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SINGAPORE \u2014<\/strong> The Singapore Exchange (SGX) heads into the final stretch of 2025 with something it hasn\u2019t consistently enjoyed in recent years: momentum that\u2019s visible in both price action and participation<\/strong>\u2014and a policy-and-product agenda that\u2019s clearly designed to make that momentum harder to reverse.<\/p>\n With seven trading days left in 2025<\/strong>, the Straits Times Index (STI)<\/strong> has delivered a year-to-date price return of 20.7% (as of Dec 18)<\/strong>, while Singapore REITs (S-REITs)<\/strong> are up 9%<\/strong> over the same period. Meanwhile, 10 S-REITs have attracted more than S$1 billion in combined net retail inflows<\/strong> year to date\u2014an attention-grabbing datapoint in a market where retail participation is increasingly being treated as a feature, not a footnote. [1]<\/sup><\/a><\/p>\n This late-year tape isn\u2019t happening in a vacuum. Over recent weeks, the SGX ecosystem has been hit by a concentrated burst of market-structure upgrades, listing rule reforms, cross-border connectivity pushes, and new product launches<\/strong>\u2014including a move into institutional crypto perpetual futures<\/strong>\u2014all while banks and strategists publish 2026 outlooks<\/strong> that frame Singapore as a potential beneficiary of a broader ASEAN re-rating.<\/p>\n What follows is a comprehensive, publication-ready digest of the news, forecasts, and analyst takes shaping SGX as of Dec 21, 2025<\/strong>.<\/p>\n If you want a quick pulse check on whether a market revival is real, you look for a boring trio: turnover, breadth, and who\u2019s actually showing up<\/strong>. November\u2019s exchange data gave SGX plenty to point at.<\/p>\n SGX reported total securities market turnover value rising 18% year on year to S$35.5 billion in November<\/strong>, with turnover volume up 4% to 29.3 billion shares<\/strong>\u2014an increase it attributed to interest in index stocks and REITs<\/strong>, with retail investors \u201cparticularly keen\u201d on the latter. [2]<\/sup><\/a><\/p>\n On the index side, the STI gained 2.2% month-on-month in November<\/strong>, pushing year-to-date gains to 19% and total returns to 25%<\/strong> (as cited in the same SGX update). The index also reached a new peak of 4,575.91 on Nov 13<\/strong>\u2014a psychologically important milestone for a market that has spent years being described (sometimes unfairly, sometimes accurately) as \u201csleepy.\u201d [3]<\/sup><\/a><\/p>\n REITs, meanwhile, are doing what REITs do best in Singapore when conditions cooperate: become the market\u2019s \u201cincome gravity.\u201d<\/strong><\/p>\n A Dec 21 analysis highlighted that the 10 S-REITs with the largest net retail inflows<\/strong> year-to-date were:<\/p>\n Together, they accounted for more than S$1 billion<\/strong> in combined inflows, with many concentrated in industrial<\/strong> and data centre<\/strong> segments\u2014areas often framed as structurally supported (logistics\/industrial resilience, and data centres as AI-era infrastructure). [4]<\/sup><\/a><\/p>\n From a valuation lens, the same analysis noted the iEdge S-REIT Index<\/strong> trading around a 0.95 price-to-book<\/strong>, below its historical average band, with an average distribution yield of about 5%<\/strong>\u2014a neat summary of why the sector continues to magnetize capital whenever rate fears cool even slightly. [5]<\/sup><\/a><\/p>\n A rally is nice. A rally with a stated public-policy objective behind it<\/strong> is\u2026 rarer. Singapore has been unusually explicit about wanting a stronger equities market, and one of the most discussed levers late in 2025 is the S$30 million \u201cValue Unlock\u201d initiative<\/strong>.<\/p>\n Market watchers have framed the programme as a practical attempt to fix a chronic SGX problem: good businesses that don\u2019t get rewarded with good multiples<\/strong>\u2014often because of thin liquidity, limited research coverage, and weak investor communication.<\/p>\n As of Dec 18<\/strong>, The Straits Times reported 614 companies listed on SGX\u2019s Mainboard and Catalist<\/strong>, and found 353 (57%) trading below book value<\/strong> (price-to-book under 1). The Value Unlock initiative provides two grants (Equip and Elevate)<\/strong> meant to help listed firms improve corporate strategy, capital optimization, and investor relations\u2014essentially, to help companies tell a clearer story and<\/em> behave in ways markets tend to reward. [6]<\/sup><\/a><\/p>\n This matters for SGX as an institution because valuation gaps feed a nasty loop:<\/p>\n Low multiples \u2192 founders dislike listing \u2192 fewer quality IPOs \u2192 less investor attention \u2192 lower liquidity \u2192 low multiples.