On 15 May 1973, Singaporeans were notified through the press of amendments to Malaysia’s foreign exchange control regulations. The Malaysian government had decided to discontinue the interchangeability of currency between Singapore and Malaysia.[1] This decision affected the Stock Exchange of Malaysia and Singapore, which had a unique arrangement of having one stock exchange to serve the two countries. Starting from 9 May that year, authorised depositories, banks, stock brokers and solicitors in Singapore could no longer sign the declaration form for the registration of shares of Malaysian companies by Singapore residents.[2]
A three-man pro-tem committee was formed on 12 May 1973 to start conceiving a plan for the establishment of the Stock Exchange of Singapore at the earliest possible date. The committee was headed by Ng Soo Peng, who was then the chairman of the Stock Exchange of Malaysia and Singapore.[3]
The Second Reading of the Securities Industry Bill was brought into force on 23 May 1973.[4] With the enactment of the Securities Industry Act 1973, the Stock Exchange of Singapore Ltd was incorporated on 24 May 1973[5] and officially opened on 16 June that same year. Hon Sui Sen, then the finance minister, envisioned that the Stock Exchange of Singapore would become one of the leading stock exchanges in the world.[6]
References
1. Stock Exchange of Singapore. (1983). Stock Exchange of Singapore, 1973–1983 (p. 5). Singapore: The Exchange. Call no.: RSING 332.642095957 STO.
2. Ng, B. (1973, May 15). KL’s new shock move. The Straits Times, p. 1. Retrieved from NewspaperSG.
3. Ng. B. (1973, May 13). Brokers set up pro-tem committee to plan Exchange. The Straits Times, p. 1. Retrieved from NewspaperSG.
4. Ministry of Culture. (1973, June 16). Transcript of Speech by the Minister for Finance, Mr Hon Sui Sen, at the official opening of the Stock Exchange of Singapore Ltd on Saturday, 16th June 1973 at 10.30am. Retrieved November 27, 2013, from National Archives of Singapore website: http://archivesonline.nas.sg/
5. Stock Exchange of Singapore, 1983, p. 5.
6. Tsai, T. (1973, June 17). Bigger role for Exchange. The Straits Times, p. 1. Retrieved from NewspaperSG.
The information in this article is valid as at 2013 and correct as far as we are able to ascertain from our sources. It is not intended to be an exhaustive or complete history of the subject. Please contact the Library for further reading materials on the topic.