Deputy business editor Kang Wan Chern wrote a thought-provoking article on what the Singapore Exchange (SGX) can do even before an equities market review group completes its study (SGX needs Nasdaq-level clarity on type of companies it wishes to list, Aug 30).

As someone who was a trading representative for 36 years, I must say her perspectives are refreshing, especially those on the SGX needing to shed its past bad baggage.

The market’s perception on issues has a greater impact than just words. Therefore, if the SGX were to agree with Ms Kang that it should shed that past bad baggage, the market must be able to perceive that it has done so. That in itself is a challenge as it requires the SGX taking difficult but necessary steps.

If investors and stakeholders do not see a paradigm shift in the SGX, they will not return because the regulatory uncertainty of investing in the stock market remains.

Arguably, this regulatory uncertainty is the biggest cause of the poor liquidity in the market leading to undervaluation and delistings, with a knock-on effect of disincentivising new listings.

Tng Kim Bock