Compliance crucial for SGX-listed foreign firms
Local shareholders would benefit from additional safeguards and disclosure practices to close the information gap.
Add BT as a preferred source
DeeperDive is a beta AI feature. Refer to full articles for the facts.
ACCORDING to the 2014 Singapore Exchange (SGX) annual report, 40 per cent of the exchange's 766 listed companies are based outside of Singapore. This makes the Singapore Stock Exchange a world leader in foreign listings, well on its way to being the "Asian gateway for companies seeking to tap international capital markets".
While the strategy of internationalising the local exchange is a sound move given the small size of our domestic market, one concern is whether these foreign firms have implemented adequate governance mechanisms to safeguard the interests of local shareholders.
A key finding of SID-ISCA's Singapore Directorship Report 2014 was that Singapore-registered firms demonstrated a higher level of compliance with several guidelines of the 2012 Code of Corporate Governance (Code) compared to firms which are registered overseas.
Share with us your feedback on BT's products and services
TRENDING NOW
From 1MDB to ‘corporate mafia’: Is Malaysia facing a new governance test?
Higher costs, lower returns: Why are Singaporeans still betting on real estate?
South-east Asian markets account for 8.8% of global capital inflows from 2021 to 2024: report
Richard Eu on how core values, customers keep Singapore’s TCM chain Eu Yan Sang relevant
