[SINGAPORE] Last month, reports emerged that fast-fashion retailer Shein intends to list in Hong Kong after its initial plan to do so in London was scuttled over concerns about its labour rights track record.
Meanwhile, the Chinese-founded brand made Singapore its global headquarters in 2022. It was seen as a strategic move to broaden its international footprint and appeal to Western regulators and consumers amid growing scrutiny over its ties with China.
The company’s choice to list in Hong Kong, rather than in its adopted base of Singapore, raises the question of whether companies that choose the Republic as their headquarters should also make it their listing base. In Shein’s case, media reports suggest its decision to list in Hong Kong was influenced by Chinese regulatory considerations.
But it is not alone in bypassing Singapore’s capital markets. Other Singapore-based companies, including well-known names such as Sea Group, Grab and Razer, have also chosen foreign exchanges.
Sea Group, which was founded in Singapore, listed on the New York Stock Exchange (NYSE) in 2017. Grab, while founded as MyTeksi in Malaysia, made Singapore its headquarters in 2015 before listing on Nasdaq in 2021. Razer, which is co-headquartered in the US and Singapore, was listed in Hong Kong before it was taken private.
Why companies skip SGX
Many companies are drawn to Singapore for its low corporate taxes, regulatory efficiency and political stability. For businesses, being headquartered in Singapore confers significant legitimacy, both operationally and reputationally, on the international stage.
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But when it comes to the next step in their growth story – going public in this case, the story changes.
A key reason cited by companies for avoiding the Singapore Exchange (SGX) is its relatively lower trading liquidity and smaller investor base. In contrast, larger markets such as the US or Hong Kong offer deeper pools of capital and broader institutional investor interest.
Branding also plays a role. Listing on global exchanges such as the NYSE or Nasdaq helps companies, particularly tech firms, position themselves as international players. It can also boost credibility among global customers and partners.
The case for SGX listings
Still, there are compelling reasons why companies that choose to be headquartered in Singapore should also consider SGX as their listing venue.
First, it strengthens their Singapore identity. If a company sets up its base here to benefit from the country’s reputation, listing on SGX further reinforces that association. It would be good if they could also signal a deeper commitment to the Singapore ecosystem – not just as a business operations hub, but also as a financial centre.
Second, while global exchanges offer liquidity and visibility, Singapore-based companies do not always stand out on those platforms. In large, crowded markets such as the US, these firms may find themselves competing for attention. In contrast, SGX can offer a more focused and supportive investor base, especially for those seeking exposure to South-east Asia.
Moreover, the local bourse’s partnerships with other Asian exchanges, including those in Asean and India, offer companies regional visibility and investor access without the need to go entirely offshore.
SGX should encourage these firms to list here. This will give local investors access to companies they are familiar with, and help to deepen the overall market ecosystem.
Secondary listings can bridge the gap
As for companies that are keen on global capital while retaining strong local roots, dual or secondary listings can provide a practical compromise.
There are already 28 secondary listings on SGX featuring familiar names like hotel chain Mandarin Oriental, food retailer DFI Retail and electric vehicle maker Nio. This demonstrates that SGX can be an effective secondary platform for companies with international ambitions.
There are also ongoing efforts to improve the listing landscape. SGX has rolled out initiatives such as grants to defray listing costs, while the equities market review group under the Monetary Authority of Singapore has proposed measures to attract companies with significant Singapore operations.
These include allowing issuers to reuse their primary listing prospectus with minimal changes for a secondary listing in the city-state, and introducing a 10 per cent tax rebate for new secondary listings involving share issuance. These are encouraging steps that lower administrative and financial barriers.
Making the case clearer
More can still be done to underscore the reputational benefit of listing on SGX, especially to companies that have chosen to brand themselves as Singapore-based.
The Republic’s investment companies such as Temasek can play a stronger role in reinforcing this narrative. Whether through strategic investments or broader market development efforts, their involvement can help strengthen SGX’s positioning as a listing destination of choice.
Singapore’s reputation as a trusted and stable base has already made it the headquarters of choice for many global firms. Extending that trust to the capital markets is a logical next step.
When companies choose to identify with Singapore, they should not overlook the value of anchoring themselves, not just operationally, but also financially in the very market that gives them that reputational edge.
