After years of listless primary market activity and a reputation for missing out on some of the region’s sought after listings, the Singapore Exchange ( SGX ) is mounting a quiet but convincing comeback in 2025.

The headline numbers help tell the story. SGX posted its strongest financial performance since listing in 2000, with full-year profit up nearly 16% to S$609.5 million ( US$472.73 million ) and revenue growing 11.7% to S$1.3 billion. Importantly, this upturn wasn’t driven by one-off gains, but broad-based growth across equities cash trading and derivatives.

But the most notable development is in the pipeline. For the first time in years, SGX has what it calls a “robust” line-up of companies actively working towards listings. That includes not just real estate investment trust, or Reits, long Singapore’s equity bread-and-butter, but new names in tech, logistics, energy transition and, almost inevitably, artificial intelligence ( AI )-linked infrastructure.

A case in point was the recent NTT DC Reit, a data centre play backed by Japan’s NTT, that raised US$773 million in July. It wasn’t a significant debut, but was important as it was the largest initial public offering ( IPO ) in Singapore in four years, and part of a broader narrative, namely that infrastructure is in demand, and Singapore is well-positioned to host the next wave of regionally scaled capital.

Geopolitics is lending a hand too. With US-China tensions still simmering, a handful of Chinese healthcare and biotech firms are eyeing SGX as a neutral capital-raising venue. While it is not a surge, it could be a smart pivot for companies looking beyond Hong Kong or the US.

The Monetary Authority of Singapore ( MAS )’ S$5 billion equity market liquidity facility has also turned heads, but the deployment is far from complete.

For years, SGX suffered from thin trading volumes and low retail participation compared with regional rivals. Many international investors saw Singapore equities as stable but sleepy, good for yield, but not for action.

The MAS facility directly tackles this by injecting liquidity into the system, especially in mid-cap and growth stocks, where liquidity gaps are widest. That’s the missing middle SGX has struggled to fulfil.

“Only a fraction of the fund has been tapped,” Malcolm Koo, CGS International Securities ( CGSI )’s Singapore CEO, tells The Asset. “There’s potentially S$4 billion still waiting to enter the system.”

The impact of the equity market liquidity facility on pre-and post-listing liquidity is still yet to be fully realized. “We expect another round of fund manager selections before year-end,” Koo adds. “Once that happens, it could significantly ease trading frictions and bring more institutional investors into mid-cap names.”

What also makes the current IPO cycle different isn’t just the deal volume, it’s the sector mix. More Chinese companies, such as electric vehicle ( EV ) makers and advanced manufacturing groups, are exploring Asean dual listings, and Singapore is on their list.

Chinese EV companies are growing their Southeast Asian business footprint, including building plants in Thailand, Indonesia and Malaysia, and laying the groundwork for future capital raising. “If these players get the right demand visibility and liquidity support,” Koo notes, “dual listings in Singapore could become the logical next step.”

CGSI itself, Koo adds, is currently engaged with several S$1 billion-plus market cap firms exploring either secondary listings or full IPOs in Singapore.

China-Asean capital bridge

Chinese corporates are looking to diversify. The Association of Southeast Asian Nations ( Asean ) region, with more than 650 million people, strong demographics and maturing markets, is extremely attractive; and for these firms, listing in Singapore potentially provides credibility and Asean proximity in one shot. “Their [Chinese corporates’] brand equity is often already established in the region,” Koo states, “and Singapore listings can give them capital to scale.”

In this context, Singapore’s role as a financial bridge between China and Asean may be more practicable now than ever before.

Undervalued emerging markets

While US equities flirt with record highs and European markets normalize, global funds are rotating towards undervalued emerging markets, with Asean among the top destinations.

“July saw the largest monthly fund inflow into Asean and ex-US exposures,” Koo points out. “Markets like Thailand, Indonesia and Malaysia are seeing renewed interest.”

He highlights Thailand’s strong export rebound and Malaysia’s resilient manufacturing base. Even with domestic political noise, the macro story is intact – cheap labour, abundant land and a play on de-risked China supply chains.

“Much of Asean has all four economic engines humming – stable government, strong consumer spending, growing exports and selective government investment,” Koo shares. “It’s a powerful mix.”

Education, liquidity, faster listings

When pushed on what the SGX ecosystem needs most to accelerate listings momentum, Koo notes it’s not just one thing. “We need deeper liquidity, a more streamlined listing process and, importantly, investor education. Better financial education can lift all boats. It increases participation, improves valuations and builds long-term confidence.”

To meet SGX’s growing range of green and sustainability-linked products, Koo says, CGSI has developed an internal environmental, social and governance ( ESG ) advisory arm supporting companies. “It’s not just about ticking disclosure boxes anymore. Investors want measurable, quantifiable integration into strategy.

“There’s a generational shift happening in capital, the next wave of asset owners care deeply about sustainability. All our research reports include ESG metrics now. Investors demand it, not just for compliance, but to understand material risks and opportunities.”

As for the special purpose acquisition companies, or SPACs, that once grabbed headlines, Koo says: “It wasn’t a Singapore issue, we may have just launched too late, the wave had already peaked globally.”

However, while the framework remains in place, he points out, deal flow has dried up. “Private equity funds are no longer under the same exit pressure, and most good companies prefer traditional IPOs again. It’s all about timing. The next wave might still come, but not now.”

Looking ahead

Despite the optimism, headwinds, Koo acknowledges, remain. “Inflation is the biggest threat. If governments can’t control it, domestic consumption suffers.”

Foreign direct investment, a vital growth driver for Asean, Koo adds, hinges on political stability. “Governments across the region must continue spending in the right sectors – manufacturing, digital infrastructure, sustainability – to crowd in private capital.”

Looking ahead, SGX is currently operating in rare alignment – rising investor flows into Asia, a strong dividend story, new economy IPOs and the tailwind from the MAS’ S$5 billion equity market development programme.

Most IPO discussions today, Koo estimates, will potentially come to market 12 to 15 months from now. “That’s why I’m so bullish on the 2026-2027 pipeline – the groundwork is being laid now.”

If this holds, SGX might finally shake off its “quiet market” label and return to centre stage as Southeast Asia’s most international exchange, just in time for what could be a robust 2026.