FTSE Russell Convenes | Episode 4, Asean

Exciting Developments in Singapore Markets

June 1, 2023

Following a difficult year for the global financial markets in 2022, what is the outlook for Singapore in 2023, and how are exchanges providing support through this period of uncertainty? In this episode of FTSE Russell Convenes ASEAN, Loh Boon Chye, Chief Executive Officer of Singapore Exchange (SGX Group), discusses his thoughts on the year ahead as well as how ecosystem-building has facilitated significant developments in Singaporean markets, how global investors can access Singapore and ASEAN markets and how retail and institutional participation in Singapore has grown.

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I think, for investors in any scenario, markets are always cyclical.There will be value to be found in the markets.Key is to be nimble and have effective risk management tools.Welcome.It's wonderful to have you here in person.Thank you. Good to be here.So what are some recent developments in your marketthat international investors should take note of?There have been quite a number of initiatives that we've done.Indonesian exchanges are all about ecosystem building.So we have over the years and hence our regional retail outreach.We have also brought in and onboardedmarket makers and liquidity providers.And at the same time, enhance our research offeringand also the companies outreach.Most significantly last year, two funds were set upby different agenciesto anchor companies to list in Singapore.And we have since had very good conversations with companiesand also seen companies doing secondary listing on the Singapore exchange.How has retail and institutional participationgrown in your market or are ASEAN as a whole?If we look at the inflow of EUM statistics,the numbers forlast year was over $400 billion of inflow.That clearly signifies the institutional money.At the same time, we've seen increase retail participation.More importantly, more of the online brokersare setting up businesses in Singapore, and part of the ASEAN cooperationalso means we could reach out to the regional brokers within ASEANto promote and enhance liquidity in each other's markets.What are the channels for global investorsto access ASEAN markets and how do you see that changing?The ASEAN exchanges on its own provides directand liquid access to each of our respective markets.For the Singapore Exchange,we offer a single point, multi-asset platformround the clock liquidity, and that also cuts across different assetclasses from equities, to fixed incomecommodities and currencies.So that complements very well what each individual ASEANexchange or market has for investors that are dollar basedlooking for hot currency offshore access into these markets.SGX complements those direct access efficiently and effectively.And we know there's been a huge amount of activity in that area.What is your outlook for 2023?That is a difficult question.I must say clearly 2022.We have seen a lot.The year started off with a benign outlook and obviously,unfortunately we have the war in Ukraine, inflation and energy prices.And then we had the crypto market undergoing a correctionin the middle of the year.And now markets are having to adjust to higher rates into 2023and the risks of a recession in 2023.That said, I think, for investors in any scenario, markets are always cyclical.There will be value to be found in the markets.Key is to be nimble and have effective risk management tools.And I think exchanges can play a role for investors in that regard.It was fantastic to see you here today.Thank you so much. Thank you.

November, 3, 2022 at ASEAN Investment Summit

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