SINGAPORE: The Singapore Exchange (SGX) has launched two new indexes — the iEdge Singapore Next 50 Index and the iEdge Singapore Next 50 Liquidity Weighted Index — as part of a broader effort to boost investor demand, improve market liquidity, and expand the visibility of companies beyond the city-state’s largest listed firms. The indexes, unveiled on September 22, track the performance of the 50 companies on the mainboard ranked below the top 30 by market capitalisation, which form the Straits Times Index (STI).
The new benchmarks were first announced by Monetary Authority of Singapore (MAS) deputy chairman Chee Hong Tat earlier this month. Chee, who also serves as Minister for National Development, said the development is a step toward expanding Singapore’s capital markets. “Over time, we hope to see more indices emerge, covering areas such as corporate governance and sustainability — creating a virtuous circle and generating positive momentum for the entire market,” he said.
Companies included in the new indexes must meet minimum criteria of $100 million in market capitalisation and $100,000 in median daily turnover. Constituents span diverse sectors, including industrials, financials, energy, materials, and real estate investment trusts (Reits), the latter forming the largest category with 17 companies. Among the heaviest weighted are ComfortDelGro, Yangzijiang Financial Holding, and Keppel Reit. The liquidity-weighted index also highlights iFast Corporation, Singapore Post, Sheng Siong Group, CapitaLand Ascott Trust, and Suntec Reit as top constituents.
SGX Group’s head of equities Ng Yao Loong said the initiative aims to foster a more inclusive market ecosystem. “By showcasing companies beyond the 30 largest, we are helping investors to better capitalise on the full spectrum of opportunities in Singapore’s stock market,” he said, adding that the new indexes can serve as building blocks for innovative products and strategies.
Analysts welcomed the move, saying the new benchmarks could catalyse growth in mid-cap equities and attract new financial products such as exchange-traded funds (ETFs) and futures. Malcolm Koo, chief executive of CGS International Securities Singapore, noted that index-linked products would enhance participation, boost liquidity, and support MAS’s Equity Market Development Programme. SAC Capital’s head of equities research Matthias Chan called the indexes “an excellent start” toward highlighting companies outside the STI, with potential for further segmentation by market cap or sector.
Comparisons were drawn with other global markets, where secondary benchmarks such as London’s FTSE 250 and the US’s Russell 2000 play pivotal roles in diversifying investment flows. Analysts said the new indexes could serve as stepping stones for mid-cap firms to graduate into the STI, improve analyst coverage, and draw institutional and retail participation.
However, some cautioned that the full benefits would only materialise if ETFs or similar investment vehicles are developed to track the new indexes. Without such products, direct retail access will remain limited. Gerald Wong, CEO of financial platform Beansprout, said investor education will be critical: “Investors need to understand how the indices are constructed, what they represent, and how they align with their investment goals.”
Maybank’s head of research Thilan Wickramasinghe added that deeper reforms are needed to sustain momentum. “For many of these companies to qualify for institutional investment, increasing free floats, improving trading multiples, and fostering better communication with investors will be essential,” he said.
The two new benchmarks will be reviewed and rebalanced quarterly, in March, June, September, and December, ensuring they remain aligned with liquidity trends and market dynamics. SGX said the indexes add to its suite of products, including thematic offerings such as the iEdge-OCBC Singapore Low Carbon Select 40 Index and iEdge S-Reit Leaders Index, underscoring its ambition to strengthen both local depth and global relevance.
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