Initiatives to Engage Retail Investors and Encourage Greater Participation in Singapore Exchange
Ministry of FinanceSpeakers
Summary
This question concerns the inquiry by Mr Edward Chia Bing Hui regarding initiatives by the Government and Singapore Exchange (SGX) to engage retail investors and encourage market participation. Deputy Prime Minister and Minister for Trade and Industry Gan Kim Yong highlighted educational programmes by MoneySense and the SGX Academy, which reached over 21,000 participants through 180 events last year. He also noted that the Monetary Authority of Singapore’s Research Development Grant Scheme has supported over 900 research reports on 130 companies since 2019. These reports provide retail investors with detailed insights for products like Treasury Bills and Exchange-Traded Funds, facilitating more informed investment decision-making. These efforts aim to strengthen the equities research ecosystem and equip the public with the knowledge to trade confidently on the SGX.
Transcript
2 Mr Edward Chia Bing Hui asked the Prime Minister and Minister for Finance whether there are any initiatives that the Government and the Singapore Exchange (SGX) have implemented to engage retail investors and encourage greater participation in the SGX, including any incentives or educational programmes to boost investor confidence and trading activity.
Mr Gan Kim Yong (for the Prime Minister): Singapore retail investors have access to a diverse range of investment products to meet their investment needs, in addition to cash equities on the Singapore Exchange (SGX). These include Government Bonds and Treasury Bills, mutual funds and listed products, such as equities and Exchange-Traded Funds (ETFs). Additionally, retail investors can access international markets through platforms like robo-advisors and online trading platforms.
The Government and SGX have taken steps to educate and support retail investors in their financial planning and investment decisions. These include retail outreach initiatives and efforts to strengthen the equities market research ecosystem.
In addition, SGX and MoneySense, our national financial education programme, run various investor outreach initiatives to equip the public with basic investing knowledge. These include free talks that cover a spectrum of topics, such as the basics of investing, building passive income and sector-specific investment seminars. Over the last year, the SGX Academy has organised close to 180 such events, benefitting more than 21,000 participants across various demographics. Industry partners, such as the Securities Investors Association (Singapore), also educate and keep retail investors up-to-date with current investment trends.
Besides investor education, MAS introduced a Research Development Grant Scheme in 2019, aimed at supporting and incentivising research houses to improve research coverage of SGX-listed stocks. Since its inception, the grant has supported more than 900 research reports covering over 130 SGX-listed companies. These research reports provide retail investors with detailed analysis and investment insights for informed investment decision-making. The reports are easily accessible on SGX's website and social media channels.