[Asia Economy Reporter Kim Suhwan] The Singapore government is creating a large-scale fund to boost its domestic stock market.
On the 17th, the Singapore government announced that it will establish a government-led fund worth 1.1 billion USD (approximately 1.3 trillion KRW) to support the listing of domestic companies on the stock market and assist in capital raising.
According to the government, this fund will be established under the leadership of Temasek, Singapore's government investment company.
Additionally, the authorities plan to implement measures to reduce the costs of companies going public, and the Singapore Exchange will support private capital raising before initial public offerings (IPOs).
Earlier this month, the Singapore Exchange also decided to allow backdoor listings through Special Purpose Acquisition Companies (SPACs) to stimulate the capital market.
The Singapore government aims to boost its stock market and promote economic recovery through these plans.
This is reportedly because the government judged that the scale of new IPOs on the Singapore Exchange is relatively low compared to other Asian regions.
According to CNBC, the Hong Kong Exchange completed 46 IPOs in the first half of this year, raising 27.4 billion USD (approximately 32 trillion KRW). In contrast, the Singapore Exchange had only 3 new IPOs, with total capital raised amounting to about 200 million USD (approximately 230 billion KRW).
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