By Daily Touch Insights Editorial Team
Editorial Team
View Journalist Profile

BUSINESS & FINANCE — Singapore already has a legitimate and established stock market through the Singapore Exchange, or SGX. But the bigger question is whether the city-state can transform its exchange into a deeper, more liquid and globally competitive equity market capable of attracting major companies and international investors.

The answer may be yes.

After years of concerns about limited equity-market activity and a weak pipeline of major new listings, Singapore's stock market is showing signs of renewed momentum in 2026.

SGX recorded 21 equity listings during its 2026 financial year, compared with six a year earlier, while companies raised approximately S$4.1 billion.

Trading activity also increased significantly, suggesting that the Singapore market may be entering a new period of growth.

But higher trading volumes and more IPOs do not automatically mean Singapore has solved its stock-market problem.

The bigger challenge is creating a market that companies want to list on, investors want to trade in and international institutions want to use as a long-term source of capital.

Singapore Already Has a Proper Stock Exchange

It is important to establish one fact first.

Singapore does not need to build a stock exchange from scratch.

The Singapore Exchange is an established international financial-market institution with equity, fixed-income, foreign-exchange, commodity and derivatives businesses.

The real issue is the depth and attractiveness of its equity market compared with larger financial centres.

A stock exchange can be technically sophisticated and well regulated while still struggling to attract enough companies and trading activity.

That has been one of the central challenges facing Singapore's equity market.

2026 Has Delivered a Significant Change

The numbers coming out of SGX in 2026 suggest that something is changing.

During the first half of its 2026 financial year, SGX recorded a significant increase in new equity listings compared with the previous year.

Trading activity also increased, with securities turnover reaching much stronger levels than during the corresponding period a year earlier.

The improvement suggests that investors are becoming more active in Singapore's market and that companies are becoming more willing to consider the exchange as a source of capital.

That is important because a stock exchange becomes stronger when both sides of the market grow at the same time.

The IPO Problem May Finally Be Improving

One of Singapore's biggest challenges has been attracting companies to list locally.

Companies have many choices when deciding where to conduct an initial public offering.

They can choose New York, London, Hong Kong, India, Australia or other financial centres depending on their industry, investor base and ambitions.

For Singapore to compete, simply having a respected financial system is not enough.

Companies need access to deep pools of capital and active investors.

The increase in listings during 2026 is therefore important because it suggests that the exchange may be becoming more attractive to companies seeking public capital.

But More Listings Are Not Enough

This is where Singapore needs to be careful.

It would be a mistake to measure the success of SGX simply by counting IPOs.

A company can successfully list on an exchange and still have weak trading activity afterward.

What Singapore needs is a complete ecosystem.

Companies need investors.

Investors need liquidity.

Analysts need enough companies to cover.

Market makers need sufficient trading activity.

And companies need confidence that remaining publicly listed in Singapore will provide them with long-term access to capital.

Without those conditions, IPO growth could become temporary rather than structural.

Liquidity Is the Real Test

For investors, one of the most important characteristics of a stock market is liquidity.

Liquidity determines how easily investors can buy or sell shares without dramatically moving the price.

Singapore has been working to improve this area, and trading activity has shown considerable growth during 2026.

That improvement matters because greater liquidity can make Singapore more attractive to institutional investors and international funds.

It can also encourage more companies to list because companies generally want their shares to have an active secondary market after an IPO.

Singapore Has a Major Advantage

Singapore possesses something many emerging markets would struggle to replicate: a strong international financial reputation.

The city-state has developed itself as a major centre for banking, asset management, commodities, foreign exchange and wealth management.

That creates a potentially powerful foundation for its stock market.

The challenge is connecting Singapore's enormous financial ecosystem more effectively with its public-equity market.

If the money already flowing through Singapore's financial system can be directed toward a larger and more active domestic equity market, SGX could become considerably more important.

Singapore Does Not Need to Beat America

There is another strategic mistake Singapore should avoid.

It does not need to become the next New York Stock Exchange.

Trying to compete directly with the world's largest stock market would be unrealistic.

Singapore's opportunity is different.

It could become one of Asia's most attractive international listing destinations, particularly for companies from Southeast Asia and other fast-growing markets.

That would give SGX a distinctive role instead of forcing it to compete purely on size.

Southeast Asia Could Be Singapore's Biggest Opportunity

The region surrounding Singapore contains hundreds of companies that may eventually need access to international capital.

Indonesia, Malaysia, Vietnam, Thailand and the Philippines all have expanding economies and growing technology and consumer businesses.

Singapore could position itself as the regional market where ambitious companies seek international investors.

Its reputation as a financial centre could make that proposition attractive.

But the exchange must offer companies something that their domestic markets cannot provide.

Technology Companies Could Change the Equation

Technology could be particularly important.

Singapore is home to major technology companies and has strong connections with the wider Asian technology ecosystem.

