The Singapore Exchange Regulation (SGX RegCo) has proposed new listing rules requiring listed companies to disclose all key performance indicators used to determine executive pay, aligning compensation with long-term shareholder value. Firms must also detail dividend policies in annual reports and maintain a website and investor relations policy for regular two-way communication with investors.
Currently, only director and CEO remuneration are required to be disclosed. The "comply-or-explain" provisions of the Code of Corporate Governance have not been effective, with about two-thirds of major issuers not disclosing investor relations policies or linking pay to long-term value creation.
Some raise concerns about higher compliance costs for small and mid-cap firms, but these are weak arguments. Listing comes with inherent compliance costs, and the proposed rules are precisely what smaller firms need to boost transparency, attract investor interest, and improve liquidity. Financial help is available under the "Value Unlock" program announced last November.
The changes are expected to take effect from 2027, with disclosures in 2028 annual reports. This is a timely and necessary step to boost investor confidence and corporate valuations as Singapore's market matures and shareholder expectations rise.