S Nallakaruppan calls for broader inclusion in stock market review committee amidst concerns over SGX’s future

Mr S Nallakaruppan, President of the Society of Remisiers (Singapore) (SRS), has voiced his concerns over the exclusion of key market participants from the newly formed Review Committee tasked with revitalizing Singapore’s stock market.

In a recent LinkedIn post, he emphasized the importance of including organizations such as SRS and the Securities Association of Singapore (SAS) in the committee’s work, given their critical roles in the market.

This call for inclusion comes shortly after Mr Nallakaruppan was quoted in a July 2024 article by Channel NewsAsia (CNA), where he reflected on the decline of Singapore’s stock market from its peak in the 1990s.

He nostalgically recalled 1993 as the “golden year” for the market, highlighted by the bull run of the Straits Times Industrials Index and the landmark public listing of Singapore Telecommunications (Singtel).

However, he lamented the current state of the market, describing it as being in a “rock bottom” condition, characterized by low liquidity, poor valuations, and a lack of excitement that has led to a “vicious cycle” of delistings and scarce new listings.

Mr Nallakaruppan pointed out that SGX had only seen one minor IPO in the first half of 2024, which underscored the need for urgent action.

“The days of a buzzing stock market are long gone,” he told CNA. “We need a jumpstart. The moribund stock market is like a person in an intensive care unit and the heartbeat is getting flatline.”

He proposed a bold approach, similar to the Singtel IPO in 1993, by listing another significant government-linked company to reignite market interest and activity.

In his LinkedIn post, Mr Nallakaruppan expressed his disappointment that neither SRS nor SAS were included in the 10-person Review Committee, which was established by the Singapore government on 2 August 2024.

The committee, chaired by Second Minister for Finance and MAS Board Member Mr Chee Hong Tat, is charged with assessing the current state of Singapore’s equities market and recommending measures to enhance its vibrancy and competitiveness within the next 12 months.

“As a true blue Singaporean, let alone a Broker, I would like to play my part for my beloved country to share my 30 years of first-hand experience in the industry and hopefully rebuild the fortunes of our Singapore market to its once glory days in the 1990s,” Mr Nallakaruppan wrote.

He also referenced Prime Minister Lawrence Wong’s recent National Day message, which called for agility, foresight, and innovative solutions to propel Singapore forward. Mr Nallakaruppan urged the government to translate these words into action by including experienced market participants like those from SRS and SAS in the committee’s work.

“We’re offering ourselves to play our part to take our beloved nation forward and make the Singapore stock market a premier one in the Region if not the World!” he concluded.

Background on the Review Committee:

The formation of the Review Committee comes at a critical time for Singapore’s stock market, which has struggled with declining trading volumes, a dearth of new listings, and increasing competition from other financial hubs in the region.

The committee’s primary mandate is to identify the challenges facing the market and propose measures to address them, with the aim of restoring the market’s vibrancy and positioning it as a key player in the global financial landscape.

The committee comprises leaders from both the public and private sectors, including representatives from government agencies, financial institutions, and business organizations.

It will focus on three key areas: attracting and grooming a pipeline of companies for listing on the Singapore Exchange (SGX), creating a more vibrant and liquid marketplace, and reviewing the regulatory framework to support a pro-business and pro-investor environment.

However, the limited representation from private market participants, particularly those directly involved in the day-to-day operations of the stock market, has raised concerns within the financial community.

• Chee Hong Tat 
  Minister for Transport, Second Minister for Finance, and Board Member of the Monetary Authority of Singapore
• Chia Der Jiun 
  Managing Director, Monetary Authority of Singapore
• Dilhan Pillay
  Chief Executive Officer, Temasek Holdings
• Euleen Goh
  Chairman, Singapore Institute of Management
• Koh Boon Hwee 
  Chairman, Singapore Exchange
• Lai Chung Han 
  Permanent Secretary (Development), Ministry of Finance
• Lee Chuan Teck 
  Chairman, Enterprise Singapore
• Lim Ming Yan 
  Chairman, Singapore Business Federation
• Neil Parekh
  Non-Executive Chairman, Asia, Tikehau Capital
• Png Cheong Boon 
  Chairman, Singapore Economic Development Board