Singapore has produced relatively few home-grown listed multinational corporations (MNCs) that are not government-linked and have scaled into global multinationals, despite hosting one of Asia’s most international exchanges. The majority of homegrown firms remain domestically focused, with limited regional presence and visibility beyond Singapore. Cost of capital is a main constraint. If capital or equity costs 10%, it can only justify projects returning above that threshold. When stronger valuations and broader institutional ownership bring that cost down to 5% to 8%, a much wider range of regional investments becomes viable and accretive. For many Singapore Exchange (SGX)-listed mid-cap companies, conditions have historically been unfavourable, largely due to structural factors. Free float is another constraint. SGX historically required only 10% of issued shares to be held by public investors, compared with 25% on Bursa Malaysia and the Hong Kong Stock Exchange. Tightly held share registers lead to thin trading volumes. That discourages institutional participation, which in turn limits analyst coverage and keeps valuations compressed. Singapore Real Estate Investment Trusts (S-REITs) are structured to attract institutional investors, feature higher free floats at listing by design, and generally have lower costs of capital. Today, over 90% of S-REITs own assets outside Singapore, with an average dividend yield of 6.9%, making them popular among retail investors. Smaller listed companies tend to be under-researched and often receive limited analyst coverage due to low institutional participation. Investors are naturally reluctant to invest in businesses they do not fully understand, reinforcing a decades-long cycle of weak liquidity and limited interest. Case studies of regional expansion Some SGX-listed companies have expanded regionally by leveraging capital market access. iFAST Corporation, listed on the SGX in 2014, raised SGD105 million ($82.1 million) to complete the SGD 74 million ($57.8 million) acquisition of BFC Bank in the United Kingdom, obtaining a banking licence. Food Empire, listed at an initial valuation of SGD 45 million ($35 million), has expanded across Europe and Asia, with manufacturing facilities in multiple markets. Other companies, including CSE Global, ValueMax Group and MoneyMax have also pursued regional expansion. Singapore has limited weight in global and regional equity benchmarks, which can limit allocation by international fund managers. Additional barriers include tightly held share registers, thin secondary liquidity and limited analyst coverage. An analysis of SGX’s 613 listed companies found that only 68 meet both the profitability and market capitalisation thresholds required by most institutional mandates. The implication is that early investment in governance, transparency and institutional engagement may provide a foundation for companies to respond when capital-raising opportunities arise. Market improvements Conditions in Singapore’s equity market have improved compared with previous years. Roughly 60 to 70 SGX-listed companies consistently see more than SGD 1 million ($781,851) in daily trading value, up significantly from just a few years ago. The MAS Equity Market Development Programme has expanded to SGD 6.5 billion ($5.0 billion), channelling institutional capital into the small- and mid-cap segments. The SGX's dual listing bridge with Nasdaq could introduce a new pool of international investors to Singapore-linked companies. These are positive steps, but they primarily address demand. Investor interest is growing, and participation has broadened beyond Equity Market Development Programme (EQDP)-mandated managers, with retail investors entering the market ahead of institutional capital. The harder challenge is on the supply side. A mid-sized Singapore company looking to raise SGD 50 to 100 million ($38.8 million to $77.7 million) today has more options from private equity and venture capital to private credit, all without the disclosure obligations and compliance costs of a public listing. For public markets to stay relevant, they must offer advantages such as liquidity, transparency, and a valuation currency that supports long-term regional expansion. What companies need to do Better market conditions come with bigger obligations; the first is disciplined capital allocation. When a company raises money from public markets, it makes an unspoken commitment to deploy it purposefully. For example, Centurion Corporation has allocated capital into higher-growth segments such as build-to-rent accommodation. The second is proactive communication. Companies do not need to share internal projections, but they should convey clearly their business direction. Consistency in messaging over time is also important for investors to track progress against previously communicated priorities. Above all, investors value clarity on the company’s strategic direction and transparency as its plans evolve. The third is accountability. When targets are missed or plans pivot, companies should explain the rationale. Investors can accept setbacks but what erodes trust, and ultimately valuation, is silence. Firms that consciously uphold these values will consistently attract better institutional interest than those that do not. In the last two years, Singapore’s capital market has shown signs of improvement, supported by regulatory initiatives and broader investor participation. Sustaining this progress will depend on whether companies strengthen governance, improve transparency, and engage consistently with institutional capital. Jason Saw is the group head of investment banking at CGS International (CGSI), a financial services firm in Asia providing investment and financial solutions to diverse clients.
