SINGAPORE – Companies will be able to list concurrently in Singapore and the United States by mid-2026 under new laws passed in Parliament on May 7.
The Securities and Futures (Amendment) Bill paves the way for a new Global Listing Board (GLB) initiative aimed at encouraging companies to pursue dual listings on the Singapore Exchange (SGX) and Nasdaq.
Explaining the rationale for the move, Minister of National Development Chee Hong Tat, who is also deputy chairman of the Monetary Authority of Singapore (MAS), said during the debate on the Bill that dual listings can bring benefits for many stakeholders in Singapore’s equities market ecosystem.
He noted that regional companies wanting to list on the GLB will be able to easily access investors on both exchanges and benefit from better brand recognition.
The GLB is also expected to attract more diverse firms to list in Singapore, adding energy and dynamism to the local stock market.
“This in turn creates opportunities for local service providers, including lawyers, accountants and other financial intermediaries,” Mr Chee said.
He added that investors will also gain access to a broader range of high-quality investment opportunities.
Said Mr Chee: “The Bill will position Singapore to capture future opportunities, where dual listings from other reputable jurisdictions, with comparable disclosure requirements and which adhere to international standards, can be facilitated.”
Through the GLB, companies will have a direct pathway to access capital across the Singapore and US markets, with only a single prospectus needed and a harmonised set of rules.
Currently, those who wish to concurrently list on SGX and another overseas exchange may face differing requirements across jurisdictions, and they have to duplicate efforts to meet both sets of rules.
“In this context, ‘same-same but different’ is not as ideal as ‘exactly same-same’, because the former still increases compliance costs,” Mr Chee said.
The new framework will align Singapore’s listing timeline with that of the US.
It will also allow for certain US provisions such as safe harbours for forward-looking statements. Safe harbours refer to legal provisions that protect the company from liability if it meets certain conditions.
If any misconduct occurs in Singapore, MAS and the relevant Singapore authorities will have full discretion to conduct enforcement action, Mr Chee said.
If there is cross-border misconduct, MAS will work with foreign regulators to coordinate action.
Mr Chee said: “The amendments in this Bill represent a considered approach to enhance the competitiveness of Singapore’s equities market, by attracting more quality listings while maintaining our commitment to robust regulatory standards.”
He added that the dual listings framework and the GLB are parts of a broader strategic move to reinforce Singapore’s position as a leading financial centre and a vibrant hub for capital market activities.
During the debate, MPs Saktiandi Supaat (Bishan-Toa Payoh GRC) and Yip Hon Weng (Yio Chu Kang) asked what types of companies the dual-listing board is expected to attract, while Ng Shi Xuan (Sembawang GRC) and Jamus Lim (Sengkang GRC) asked if the market capitalisation threshold of $2 billion for listing on the GLB was too high.
In response, Mr Chee said the choice of the $2 billion threshold reflects SGX’s and Nasdaq’s assessment of the conditions needed for a simultaneous dual listing to succeed.
“We believe that with Asia’s continued growth, there will be a pool of companies that can meet the requirements and benefit from this arrangement,” he said.
He added that there has been “healthy interest from potential issuers” for this collaboration.
Mr Chee also noted that although $2 billion may look like a huge number in Singapore, it is not big on the Nasdaq.
“You will end up becoming a small fish in a very big pond on the Nasdaq, and that’s why I think there’s a certain balance to be struck,” he said.
“If you lower the threshold too much, you may have more companies. But post-listing, some of these companies may have more difficulties.”
In response to concerns on investor protection, Mr Chee said that MAS is consulting on ways to enhance investor recourse avenues under Singapore law.
He added that investors should only make decisions based on a company’s final prospectus.
This framework has also opened up opportunities to work with other exchanges, provided they meet the criteria of having high globally-aligned standards and adequate coverage in terms of liquidity and investors.
Mr Chee agreed with some MPs that there is no certainty if the initiative will succeed, but said that trying at least gives Singapore a shot at it.
“This is our ongoing marathon. We will keep going because we know the competition is intense and we must keep moving forward to stay ahead,” he said.
“There are some areas for improvement, and we will work on these areas to continue to do better. This Bill will build on our solid foundation and further raise Singapore’s standing as a listing venue of choice and provide a vital bridge with regional and global capital markets.”