MAS: Annual report 2006 / 2007
CONTENTS
HOME
 
ENTERPRISE: Our Role
BUILDING ON A ROBUST MACROECONOMIC ENVIRONMENT
DEVELOPMENTS IN THE SINGAPORE SECURITIES MARKET
FOSTERING A SOUND & REPUTABLE FINANCIAL CENTRE
RISK MANAGEMENT & INFRASTRUCTURE
GROWING SINGAPORE AS AN INTERNATIONALLY COMPETITIVE FINANCIAL CENTRE
CURRENCY
ORGANISATIONAL INITIATIVES
GROWING SINGAPORE AS AN INTERNATIONALLY
COMPETITIVE FINANCIAL CENTRE
34
Asset Management 34
Box 7 - Emerging Clusters In Singapore’s Financial Services 35
Active Trading in the Equities and Derivatives Market 37
Leading Real Estate Investment Trusts Market in Asia 38
Shipping Trusts Seek Singapore Listing 38
Infrastructure Finance Taps the Capital Markets 38
Box 8 - Regulatory Oversight Of Commodity Futures 38
Growth in Collateralised Debt Obligations Market 39
Growth in Over-the-Counter Commodity Derivatives  
  Central Counterparty Clearing Activity 39
Box 9 - Listing Of Pioneer Exchange Traded Funds 39
 
Leading Real Estate Investment Trusts Market in Asia
Singapore’s Real Estate Investment Trusts (REITs) market grew significantly in 2006 with eight new REITs listed on the SGX and five follow-on offerings by existing REITs. Among the new REITs were Singapore’s first hotel REIT as well as Asia’s first healthcare REIT. As at end April 2007, there were 16 REITs with an aggregate market capitalisation of S$27 billion listed on the SGX, making Singapore the largest REITs market in Asia outside Japan.

The success of the REITs market is due to Singapore’s robust yet pro-business regulatory framework and competitive tax framework. This makes Singapore an attractive location for the securitisation of both domestic and offshore real estate assets in the REITs market. Cross-border REITs have emerged as a strong trend in 2006, further consolidating Singapore’s status as a regional REITs hub. These REITs give investors exposure to properties across the Asia Pacific including Singapore, China, Indonesia, Hong Kong, Vietnam, Philippines and Australia. Singapore-listed REITs have been large issuers of commercial mortgage-backed securities, contributing 20% of all issuance of mortgage-backed securities in Asia ex-Japan in 2006.