By Observing the 1998 Asian crisis and 200 dotcom crisis, there is a trend of increasing number of proitable mid-to-small cap companies opting to delist. We will likely note a similar outcome this time round in 2009 especially with the sharp spike in counters falling under the small cap category, firms with market cap less than S$100m, making up 68% o the market.

Factors leading to firms being delisted;
---privatization by holding companies due to unreasonable valuations,
---acquired by foreign bodies that have no intention for a listing status and
---China companies seek to list back in mainland or Hong Kong in light of expecting better valuations.

Finally, we have to note that for a firm to list, there are recurring public listing expenses and requirements to observe stringent listing and disclosure regulations.

In conclusion, companies that will benefit from this trend either through M&A speculations or high payoff strategic mergers are;
---cash rich irms that managed to acquire targets at fire sale prices, strengthening their strategic position and market share, and
---firms with valuable assets, be it physical, branding or networks that are trading at steep discount to book due to poor business outlook.

Regards,
Heiwa