Singapore-Malaysia stock connect must bridge corporate governance gap

The Southeast Asian neighbours see rich opportunity in a mutual market access scheme. Investors, however, have reason to tread cautiously.

Spanning the Straits of Johor, the JohorSingapore Causeway and Tuas Second Link are among the busiest foot crossings in the world. Nearly 300,000 people used them to trudge between Malaysia and Singapore each day, according to Singapore’s Immigration Department.

Now, the two neighbours and erstwhile rivals want to create a cross-market stock trading link that will make trading as smooth and convenient as travelling across the border.

But investors hoping for the same kind of success as mutual market access schemes elsewhere in the region must be wary of some key differences between Singapore and Malaysia which while they were once the same country have evolved...

¬ Haymarket Media Limited. All rights reserved.

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