<\/p>\n Value Unlock is one attempt to cut into that loop without pretending there\u2019s a single magic switch.<\/p>\n Sometimes the simplest frictions are the most corrosive. One friction SGX is tackling directly: how expensive it can be for retail investors to buy a single board lot<\/strong> of Singapore\u2019s higher-priced blue chips.<\/p>\n SGX has announced plans to reduce board lot size to 10 units from 100 units for securities priced above S$10<\/strong>. The change is intended to boost affordability, broaden participation, and make portfolio diversification easier. [7]<\/sup><\/a><\/p>\n Crucially, it isn\u2019t just ordinary shares. The Business Times reported the smaller board lot would apply across a wide menu: ordinary shares, REITs, business trusts, company warrants, rights, and depository receipts<\/strong>. [8]<\/sup><\/a><\/p>\n The affordability impact can be dramatic. Using DBS as an example cited in the report: a S$53.70 share price implies S$5,300+<\/strong> for a 100-unit lot\u2014but about S$537<\/strong> for a 10-unit lot. [9]<\/sup><\/a><\/p>\n This is the kind of change that won\u2019t make headlines globally, but it can materially affect retail flows<\/strong>, market depth<\/strong>, and ultimately liquidity optics<\/strong>\u2014especially in a market where banks and other heavyweight names dominate index attention.<\/p>\n Another notable reform\u2014less visible than board lots, but arguably more structural\u2014is the plan to modernise the Central Depository (CDP)<\/strong> post-trade custody model.<\/p>\n In remarks published by the Bank for International Settlements (BIS), MAS Deputy Chairman Chee Hong Tat<\/strong> described a shift meant to facilitate wider investor adoption of broker custody accounts<\/strong>, while still leaving retail investors the option to keep CDP direct accounts. He also pointed to potential benefits like enabling a broader offering of services such as portfolio management and fractional trading<\/strong> for SGX securities. [10]<\/sup><\/a><\/p>\n If done well, this kind of post-trade modernization can reduce settlement friction and make it easier for global players\u2014who are used to different custody norms\u2014to participate at scale.<\/p>\n One of the most consequential shifts in 2025 isn\u2019t about a single product or incentive. It\u2019s about how listing suitability and ongoing oversight are approached<\/strong>.<\/p>\n Legal analyses of the reforms highlight a clear direction: less prescriptive rules, more emphasis on disclosure that investors can use<\/strong>\u2014a posture closer to what many \u201cdeveloped market\u201d investors expect.<\/p>\n Key changes described in industry briefings include:<\/p>\n This is part of a larger Singapore story: trying to increase listing attractiveness<\/strong> without eroding market confidence<\/strong>\u2014because nothing kills a capital market faster than a reputation for being either (a) too hard to list on, or (b) too easy to list junk on.<\/p>\n SGX\u2019s big \u201cconnectivity\u201d headline late in 2025 is the planned SGX\u2013Nasdaq dual listing bridge<\/strong>, designed to make simultaneous listings easier<\/strong> by aligning prospectus disclosure frameworks and reducing duplicated paperwork.<\/p>\n Reuters reported the bridge is expected to go live around mid-2026<\/strong> and is aimed at Asian companies with market capitalization of at least S$2 billion<\/strong> and global ambitions\u2014letting issuers potentially use a more unified set of offering documents rather than navigating two fully separate regimes. [14]<\/sup><\/a><\/p>\n The strategic subtext is obvious: Singapore wants to stop being the place where companies grow up and move out<\/em>\u2014with high-growth firms historically choosing deeper US capital pools. The bridge is essentially SGX saying: \u201cFine. Tap the depth\u2014but keep a stake in the region.\u201d<\/p>\n On the M&A front, SGX made news in early December by denying<\/strong> it was considering a bid for Cboe Australia<\/strong>, after reports suggested preliminary talks.