On 02 June 2021, TSMP Law Corporation joint managing partner Stefanie Yuen Thio was quoted in a Law.Asia article about whether Asia could move quickly enough to lure sponsors from the US in the current SPAC wave. She agrees that Singapore has to move quickly and needs to adopt US rules as far as possible to achieve this.

She said “the SPACs bandwagon quickly or risk losing our unicorn success stories to the Nasdaq”

For Singapore to grab a share of the SPAC market, it needs to adopt US rules to the fullest extent possible because “that’s what investors and target businesses are looking for”, she said. If the US tightens controls, Singapore can do so, too, and hence needs to be a “price taker” instead of coming out with a whole new framework.

She fears Singapore could end up with another S-chip problem should it attract second-rung sponsors and targets with less robust management and governance structures. The idea is to get the best sponsors and premium targets because the quality of investors who take positions will bring a higher level of scrutiny, she explained. “Having quality market participants is just as important to a well regulated market as having tight listing rules.”

Both S Sivanesan and Stefanie said that there have been numerous inquiries from clients to understand SPACs, so the interest exists.

“There’s still a runway, even if it’s at a less fevered pitch,” she said. As Chinese investors and targets are wary about listing in the US, there is a need for an internationally recognised capital market for them. Singapore – not being a part of China, unlike Hong Kong, and therefore geopolitically neutral – is well placed to be the next listing venue for SPACs. “But we have to do it quickly because the frenzy may not last long,” she also added.