Corporate Governance Case Studies edited by Mak Yuen Teen (CPA Aus)

[karlmarx]

SGX has to make listing on the stock market attractive, yet at the same time, regulate the market. In an ideal situation, SGX will have a long line of companies queuing to list. Since there are more than enough customers, SGX can dictate the terms/rules of listing; the greater the demand for listing, the more onerous its terms/rules. Ditto for attractive men/ladies in the dating game.

But records have shown that there is no long line of companies queuing to list on SGX. If nobody want you, you still dare to dictate terms and set high expectations? Hah!

Some may say that the regular should set the bar high, such that having quality companies will beget more market participants, and hence, even more listings of quality companies. But if you're in the dating game, you will know that this does not make sense. You get a more attractive partner by making yourself more attractive (lose weight, personal grooming, get a good job, etc), not making and enforcing more demands.

The solution lies in making Singapore more attractive as a listing destination. How? Maybe the readers here can share their ideas. But remaining in the 'poor CG -> low market participation -> poor CG' discourse has clearly not brought any progress.