Money Talks Podcast: ‘Radical ideas’ needed to revitalise the Singapore stock market

Here’s an excerpt from the conversation: 

Andrea Heng:
The financial institutions are highly favoured among Singaporean investors when it comes to what’s listed on the SGX. Now, some analysts allege that it’s the lack of diversity in the SGX that makes it safer than other markets. Seems like a bit of a contradiction here. If it’s safe and it’s stable, how does the lack of diversity actually hinder us more than help us? 

Yang Eu Jin: 
We’re not a very diverse market. Certainly in terms of the value of the stocks, we have about 600 over listed companies. Of course, they come from a variety of sectors, but many of them are very small. So the big boys (are) overrepresented in terms of the financial sector. Yes, we are a safe market, and we are a stable market. (If you) compare us to virtually any other market out there, we are a lot more stable.  
 
Andrea:
But are we boring?  

Eu Jin: 
Yes we are, but that’s not a bad thing. There is an investment firm whose motto is “Be boring, make money”.