I would like to add my S$0.02 worth here, like some of you had already mentioned, the local music band scene is made up of mostly indie and rock music. These kinds of music are not bad but they require a lot of acquired tastes to appreciate them which I don't think many local audiences will really enjoy. In short, these are musicians' music which only fellow musicians of the same genre will like. Even for western indie and rock groups, how many non-musician locals actually know about them? Not many, only local rock musicians know them.
To be commercially successful in music is to play what the masses like and not show them what to like. This, for what I have observed, is the main problem with the local music scene. Put yourselves in the shoes of record producers, there are bascially businessmen who are moneyminded, why would they want to produce something which they know/think that most people won't buy? Most people would prefer to listen to music that will make them feel good or relax and not remind them that life sucks, love hurts or whatever "pek-chek" things. Of course, there are people who are on the other side but not many.
The Chinese music scene is doing better because they are essentially pop commercial music that the public audience would want to hear. We have some very popular songwriters, arrangers and singers that are very famous in HK, TW, CN and here...you know who they are. They are successful because they have the right products which the masses want - nice sounding, sweet melodies and lyrics about love and they are not afraid of fellow musicians calling them as "sell-outs".
Please don't get me wrong, I am not condemning indie or rock music, I am just listing out what I had observed so far.