Despite increased market volatility stemming from US President Donald Trump's protectionist trade policies, some experts anticipate continued merger and acquisition (M&A) opportunities in Singapore. This is driven by strategic realignments and supply chain restructuring among companies.
While global market turbulence is expected to slow corporate deals and listings worldwide, analysts suggest that companies seeking funds for growth and expansion may turn to Singapore's capital markets to secure necessary financing.
Ong Hwee Leng, CEO of corporate finance advisory firm SAC Capital, stated, "Companies with growth plans may consider listing on the Singapore Exchange (SGX) as a driver for expansion, especially if funding options in other markets, more severely impacted by global volatility, become challenging."
Ong added that despite Trump's tariff waivers, overseas companies would likely explore utilizing Singapore's capital markets, potentially boosting deal activity in both the private and public sectors within Singapore.
However, she noted that tariff-induced uncertainty could also affect ongoing privatization deals on the SGX. "Generally, privatization will slow down because the value that buyers are willing to pay to take companies off the market and privatize them could be significantly lower," Ong explained. She further added that for family-owned listed companies, decisions would hinge on whether the next generation can effectively manage the business and whether they can obtain a fair value for their assets or businesses in the market.
Nevertheless, Ong remains optimistic, stating, "Overall, I think corporate deal activity will increase."
Jason Soh, Group Head of Investment Banking at investment services firm CGS International, commented, "While a slowdown will impact Singapore's corporate sentiment and earnings, the current environment could represent a new growth cycle for some companies." He pointed out that the current geopolitical tensions and the increased urgency for diversification are leading to a greater need for local supply chain establishment, which in turn creates more deal opportunities. He also mentioned the necessity of initial public offerings (IPOs) for investors to recycle capital and for companies to raise funds.
Luke Pais, Managing Partner for Corporate Finance at consultancy firm Ernst & Young, analyzed that the impact of Trump's tariffs on IPOs and other corporate deals would vary across sectors, depending on how companies are affected by the tariffs. "Companies focused on domestic or Asian regional trade may see higher investor demand," he said, adding that some companies might also explore structured financing deals for short-term funding relief while they restructure their businesses in the current environment.
However, this shifting landscape for corporate deals and IPOs in Singapore emerges against a backdrop of billions of dollars in listings and acquisitions being put on hold following Trump's announcement of US tariffs on all imports on April 2.
Notable examples of companies withdrawing their IPO plans in the US include ticket platform StubHub Holdings, fintech giant Klarna Bank, and trading platform eToro Group. Investors are also exhibiting caution in Malaysia, which had been Southeast Asia's top IPO market since 2024. On April 9, home appliances company Cuckoo International announced a two-month postponement of its Bursa Malaysia listing, citing current market volatility. Additionally, specialty chemicals manufacturer Sumisaujana Group experienced a sharp 25% drop below its IPO price on its debut on the Malaysian bourse.
While Singapore's investor accessibility and listing regime might appear more appealing to companies planning public offerings, the local IPO market has seen a decline in recent years, prompting central bank-led initiatives to attract SGX listings. According to LSEG data, Singapore's equity capital market activity in the first quarter of 2025 fell by 52.4% year-on-year to US$265.7 million (S$350 million), marking the lowest quarterly total since 2016.
The first quarter saw only three IPOs from Singaporean companies – Uni-Food Holdings, FBS Global, and Basel Medical – all on Nasdaq, with none on the SGX. A fourth Singaporean firm, swimming school Fitness First, is slated to begin trading on Nasdaq in April. So far in 2025, only two companies, automotive dealer Vince Holdings and confectionery manufacturer YLF Group Marketing, have lodged their offer documents for SGX listing. In 2024, only four companies successfully completed their IPOs.
Some experts anticipate that global macroeconomic volatility will further dampen IPO sentiment and deals in Singapore and the broader ASEAN region, with investors likely preferring to wait for market stabilization before committing to listings. Elaine Tan, Head of Deals Intelligence at LSEG, stated, "As global trade dynamics evolve, Singapore faces new challenges amid recent US tariff impositions. These tariffs have already triggered delays and cancellations of M&A and IPO activities globally." She added, "Singapore's deal landscape may witness a reduction in transactions and listings, particularly in sectors with significant exposure to global markets."
Benjamin Charoenwong, Associate Professor of Finance at INSEAD, analyzed that companies with substantial US or China operations, such as those in technology, advanced manufacturing, and other export-oriented businesses, would be most vulnerable as tariffs directly impact their valuations and future earnings projections. Charoenwong explained that capital market activities like IPOs and other corporate deals are crucial for fostering early-stage investment and entrepreneurship.
"When founders and investors see a path to liquidity, they are more likely to fund and build new ventures," he said. "While Singapore's IPO activity has slowed, the nation remains a key hub for private market activity. These deals not only facilitate capital formation but also contribute significantly to high-value employment, tax revenue, and Singapore's global financial standing." Consequently, a prolonged downturn could stifle the start-up ecosystem, reduce deal flow, and weaken sectors supporting capital markets, such as legal, accounting, and asset management.
Regardless, the SGX and Singapore-focused investment firms have indicated their continued efforts to attract more deals to the local market. A spokesperson for SGX Group told The Straits Times, "We are watching the evolving situation around US trade tariffs, as are companies." The spokesperson added that companies seeking or planning to list in Singapore are proceeding with their plans while adjusting timelines as needed in response to external developments. "Our discussions with these companies are ongoing, and interest in listing remains strong," the spokesperson emphasized.
A spokesperson for Temasek-backed investment firm 65 Equity Partners, when asked about new investment approaches and strategies to list companies on the Singapore market, replied that they "take a long-term investment perspective." The firm, which invests in family-owned and entrepreneur-led businesses with the eventual aim of a public listing, stated, "While the current macro environment remains uncertain, as an active investor, we manage our portfolio investments from a risk mitigation perspective." They further added that they "continue to evaluate opportunities with the goal of generating sustainable returns over the long term."
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