Singapore is at an inflection point in its capital market development. Speaking at the Singapore Institute of Directors’ (SID) Directors Conference on 12 September 2025, Mr. Chee Hong Tat, Minister for National Development and Deputy Chairman of the Monetary Authority of Singapore (MAS), outlined a bold agenda for strengthening corporate governance, enhancing equity market vibrancy, and empowering company boards to take a more proactive role in unlocking shareholder value.
A Resilient but Challenged Market
Minister Chee began by noting the resilience of Singapore’s equities market in recent months. Retail and institutional investor participation has shown signs of recovery, offering local firms wider access to capital for growth and innovation. This, in turn, has fueled job creation: the financial services sector now employs close to 200,000 workers, of which more than 80% are locals, and remains the highest-paying industry for full-time employees.
However, global uncertainty persists. Supply chain disruptions, inflationary pressures, and shifting geopolitical dynamics continue to weigh on valuations. In such an environment, Mr. Chee argued, Singapore’s companies cannot rely solely on past performance or macro tailwinds. They must embrace transformation at the leadership level to remain competitive.
Policy Measures: A Dual-Sided Approach
Singapore’s regulators have already introduced structural reforms to support both the demand and supply sides of the market.
- Equity Market Development Programme (EMDP): A S$5 billion initiative launched in 2024 to strengthen local fund management and deepen trading liquidity, especially in small- and mid-cap stocks. The first batch of asset managers was appointed in July 2025, with more to follow in Q4.
- Quality Listings Pipeline: Efforts are underway to attract high-caliber companies across different stages of growth, supported by targeted incentives and a streamlined regulatory framework.
- Balanced Regulation: MAS has emphasized maintaining Singapore’s reputation for strong corporate governance and transparency while removing frictions in listing and disclosure processes.
While these moves create momentum, Mr. Chee stressed that policy alone is insufficient. To improve valuations and liquidity, directors and corporate leaders themselves must become catalysts for change.
Transformational Directorship: The Next Frontier
The conference theme — Transformational Directorship — captures the shift needed in Singapore’s corporate governance landscape. According to Mr. Chee, three pillars underpin this transformation: Capabilities, Communications, and Communities.
1. Capabilities – Building Strategic Excellence
Boards and C-suites must go beyond financial management and develop strategic foresight. This includes:
- Focusing on long-term capital allocation and productivity-enhancing transformation.
- Treating IPOs not as an endpoint but as a gateway to further growth and shareholder returns.
- Training directors, CFOs, and investor relations teams to engage stakeholders effectively.
As Mr. Chee observed, leaders must “tell the growth story”, not just present earnings. CEOs should embody their brand vision in the same way that Bill Gates shaped Microsoft, Jensen Huang elevated NVIDIA, or Piyush Gupta positioned DBS.
MAS also intends to support training investments in strategic communication and investor engagement, working closely with SID and industry partners.
2. Communications – Amplifying Market Presence
Singapore companies often rely on substance over storytelling. While substance is crucial, investors now demand clarity, transparency, and forward-looking narratives.
Key initiatives include:
- Encouraging regular investor engagement beyond the annual AGM.
- Supporting disclosures on dividend policies and capital management.
- Partnering with the Stewardship Asia Centre (SAC) to study the link between engagement quality and valuations. Preliminary findings show 9 in 10 institutional investors believe clear communication of long-term strategy directly impacts company valuations.
Smaller firms, often overlooked, will receive visibility boosts through SGX roadshows, trade fairs, and media features. MAS has also enhanced the Grant for Equity Market Singapore (GEMS) programme to encourage more analyst coverage of under-researched companies.
3. Communities – Fostering Collaborative Networks
Transformation thrives in ecosystems, not silos. Drawing an analogy to the Homebrew Computer Club in Silicon Valley — where innovators like Steve Jobs once exchanged ideas — Mr. Chee called for communities of practice among Singapore’s corporate leaders.
Upcoming initiatives include:
- SID Chairpersons Guild (launching November 2025): A peer-learning platform for board chairs, supported by partners such as UBS and McKinsey.
- International and Local Peer Sharing: Bringing global directors and successful local leaders together to share best practices in value creation.
- New SGX Indices: Expanding beyond the Straits Times Index (STI) to spotlight medium-sized listed firms and potentially create benchmarks for governance and sustainability performance.
These networks will create structured opportunities for directors, management teams, and investors to exchange insights, raising the overall sophistication of Singapore’s market ecosystem.
Durian Economics: A Fresh Analogy
In one of the speech’s lighter moments, Minister Chee employed a durian analogy to explain modern investor expectations. Just as connoisseurs distinguish between varieties like Mao Shan Wang and Black Gold, investors today differentiate between companies not only by earnings, but by growth potential, strategy, and transparency.
This metaphor underscored the need for directors to offer investors more than strong balance sheets — they must present compelling future narratives that justify valuations.
Market Implications
The speech highlights several implications for Singapore’s capital markets:
- Valuation Gap – Local firms must close the gap between operational performance and market recognition by embracing stronger communication strategies.
- Liquidity Enhancement – The S$5 billion EMDP is a bold attempt to catalyze institutional interest, but its success hinges on complementary corporate actions.
- Governance Premium – Singapore’s reputation for governance remains a key asset. Enhancing disclosure and board capabilities can reinforce investor trust.
- Regional Role – By inviting directors from beyond Singapore, MAS signals its intent to position Singapore as a regional hub for corporate excellence and capital raising.
Conclusion
Mr. Chee’s call for Transformational Directorship represents more than a governance update — it is a vision for the next phase of Singapore’s capital market growth. By equipping boards with the right capabilities, encouraging transparent communication, and nurturing collaborative communities, Singapore aims to unlock latent shareholder value and attract deeper investor interest.
As global uncertainties persist, the strength of Singapore’s market will depend not only on sound policy but on the leadership of its companies. Directors, investors, and regulators must work in concert to ensure Singapore’s equities market continues to thrive in a competitive world.
References
- Monetary Authority of Singapore, Speech by Mr. Chee Hong Tat at the SID Directors Conference, 12 Sept 2025 [MAS]
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