Is quarterly reporting really such a pain?

SINGAPORE (Jan 22): Ron Sim, founder, chairman and CEO of massage chair retailer OSIM International, famously blamed quarterly reporting requirements for “destroying value” by forcing investors to focus on short-term financials. This onerous requirement was reportedly one reason he chose to delist from the Singapore Exchange. He is now seeking to list his company — under the new name V3 Group — in Hong Kong.

Since 2003, it has been mandatory for companies with a market capitalisation of at least $20 million at the point of listing to report their financials every quarter. This threshold was later revised to $75 million. Now, in response to market feedback, SGX is mulling raising the threshold even further — to $150 million.

The feedback, according to SGX, is that quarterly financial statements cost money and distract management from applying their time and energy in more important areas such as growing their businesses. The European Union and the UK dropped quarterly reporting requirements in 2013 and 2014, respectively. “The main drivers are really the international regulatory landscape as well as feedback from stakeholders,” says Tan Boon Gin, CEO of SGX RegCo.

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