Singapore Exchange (SGX) Chairman Koh Boon Hwee has urged local investors to support young companies and emerging sectors to ensure the sustainability and growth of Singapore’s economy. In his annual letter to shareholders dated September 29, Koh emphasized that backing startups and novel business models—despite the risk of failure or prolonged losses—is crucial for building a robust pipeline of investible firms and making the local stock market more resilient and self-sufficient.
Koh highlighted that such long-term investor support is essential for enabling the compounding of savings, especially as life expectancy in Singapore continues to rise, necessitating financial planning for longer retirements. He argued that a focus solely on established firms could hinder the development of future industry leaders and major employers.
“Singapore cannot foster a future-ready economy if its default reaction is to address every issue with additional rules,” Koh wrote, stressing that the city-state’s reputation for trust and stability should provide the confidence needed to take calculated risks. He cautioned against creating an overly cautious market environment that stifles innovation and opportunity, even while underscoring the importance of maintaining strict governance standards and cracking down on fraud and misconduct.
The SGX chairman pointed to notable examples such as Amazon, Grab, and Sea, all of which remained unprofitable for years following their initial public offerings (IPOs). He noted that if capital demanded immediate profitability, such companies may never have grown into the market leaders they are today.
Koh also addressed perceptions that Singapore equities are unexciting, describing steadiness and stability as advantageous qualities that support effective wealth compounding. He cited an investor who placed S$100,000 into an STI exchange-traded fund in 2002 and reinvested dividends, resulting in over S$600,000 by June 2026—a total return of 576% and an average annual gain exceeding 8%. This contrasted sharply with the growth of the same amount at a steady 4% annual return, which would have yielded less than S$260,000.
The SGX chairman urged a shift in mindset among Singaporeans to view the stock market not merely as a venue for short-term trading but as a vehicle for preserving purchasing power and supporting retirement. He advocated that younger investors move from saving to ownership and from day trading to long-term investing, focusing on compounding returns and sharing in broader economic growth.
Further, Koh commented on the rise of privatisations and the changing dynamics of Singapore’s capital markets. He suggested that the number of listed companies is no longer a sufficient success measure amid increased private equity and venture capital activity. Instead, he proposed viewing mergers, acquisitions, listings, and privatisations as different phases in a company’s funding lifecycle, with businesses moving between private and public ownership over time.
Looking ahead, Koh called on investors to commit for the long term, companies to actively seek funding to scale their operations, and policymakers to continue strengthening the capital market ecosystem. He underscored that developing Singapore’s financial markets is an investment in the nation’s future competitiveness, resilience, and ability to create opportunities for generations to come.
SGX reported strong financial results for the fiscal year ending June 30, with revenue rising 13.9% to S$1.48 billion and adjusted net profit increasing 24.6% to S$759.5 million. The Straits Times Index also surpassed 5,000 points for the first time in February 2026, while daily average securities trading value exceeded S$2 billion during the last five months of the fiscal year, reflecting growing market activity supported by government and central bank initiatives.