The Singapore Venture & Private Capital Association (SVCA) has put forward a proposal to shake up the Singapore stock market, according to the Financial Times, citing three people familiar with the discussions.
SVCA members include state investment funds GIC and Temasek, local and global venture firms, and buyout groups such as General Atlantic, Warburg Pincus and KKR.
The document, according to the FT, is being reviewed by the Singapore Exchange S68 , which declined to comment.
Other agencies involved include the Economic Development Board, the Monetary Authority of Singapore and the Ministry of Trade and Industry.
Discussions have been going on since the beginning of the year.
According to the FT, the government did not commission the document, but it has appeared as it discusses policy changes with SGX to boost the stock market, which includes attracting companies across the region to list here.
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Among the proposals suggested is mandating stock market participation from the record sums of AUM managed by family offices and other wealth managers that have poured into Singapore in recent years.
There are also suggestions allowing pension and sovereign money to be invested within Singapore. GIC, which manages the reserves, focuses on investments outside Singapore.
"There has been a shift in thinking by the government that this is not just an SGX problem but important to Singapore’s national agenda."
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"Is it possible to be a well-rounded and relevant international financial centre with an anaemic stock market? Perhaps not,” said an industry executive involved with the discussions, according to the FT.
Another person quoted by the FT had “not seen an all-government and industry approach like this since Singapore first decided it wanted to foster a tech and venture capital industry in the late 2000s”.
“For the first time, they seem more willing to consider more maverick, aggressive moves such as investing pension money — which is normal elsewhere but new for Singapore,” the unnamed individual said.
According to the FT, MAS said it “has received the proposals and is reviewing them”.
