its domestic stock market and startup ecosystem with funding measures to enhance its position as an Asian financial hub https://t.co/ouDKzv6b5h
— Bloomberg (@business) September 17, 2021
“The initiatives we are introducing today are not a quick fix,” mentioned Singapore’s Minister for Trade and Industry Gan Kim Yong when announcing the strategies.
“However, we believe they will invigorate our public equity market and make SGX a compelling choice for innovative growth companies seeking a public listing,” he added.
The market aims to attract “unicorns,” which are startups valued at over $1 billion. Gan suggested that these companies are on the verge of mature development, which could stimulate interest in listing publicly. Therefore, Singapore should strive to establish these companies within its market, according to Gan.
