One of Singapore 's most prominent shareholder advocates has renewed his call for the introduction of a dual-class share structure for the local bourse, as public debate on the hot topic hits fever pitch.
"Activists say we should not be entertaining dual class shares, I say do it, with safeguards," David Gerald, president and CEO of the Singapore Investors Association told CNBC's Squawk Box .
The organization represents more than 70,000 retail investors and is the largest organized investor group in Asia.
"Any capital market that is aspiring to be leading in this part of the region should have that," he said.
"Retail investors should not be taken to be idiots, they're educated, they're knowledgeable and they should make an informed decision."
Dual class shares are just one component of a series of proposals that the Singapore Exchange (Singapore Exchange: SGXL-SG) (SGX) has put forward for public consultation, in a move aimed at improving its international competitiveness, building retail market participation and enhancing overall market liquidity.
Striking a balance
Under current SGX rules, each company has a "one share, one vote" structure.
If introduced, a dual-class structure would allow newly listed companies to offer two separate types of shares. Typically, one class of shares may have more voting rights than the other, even though the share is issued from the same company.
Under the current proposal, companies could offer a maximum voting differential of 10-to-1, meaning if a company listed two classes of shares on the market, one class of share could have at most 10 times more voting rights than the other.
Recent American IPOs such as Snap Inc. took advantage of the dual class share structure in the US. Snap Inc. (SNAP) was the first IPO of its kind to controversially offer "no vote" stock, meaning investors in that class of share would have no say in the company strategy or governance.
Major American technology companies such as Alphabet (GOOGL) (the parent company of Google), Facebook (FB) and Alibaba Group (: ) also offer dual class shares on other exchanges.
The introduction of dual class shares would enable Singapore to compete for major international listings, as competition between regional bourses for big IPOs gains momentum.
Speaking at the recent Singapore Equities Dialogue, SGX CEO Loh Boon Chye said investors and companies have become more sophisticated and the SGX must remain relevant.
"An attractive dual-class structure could enable entrepreneurs to swiftly accelerate business expansion, while continuing to lead the strategies and growth of their companies," he said.