Singapore’s move to simplify the initial public offering process, part of recent measures to boost its moribund equities market, is unlikely to reverse a yearslong trend of delistings crowding out new listings, analysts say.

The Monetary Authority of Singapore on Thursday began seeking feedback on proposals to streamline prospectus disclosures for IPOs. Singapore Exchange Ltd.’s regulatory arm also proposed listings-related reforms.

“We believe that the trend of delistings will continue in the near future, driven by long-term structural challenges such as low liquidity, compressed valuations, and the growing attractiveness of private capital,” said Shekhar Jaiswal, an analyst at RHB Bank Bhd.

The urgency to fix the local stock market is growing. At least 16 companies are on the delisting track as of the first week of May, the Business Times daily reported. That compares to the 21 firms that were delisted in all of 2024, according to data from Maybank Securities. Separately, IPO proceeds fell to the second-lowest in more than two decades last year.

The take-private trend is picking up despite a Singapore government-led taskforce in February proposing a raft of incentives, including tax perks to attract listings and incentivizing the launch of funds investing in local stocks.

“The primary determinant for any company to list is the potential valuations that it can achieve. Listing processes and disclosure requirements, whether for primary or secondary listings, are a much lower priority consideration for any issuer, if at all.” said Lee Ooi Keong, managing director at Clover Point Consultants.

Frasers Hospitality Trust became the latest target of a delisting last week after a Thai tycoon-controlled firm unveiled a take-private proposal at a valuation of S$1.37 billion ($1.1 billion). Other companies that have recently announced plans to delist include nursing home operator Econ Healthcare Asia Ltd., Paragon Real Estate Investment Trust and agricultural company Japfa Ltd.

“Regulatory measures on their own won’t move the needle,” said Stefanie Yuen Thio, joint managing partner at TSMP Law Corp. Policymakers will need to “address all the issues — liquidity, valuations, regulatory friction and investor enforcement rights.”

SGX has had just one IPO so far this year raising $4.5 million, according to Bloomberg-compiled data. There were four listings last year that raised a total of $34.4 million.

An equity market review group has said it will propose further measures by the end of 2025, including ways to boost listed companies’ shareholder engagement, attract retail liquidity and strengthen investor protection.