<\/p>\n The Straits Times quoted SGX saying the speculation was inaccurate and that SGX Group was not exploring or considering<\/strong> an acquisition of Cboe Australia. The report also noted SGX\u2019s prior history in Australia: an A$8.4 billion bid for ASX in 2011<\/strong> that was blocked on national interest grounds. [15]<\/sup><\/a><\/p>\n Even without a deal, the episode underscores a recurring theme: SGX is continuously evaluated not just as an exchange operator, but as a regional infrastructure player<\/strong>\u2014and acquisition rumours tend to follow infrastructure players around like curious cats.<\/p>\n Exchanges live or die by their plumbing. That\u2019s not poetic\u2014it\u2019s operational reality.<\/p>\n SGX plans to roll out a new trading engine, Iris\u2011ST<\/strong>, in the second half of 2027<\/strong>, and SGX RegCo has been seeking public feedback on rule amendments and functions through Dec 31, 2025<\/strong>. [16]<\/sup><\/a><\/p>\n Among proposals highlighted in the reporting:<\/p>\n This is the kind of infrastructure shift that\u2019s rarely sexy\u2014until the day it prevents a bad trading day from turning into a reputational crisis.<\/p>\n In November, SGX\u2019s derivatives arm stepped further into the digital asset arena by launching bitcoin and ether perpetual futures<\/strong>, with trading set to go live on Nov 24, 2025<\/strong>, according to Reuters. Importantly, the products were positioned for accredited and institutional investors<\/strong>. [19]<\/sup><\/a><\/p>\n A Business Times explainer noted perpetual futures have no expiration date<\/strong>, allowing continuous positioning without the roll mechanics of dated futures. It also cited SGX commentary that perpetual futures account for more than US$187 billion in daily average volumes globally<\/strong>, with Asia a major engine of growth\u2014yet much of that activity historically happening offshore. [20]<\/sup><\/a><\/p>\n Whether this becomes a meaningful revenue driver or a strategically symbolic offering, the intent is clear: SGX is trying to meet institutional demand where it\u2019s going\u2014not where it used to be.<\/p>\n A credible equity market needs replenishment: new listings, not just secondary market churn.<\/p>\n On that front, Reuters reported earlier in 2025 that SGX posted its highest annual earnings since its 2000 listing<\/strong>, with adjusted net profit rising 15.9% to S$609.5 million<\/strong> and revenue up 11.7% to S$1.30 billion<\/strong> for the fiscal year ended June 2025\u2014driven by higher trading volumes across equities, currencies, and commodities. The CEO said more than 30 companies<\/strong> were actively preparing to go public, calling it the strongest IPO pipeline in years. [21]<\/sup><\/a><\/p>\n Reuters also reported SGX declared a final quarterly dividend of 10.5 Singapore cents<\/strong> and plans to increase dividends by 0.25 cents per quarter from FY2026 to FY2028<\/strong>\u2014a shareholder-friendly signal that can matter for how global investors value exchange operators (often treated like infrastructure-with-dividends). [22]<\/sup><\/a><\/p>\n And the pipeline isn\u2019t purely theoretical. Reuters covered UltraGreen.ai\u2019s<\/strong> debut on Dec 3: the medical imaging company raised $400 million<\/strong> in its IPO\u2014described as Singapore\u2019s largest non\u2011REIT IPO in eight years<\/strong>\u2014and its shares rose 8%<\/strong> in early trading. [23]<\/sup><\/a><\/p>\n Looking further out, Reuters reported IOI Properties exploring a Singapore REIT listing in 2027<\/strong> with assets potentially in the S$7\u20138 billion<\/strong> range\u2014another indicator of how Singapore remains central to the regional REIT machine. [24]<\/sup><\/a><\/p>\n Here\u2019s where the forward-looking lenses start to diverge\u2014not wildly, but meaningfully.<\/p>\n DBS\u2019s \u201cSingapore Market Focus (2026 Outlook)\u201d set an end\u20112026 STI target of 4,880<\/strong>, arguing for more moderate gains after 2025\u2019s re-rating. The report also cited an outlook supported by FY26F earnings growth of 8.8%<\/strong>, and highlighted the STI\u2019s FY26F dividend yield of about 4.5%<\/strong> as a continuing attraction\u2014while explicitly balancing that against uncertainties such as slower GDP growth<\/strong>, tariff risks<\/strong>, and the US rate\/volatility<\/strong> outlook. [25]<\/sup><\/a><\/p>\n JPMorgan\u2019s regional outlook (as reported by The Business Times) argued ASEAN equities could be at an inflexion point in 2026, and said Singapore\u2019s rally has a \u201clong way to go.