This proposal by the SEC continues a bipartisan trend dating back to 2020 of scepticism among some US political figures towards international companies listed in the US. This trend could prompt international companies to reassess listing their securities in the US and explore alternative listing locations in response to the proposed changes.
SGX: Liquidity, scale and growth
If these SEC proposals are adopted, there is an opening for the Singapore Exchange (SGX) to position itself as a compelling alternative for Asia-based companies seeking public market access, either at the time of IPO or through a wave of “homecoming” secondary listings by existing Asia Pacific-based companies listed in the US.
SGX is well-positioned to tap into this opportunity. It has an extensive track record as a stable, well-regulated exchange and is home to a strong base of blue-chip and dividend-paying stocks. Now, the SGX may be entering a new phase — one where its (and by extension Singapore’s) economic resilience, regulatory credibility, political neutrality, and proximity to Asia’s growth markets position it as an increasingly attractive destination for high-growth companies across the region.
See also: Singapore’s stock market paradox: A tale of two markets
The 2022 decision by Nio, the Chinese electric vehicle maker, to dual-list on SGX was an early signal of this trend. If global companies reassess their listing options in light of evolving US rules, SGX could see increased interest from growth-oriented firms seeking to diversify their access to public markets.
While a traditional secondary listing like Nio’s could be an option, it might not be good enough due to the challenge of low liquidity. One of the SEC’s proposed changes could require international companies to demonstrate “significant” trading activity on a market outside the US, placing greater emphasis on the liquidity of global markets, and not just a technical second listing by introduction. Liquidity tends to concentrate on markets where it already exists, making it challenging to build in, and unlikely to flow to new locations, all things being equal.
These SEC proposals coincide with the Monetary Authority of Singapore launching its $5 billion Equity Market Development Plan aimed at deepening market participation and encouraging more liquidity and active trading, especially among the small- and mid-cap companies, which make up most of the group of US-listed international companies potentially affected by the SEC proposals.
These structural efforts, combined with ongoing targeted reforms and consistent regulatory stability and credibility, could strengthen SGX’s appeal as a listing destination and liquidity venue and either complement or replace a US listing. This will likely attract both growth-oriented firms seeking capital access and investor engagement, as well as institutional investors who are not only long-term holders but also active participants — key to enhancing market vibrancy.
An opportune moment
SGX could become a leading platform for Asia-based issuers seeking global capital access. Just as Singapore is the most popular Asia Pacific regional headquarters for MNCs, SGX is a natural home for Asia Pacific companies to access the public markets: whether SMEs dealing with generational transition, or venture capital or private equity-backed companies looking to exit.
As global listing dynamics evolve, SGX has a unique opportunity to offer a balanced, trusted, and strategically located alternative access to global public markets, competing regionally while complementing its global presence.
While much will depend on how the SEC’s proposals are ultimately adopted and enforced, SGX is already in a position to benefit from increased regional interest. The key will be turning this interest into sustainable momentum — through deeper market participation, enhanced investor engagement, and a regulatory environment that is attuned to the needs of a vibrant market.
Singapore has the opportunity to lead by building a capital market that doesn’t just welcome the next generation of high-growth companies, but also helps them thrive.
Steven Holm is a counsel at law firm Cooley
