How the Value Unlock push will lift the market

·26 min·2 clips

SGX's Chan Kam Kong reveals how Japan and Korea saw 40% index gains after launching similar value-unlock schemes.

The episode begins with host Ben Paul introducing the Value Unlock Program as a key initiative from the Equities Market Review Group to revitalize Singapore's stock market. He sets the context by mentioning previous episodes on related topics like the dual listing bridge and Equity Market Development Program. Guest Chan Kam Kong from SGX joins to unpack the program. Kong defines Value Unlock as a movement to heighten shareholder value focus in boardrooms. He highlights that the largest opportunity lies with existing listed companies, not just IPOs, using the Next 50 Index as an example where re-rating could unlock $23 billion in market cap. Kong references Japan and Korea's experiences, where similar schemes led to sustained 40% index gains. He outlines the program's structure, targeting demand, supply, and regulations to create a virtuous cycle. The discussion shifts to the grant specifics: $30 million from MAS for Equip and Elevate Grants, funding training and consultant services. Kong explains that companies must demonstrate growth potential and a compelling equity story to qualify. He reveals strong initial response, with 120 companies engaged and 30 signed up for Equip. The grant disbursement process is detailed, requiring companies to achieve KPIs like investor engagement before reimbursement. Kong addresses market optimism, noting the STI's 28.8% return last year and increased trading activity, urging companies to leverage this momentum. He compares Singapore's carrot-based approach to Japan and Korea's stick methods, emphasizing partnership over discipline. Kong discusses potential refinements and the role of ecosystem partners in providing feedback. Success metrics include activity-based outputs and long-term outcomes like ROE and price-to-book improvements. He cites examples like Singtel and Capitaland, which started multi-year journeys in 2022. Kong identifies the construction sector as a beneficiary due to structural tailwinds from projects like T5 and MBS. The episode concludes with Kong emphasizing the long-term nature of value unlocking and the need for sustained momentum.

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A measured account of how Singapore's Value Unlocked program turns investor engagement into corporate action.

Singapore's Value Unlocked program receives a steady, practical treatment in this edition of Mark to Market. The episode moves from the policy ambition of stronger investor engagement and clearer attention to shareholder value creation into the harder question of how companies…

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You want to see how Singapore's Value Unlocked program is trying to turn shareholder value creation into a more active corporate habit.

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