\u201d It pointed to new measures\u2014including the S$5 billion Equity Market Development Programme<\/strong> and the SGX\u2013Nasdaq dual-listing bridge<\/strong>\u2014as catalysts that could lift return on equity to a historical high of 12%<\/strong> (versus 10%<\/strong> currently), and also cited a S$70 billion cash pile<\/strong> beginning to rotate from deposits into equities. [26]<\/sup><\/a><\/p>\n One important anchor: Singapore\u2019s macro trajectory is expected to cool from a very strong 2025. Reuters reported that economists raised the 2025 growth forecast to 4.1%<\/strong>, but projected growth would slow to 2.3% in 2026<\/strong>, with risks including geopolitical tensions and the possibility of an AI-related bubble bursting. [27]<\/sup><\/a><\/p>\n For SGX, slower growth doesn\u2019t automatically mean a weaker exchange\u2014trading and listings can actually rise in volatile or transitional periods\u2014but it does frame the 2026 challenge: turn policy-driven improvements into self-sustaining liquidity and listing quality<\/strong>.<\/p>\n As of Dec 21, 2025, SGX is running a multi-track reboot that can be summarized in one sentence:<\/p>\n Reduce friction, modernize infrastructure, widen access, and make Singapore\u2019s market easier to choose.<\/strong><\/p>\n The most meaningful near-to-medium term checkpoints are:<\/p>\n SGX doesn\u2019t need to become Hong Kong or Nasdaq to \u201cwin.\u201d Its most credible path is more uniquely Singaporean: a trusted, well-regulated, multi-asset hub that\u2019s increasingly interoperable with global capital\u2014while still being investable at home for ordinary people with ordinary-sized wallets.<\/p>\n 1. www.businesstimes.com.sg<\/a>, 2. www.businesstimes.com.sg<\/a>, 3. www.businesstimes.com.sg<\/a>, 4. www.businesstimes.com.sg<\/a>, 5. www.businesstimes.com.sg<\/a>, 6. www.straitstimes.com<\/a>, 7. www.businesstimes.com.sg<\/a>, 8. www.businesstimes.com.sg<\/a>, 9. www.businesstimes.com.sg<\/a>, 10. www.bis.org<\/a>, 11. www.morganlewis.com<\/a>, 12. www.morganlewis.com<\/a>, 13. www.reedsmith.com<\/a>, 14. www.reuters.com<\/a>, 15. www.straitstimes.com<\/a>, 16. www.businesstimes.com.sg<\/a>, 17. www.businesstimes.com.sg<\/a>, 18. www.businesstimes.com.sg<\/a>, 19. www.reuters.com<\/a>, 20. www.businesstimes.com.sg<\/a>, 21. www.reuters.com<\/a>, 22. www.reuters.com<\/a>, 23. www.reuters.com<\/a>, 24. www.reuters.com<\/a>, 25. www.dbs.com<\/a>, 26. www.businesstimes.com.sg<\/a>, 27. www.reuters.com<\/a>, 28. www.bis.org<\/a>, 29. www.reuters.com<\/a>, 30. www.businesstimes.com.sg<\/a>, 31. www.businesstimes.com.sg<\/a><\/p>\n<\/div>\n
\n1) The market picture: stronger turnover, a higher STI, and REITs pulling in retail money<\/h2>\n
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\n2) The policy push: \u201cValue Unlock\u201d grants and a blunt reality\u2014many stocks still trade below book<\/h2>\n
\n3) Lowering the \u201cminimum buy-in\u201d: SGX board lot cut to 10 units for higher-priced stocks<\/h2>\n
\n4) Post-trade plumbing gets an upgrade: modernising CDP custody to enable new services<\/h2>\n
\n5) The rulebook rewrite: SGX RegCo moves toward a more disclosure-based regime<\/h2>\n
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\n6) Cross-border ambition: the SGX\u2013Nasdaq dual listing bridge (mid-2026 target)<\/h2>\n
\n7) \u201cWe\u2019re not buying Cboe Australia\u201d: SGX pushes back on acquisition chatter<\/h2>\n
\n8) Trading technology: Iris\u2011ST \u201cnext-gen\u201d engine planned for 2H 2027, consultation open through Dec 31, 2025<\/h2>\n
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\n9) Product expansion: SGX launches bitcoin and ether perpetual futures\u2014for institutions<\/h2>\n
\n10) Listings and pipeline: signs of life beyond REITs<\/h2>\n
\n11) 2026 forecasts: what strategists expect next for STI and the SGX ecosystem<\/h2>\n
DBS: STI target 4,880 by end\u20112026, with risks clearly flagged<\/h3>\n
JPMorgan: \u201cthe rally has a long way to go,\u201d with policy catalysts front and center<\/h3>\n
Macro backdrop: growth expected to slow in 2026<\/h3>\n
\nWhat to watch next as SGX closes 2025 and enters 2026<\/h2>\n
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References<\/h4>\n