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Published on November 28, 2007

Singapore's new market for regional start-up companies should spur other exchanges such as Thailand's to restructure, allowing them to compete for new listings.

Greater market capitalisation means better competitiveness for stock exchanges, and relaxing listing regulations is the key to success.

Fund managers are today looking to spread their money around the world, rather than keep it in one particular market.

On Monday, the Singapore Exchange unveiled its new start-up board aimed at drawing fast-growing companies in the region to list here.

The new board, which replaces the Sesdaq next month, is called Catalist and is modelled after London's Alternative Investment Market.

The board will see listings fast-tracked in just six weeks - compared with the normal 12 to 17 - and allows "sponsor" companies to oversee listings, instead of regulators.

Exchange chief executive Heieh Fu Hua said more than 100 companies from around Asia were listed on the Sesdaq and would automatically be transferred to Catalist.

The low number of new listings in Thailand this year is a worry for the Stock Exchange of Thailand. The bourse has established a task force to look at competitiveness, but it is yet to report.

This year, 10 companies with a total market capitalisation of Bt104.42 billion have sought listing on the main board and the Market for Alternative Investment, the board for smaller companies.

This is in spite of corporate income-tax breaks for listed companies expiring at the end of the year.

Private companies complain the exchange's listing regulations are too complicated and disclosure demands too exacting.

This discourages them from seeking listing.

Change on the exchange moves at a snail's pace.

Thailand is one of just four exchanges in the world yet to demutualise.

The others are Vietnam, Indonesia and Israel.

Market regulators have done nothing to aggressively promote listing in the Kingdom and appear to be waiting for a new government to make the first move.

Siriporn Chanjindamanee

 The Nation