However, some of the region's most valuable technology companies have chosen to list outside Singapore.

That means Singapore has an opportunity to ask a difficult question:

Why should a major Asian technology company choose SGX instead of New York or another international exchange?

The answer needs to be compelling.

Global Companies Could Become an Important Target

Singapore can strengthen SGX by making it easier for qualifying international companies to access its market.

This would expand the exchange beyond companies based inside Singapore.

International listings could bring new investors, increase trading activity and give Singapore's market greater global visibility.

It would also help SGX develop a stronger identity as an international Asian exchange rather than simply a domestic market.

The Market Needs More Large Companies

Another weakness Singapore needs to address is the number of genuinely large growth companies listed on the exchange.

Large established companies are important because they attract institutional investors, analysts and international funds.

They also create liquidity that can benefit smaller companies.

Singapore already has major listed businesses in banking, telecommunications, aviation, industrials and consumer goods.

But building a stronger technology and high-growth-company presence could make the market more dynamic.

REITs Alone Cannot Carry the Market

Singapore has developed a particularly strong reputation for real-estate investment trusts.

REITs have played an important role in attracting investors to SGX.

However, relying too heavily on property-related securities would limit the exchange's growth potential.

A world-class equity market needs diversity.

It needs technology companies, financial companies, healthcare businesses, industrial companies, consumer brands and other high-growth sectors.

The more diverse the market becomes, the more attractive it can be to different categories of investors.

Institutional Investors Are Crucial

Singapore is already one of Asia's major asset-management centres.

That gives SGX an important advantage.

If Singapore can encourage more institutional capital to participate actively in domestic equities, liquidity could improve substantially.

Institutional investors can provide stable demand for high-quality companies and help make the market more attractive to future issuers.

But institutional investors will not participate simply because the exchange wants them to.

They need attractive companies, reasonable valuations, sufficient liquidity and strong investment opportunities.

The Government Cannot Build the Market Alone

Government policy can create the conditions for a stronger market, but it cannot manufacture genuine investor demand.

Singapore's authorities can improve listing rules, encourage market makers, strengthen infrastructure and support companies.

But ultimately, investors decide where capital goes.

If companies consistently deliver weak returns, investors will go elsewhere regardless of how attractive the exchange's rules are.

This means corporate performance remains the foundation of any successful stock market.

Singapore's 2026 Recovery Is Encouraging but Not Guaranteed

The recent numbers are clearly positive.

Trading activity has increased.

IPO activity has increased.

SGX's financial performance has strengthened.

The exchange has also benefited from greater investor interest in Asian markets.

But one strong year does not prove that Singapore has permanently solved its equity-market problems.

The real test will be whether the momentum continues over several years.

What Singapore Must Do Next

If Singapore wants SGX to become a genuinely stronger global equity market, several priorities should remain at the top of the agenda.

First, attract larger companies. Singapore needs more businesses capable of becoming major publicly traded corporations.

Second, improve liquidity. More trading activity makes the exchange more attractive to both investors and companies.

Third, attract international issuers. SGX should become a natural choice for companies seeking access to Asian and global capital.

Fourth, strengthen the technology sector. A modern stock market needs high-growth technology and digital companies alongside traditional businesses.

Fifth, deepen institutional participation. More professional investors can help create a stronger and more stable market.

The Bigger Opportunity Is Regional

Singapore's greatest advantage may not be its domestic economy.

Its advantage is its position at the centre of one of the world's fastest-growing regions.

If SGX becomes the preferred international market for Southeast Asian companies, its potential market is far larger than Singapore itself.

That could transform the exchange from a relatively small national stock market into a major regional capital market.

Our Perspective

Singapore does not need to ask whether it can build a proper stock market.

It already has one.

The real question is whether Singapore can turn SGX into a market with enough companies, liquidity and international capital to compete for attention with Asia's largest financial centres.

The evidence from 2026 is encouraging.

The increase in listings and trading activity shows that the market is capable of significant growth.

But Singapore should not confuse a recovery with victory.

The hardest part is creating a self-reinforcing ecosystem in which successful companies attract investors, investors attract more companies and greater liquidity attracts even more international capital.

If Singapore can create that cycle, SGX could become much more than a stock exchange for Singaporean companies. It could become one of Asia's most important gateways to capital.

Conclusion

Singapore already possesses the financial infrastructure, regulatory reputation and international connections required to operate a serious global stock exchange.

What it has historically lacked is the same depth of equity-market activity and listing momentum found in some of Asia's larger financial centres.

That may be beginning to change.

SGX's stronger performance in 2026 shows that the exchange can attract more listings and significantly higher trading activity when market conditions are favourable.

But the next stage will be harder.

Singapore must turn temporary momentum into a permanent ecosystem of companies, investors, analysts and liquidity.

Singapore does not need the world's biggest stock market. It needs one of the world's most strategically important — and 2026 could be the beginning of that transformation.