SGX mulls changes to quarterly reporting obligations

SINGAPORE (Jan 15): Citing the cost of reporting and broader global trends, the Singapore Exchange is asking whether quarterly reporting requirements should be relaxed or even dropped entirely. The exchange has proposed a slew of tweaks and is seeking feedback from the public.

For the past decade, Singapore-listed companies with a market value of at least $75 million at the point of listing are obliged to report their financials quarterly. The premise behind this rule was to help level access to information. Minority shareholders are perceived to be at a disadvantage versus controlling shareholders, who have better and timelier access.

According to SGX, however, companies and stakeholders have raised concerns over the costs incurred in reporting. Smaller companies, in particular, have been hit disproportionately. “We can agree that there is value to regular disclosure, but there is a cost to it. And that cost needs to be weighed against the benefits,” says Tan Boon Gin, CEO of SGX RegCo, at a media briefing on Jan 11.

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