In a bold statement, Koh Boon Hwee, chairman of the Singapore Exchange (SGX), insists that retail investors must take charge of their investment journeys as the SGX enhances its liquidity and attracts vibrant start-ups from Southeast Asia.

In his recent letter to shareholders for the 2025 financial year, Koh emphasized that shielding investors from risk is not the answer. Instead, he advocates for empowering them by providing transparency rather than attempting to eliminate risks altogether.

"Protecting retail investors isn't about removing risk; it's about preparing them to understand and navigate it," he declared. This philosophy comes in light of recommendations from a review group established by the Monetary Authority of Singapore (MAS) to revitalize the local stock market.

The MAS is now promoting a shift towards a more transparent disclosure-based framework. This approach aims to bolster individual investor responsibility by encouraging them to assess how well investment products align with their needs.

Koh noted, "This shift balances individual freedom with regulatory support, fostering boldness not only in entrepreneurship but also in our policy decisions. Singapore must take the lead in capital markets and be willing to embrace calculated risks to attract promising listings."

Stressing the importance of first-move advantages, he explained that establishing liquidity is essential for attracting further investment. "Once a market is known for liquidity, it becomes a beacon for more liquidity," he stated, citing Singapore's dominance in global iron ore trading as a prime example.

Koh highlighted the pressing need for Singapore to lead rather than follow, especially as hundreds of growth-stage start-ups in Southeast Asia seek to return capital to their investors. He underscored a significant gap in this sector that the SGX is poised to fill.

"While some firms may seek larger global exchanges, many others will require tailored solutions. Not every start-up will become a unicorn, but a robust capital market must cater to a diverse array of companies," he added.

This vibrant market is not just an asset for investors; it creates jobs and fosters innovation, crucial for Singapore's global standing. Koh likened the current push for revitalizing capital markets to Singapore's successful transformation into a research and development hub driven by visionary policies.

The stakes are higher than ever. Koh warned that if top companies opt to list abroad, it could disrupt the entire ecosystem, driving talent and financial expertise away from Singapore.

Concluding on a hopeful note, he reiterated the importance of collaboration in crafting an environment that nourishes innovation, growth, and resilience, ensuring Singapore’s continued leadership in the global financial arena.