Commentary: Liquidity fix for small and mid-caps on SGX requires more to be done

Former editor and financial journalist Ven Sreenivasan argues that while Singapore Exchange chairman Koh Boon Hwee is correct that small and mid-cap companies should take responsibility for boosting their own liquidity through better investor relations and communications, the exchange itself can do more to improve liquidity for these firms.

Despite the broader gains in the local market, many SMEs continue to experience thin trading and poor liquidity, which hinders their ability to raise capital or engage in meaningful mergers and acquisitions. While the SGX has taken steps to revitalize the market through initiatives like the Equity Market Development Programme (EQDP), the impact on secondary trading and liquidity has been limited so far.

Brief written by urgent.news from CNA - Singapore's own syndicated text. Machine-written — may contain errors; check the original before relying on it.