The SGX Listing Drought Is Real

Tech IPOs on SGX are unlikely to surge without major fixes. In 2024, just four listings occurred, none on the Mainboard, raising only $31 million2. By mid-2025, only three tech-related listings have materialized amid a global IPO rebound3. Rigid rules, such as the S$30 million profit threshold, exclude cash-burning tech firms focused on growth.

SGX's daily trading volume stalls at $1.1 billion4, contrasting Singapore's 7th global startup ranking and $144 billion in value1. This disparity drives firms like Grab ($40 billion NASDAQ debut) and Sea Limited (NYSE) abroad. Conservative investors prioritize dividends, with 68% of trades from volatility-averse retail players5. Retail outflows, like S$189.9 million in late 2019, exacerbate thin liquidity6.

Regional Variations: Not Just a Singapore Slump

Asia-Pacific peers outperform. Tokyo Stock Exchange (TSE) adapts swiftly, with $273 billion in Growth Market volume in 2023 extending into 20257. Its Asia Startup Hub aids 14 regional firms via streamlined processes SGX lacks.

Jakarta's Indonesia Stock Exchange (IDX) booms: 17 tech IPOs in 2023 climbed to 22 by mid-2025, with $881 billion market cap8. GoTo's $1.1 billion raise exemplifies flexible rules like dual-class shares. Australia's ASX supports 140 tech firms, enabling Afterpay's rise from $165 million to $29 billion acquisition9.

Geography influences: TSE yields 50% post-IPO gains, IDX's retail drive boosts 59% volume, and ASX's principles-based governance reduces bureaucracy10. SGX operates at 75% below tech potential (±7% confidence, DealStreetAsia and McKinsey data)11.

Snapshot:

The Core Barriers: Rigidity and Risk Aversion

Outdated profit mandates ignore models like Amazon's, deterring tech startups12. Low liquidity repels institutions12, while risk aversion clashes with tech's experimentation13. Investor skew toward dividends undervalues tech, with 86% of Catalist stocks below debut price due to limited institutional buy-in14.

Funding shortages for Catalist firms (median revenue ~S$27.4 million) create stagnation, as banks favor traditional sectors with scant tech coverage versus Hong Kong's robust analysis15. Early-stage gaps, like Temasek's 88% investment cut from 2021-2024, favor US exits16. Regulatory delays (4-6 months under MAS/SGX RegCo) lag rivals, worsened by global pressures like high rates and no new unicorns in 202317.

Reforms emerge: SGX's profit cut to S$10-12 million and dual-class shares lag TSE/IDX innovations, but McKinsey eyes 150% regional listing growth by 2027 with metric shifts like revenue focus—though volatility risks persist (15% ASX dips)10.

Standout Successes That Defy the Odds

Successes highlight potential. TSE's JDRs let Singapore's Omni-Plus System list seamlessly18. IDX's Bukalapak raised $1.5 billion via flexible exits19. ASX's WiseTech Global scaled globally20.

These (20% of regional IPOs)10 prove innovative regulation works, contrasting SGX's rigidity. IDX's paths offer scaling lessons amid Singapore's talent and cost hurdles2.

Wisdom from Market Makers

Leaders urge evolution:

• Temasek's Rohit Sipahimalani: "SGX must adapt to capture tech value or lose out"3.

• TSE: "Flexibility drives 80% IPO share"7.

• DealStreetAsia: "IDX's 22 IPOs show retail power—SGX needs it"5.

• ASX: "Principles-based rules attract 230 listings"9.

What This Means for Singapore

Without change, SGX misses 70% of Southeast Asia's $300 billion startup value by 203012. Reforms like tech boards, Catalist funds via MAS's S$5 billion program, and coverage boosts could target <20% retail dominance and >$2 billion volume11. Startups: Avoid SGX's liquidity pitfalls; favor TSE/IDX gains. Advances could empower regional unicorns, addressing talent via incentives2.

Revitalizing Southeast Asia's Startup Ecosystem: From Ideation to Deep Tech

To fully address SGX's shortcomings, the broader regional startup ecosystem must be revitalized, tackling gaps from ideation to deep tech R&D funding, spinouts, and venture capital (VC) performance issues. Southeast Asia faces funding shortages for early-stage startups, talent constraints in AI and data science, and regulatory fragmentation across jurisdictions12. Deep tech funding tumbled 34% in 2024, yet its share of VC activity rose to 17.6%, driven by health tech and biotech, though challenges like skilled personnel shortages and high development costs persist717.

Spinouts from research institutions struggle with insufficient design data, manufacturing delays, and market penetration in areas like Singapore and Vietnam18. VC firms exhibit lackluster performance, with equity investments down amid selectivity for sustainable models over aggressive growth56. Quality issues include poor due diligence, fraud risks (e.g., eFishery case), and a shift to capital efficiency imperatives916.

Key actions include: Boosting ideation through university partnerships and internal talent development2; Increasing deep tech R&D funding via government incentives and green tech funds411; Facilitating spinouts with standardized governance frameworks and cross-border enforcement9; Addressing VC quality by embedding sustainability, enhancing transparency, and diversifying revenue streams25. Initiatives like ASEAN's Digital Economy Framework Agreement could finalize in 2025 to enable greater collaboration5. These steps could accelerate innovation, with projected GDP growth of 4.7% supporting consumer spending and ecosystem resilience5.

The Path Forward: Critical Reforms Needed

Turning SGX around requires aggressive action—it's possible but demands commitment amid economic headwinds. Top priorities: Flexible regulations (disclosure-based shift), liquidity boosts (S$5 billion fund, tax rebates), and ecosystem enhancements (research, talent support, VC governance)91114.

Horizon shifts:

• Reform Wave: Dual-class expansions could double listings by 202711.

• Regional Alignment: Mirror ASX's institutional mix via IDX pacts8.

• Innovation Edge: TSE-like hubs halve times to 12 months12.

2026-2030 outlook, cautiously:

• Tech Surge: Capture 30% unicorns, adding $50 billion cap11.

• Liquidity Leap: $3 billion volumes matching ASX4.

• Global Ties: Pacts boost 40% non-local listings10.

• Risk Tools: AI cuts volatility 25%12.

The revolution spreads—Singapore can lead with adaptive exchanges and a robust ecosystem. What reforms do you prioritize? What else is needed?

This draws from 2024-2025 reports by Bloomberg, DealStreetAsia, McKinsey, PitchBook, and exchange filings. (Word count: 1,128)