Singapore’s Nasdaq Connection Sparks Interest, but threshold and liquidity may limit take-up 

Dubbed as the initiative that will inject new life into the Singapore Exchange (SGX), this new platform to list on both SGX and Nasdaq attracted instant interest. 

In an attempt to enhance its prominence in international capital markets, the Government of Singapore has launched an innovative platform that connects its stock exchange with Nasdaq, which is one of the top technologically driven stock exchanges in the entire world. The move is aimed at revamping the Singapore Stock Exchange (SGX) and inducing top-performing companies to be listed in it through a dual listing system, which has seen an initial response. 

At its essence, the new initiative involves the introduction of a Global Listing Board – a regulatory platform through which companies will be able to list on SGX and Nasdaq within one prospectus. Scheduled to be launched by mid-2026, this platform is a bold experiment in standardising regulations to remove duplications in jurisdictions. Nasdaq itself has declared it to be “the first of its kind,” which in turn signifies its potential to create new investment opportunities for ambitious companies.

As part of a broader strategic play to mark its presence within global markets, Singapore recently launched a new initiative that links its stock markets to one of the world’s preeminent technology exchanges, Nasdaq. Dubbed as the initiative that will inject new life within the Singapore Exchange (SGX), this new platform to list on both SGX and Nasdaq attracted instant interest. 

Dual listings have long been a vehicle for issuers to tap into diverse investor bases, enhance visibility and bolster liquidity. However, traditional cross-border listings are complex, involving separate regulatory filings and compliance obligations in each market. Singapore’s approach tackles this head-on by allowing a single submission to be recognised by both SGX and Nasdaq, thereby simplifying the process. 

This initiative is a continuation of the measures taken by the Monetary Authority of Singapore (MAS) and SGX to revive the local equities market. Over the last year, regulators have implemented various programmes such as tax incentives, funding schemes and market structure enhancements to foster a more vibrant trading environment. Within this larger framework, the dual/, listing bridge plays an essential role in Singapore’s game plan to challenge the regional competitors, especially Hong Kong, which has been the leading name in Asian listings by far. 

The announcement with caution has been recognised by the issuers in Southeast Asia. Local technology companies like Carro, Carsome, Funding Societies and Hummingbird Bioscience have generally agreed that the idea of a dual, listing is a positive move, especially in solving the intricacies which have served as a major deterrent to cross- border public offerings. Numerous startups that are considering US capital admit that the option of cross-listing via Singapore might provide them with a more straightforward and consolidated access to international investors. 

Still, the extremely high valuation bar of the scheme, the lowest market capitalisation has to be S$2 billion (about USD 1.55 billion), is likely to drastically reduce the number of companies that could be eligible. Market watchers point out that there are only a few Southeast Asian companies at the moment that can satisfy this tough criterion, and there might be only a couple more close to it. Therefore, although the Global Listing Board could be a draw for mature growth companies, it naturally leaves out a very large number of up -and-coming firms and early-stage startups that would be most in need of getting easier access to international capital. 

Singapore’s Nasdaq linkage is a futuristic endeavour to connect local capital markets with international financial ecosystems. Even though it attracted a good number of potential issuers and reflects a high level of ambition from institutions, eventually, its success will depend on market forces that are beyond the regulatory framework. Currently, the project is a proof of Singapore’s zeal for innovation, yet it points out that the development of a market structure is a long journey.