Softer stance on QR is not a compromise on disclosure standards in Singapore

LAST Thursday, the Singapore Exchange (SGX) proposed wide-ranging options on mandatory quarterly reporting (QR) for the market to chew on.

While the market remains highly divided over the usefulness of QR, the regulator believes that the consensus view on compliance costs, notably for smaller companies, can no longer be ignored. Plus, the global regulatory landscape has changed and is shifting away from QR.

In Singapore, mandatory quarterly financial reporting was introduced in 2003 for listed companies with market capitalisation of more than S$20 million. The threshold was subsequently raised to S$75 million. When QR was revisited in 2006, the Ministry of Finance accepted the recommendation of the Council on Corporate Disclosure and Governance to retain the status quo - other than companies with smaller market capitalisation, all listed companies need to comply with the 45-day reporting deadline for quarterly results and 60 days for annual results.