Will the ETF have sufficient liquidity or volume on SGX?

While the common perception is that the liquidity is reflected by the on-screen average daily trading volume and bid/offer data, this is actually not representative of the true liquidity of ETFs. In fact, an ETF is as liquid as its underlying. ETFs have three levels of liquidity across the primary and secondary markets:
1. Visible liquidity on the stock exchange, reflecting only the volume of trades executed in the secondary market exchanges;
2. Inventory held by the market makers on the secondary market provides additional liquidity. Large orders (e.g. from institutional investors) may be fulfilled by market makers off-screen at a tighter bid/offer spread; and
3. Creation and redemption of units in the ETF by the participating dealers, which is a huge determinant of ETF liquidity.
Do refer to the prospectus for details on liquidity risk.