SGX and SET to Enhance Collaboration with Thailand-Singapore DR Linkage

Singapore Exchange and The Stock Exchange of Thailand are planning to meet the growing demand through linkage.

Singapore Exchange (SGX) and The Stock Exchange of Thailand (SET) announced today that both exchanges are planning to expand partnership through the launch of Thailand-Singapore DR Linkage.

According to an official press release shared with Finance Magnates, the mentioned linkage is the first exchange-level DR cooperation in ASEAN. The launch will enable investors to access the growth markets in the region. SGX and SET expect to launch the first DR of the linkage in the next 12 months.

Both exchanges are planning to meet the rising demand for diversified investment options through linkage. The DR linkage will enable investors in Singapore and Thailand to buy and sell securities via a DR through their local broker arrangements and in their domestic currency.

Commenting on the recent announcement, Loh Boon Chye, CEO of SGX, said: “We have been partners with SET for many years and the Thailand-Singapore DR Linkage will enable us to build together and set a blueprint for future regional collaboration. It raises ASEAN’s profile and offers investors enhanced access with unmatched efficiency. By harnessing each other’s capabilities, we can bring greater connectivity not only across borders but across multiple asset classes.”

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Yesterday, the Monetary Authority of Singapore (MAS) and the Reserve Bank of India (RBI) announced a plan to link Singapore’s PayNow and India’s Unified Payments Interface (UPI) by July 2022 to facilitate users through instant and low-cost fund transfer services.

Portfolio Diversification

In the recent announcement, SGX highlighted that one of the key benefits of the linkage will be the portfolio diversification of investors in Thailand and Singapore.

“The Thailand-Singapore DR Linkage not only enables investors to conveniently diversify their portfolio in their home countries but also improves price efficiency by linking the liquidity of the two premier ASEAN markets. The collaboration is aligned with SET’s key strategy to venture new frontiers: adding products with international exposure to widen business opportunities while offering new investment alternatives to investors,” Pakorn Peetathawatchai, President of SET, commented.

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