Green shoots of stewardship culture among retail investors worth protecting

RETAIL investors in Singapore are generally not renowned for caring overly much about their long-term responsibilities as stewards of the companies they invest in. But the green shoots of a stewardship culture here can be seen if you look hard enough.

Investors are generally becoming more vocal in engaging listed companies. Several do ask thoughtful questions at annual general meetings, and there have been recent moves by industry bodies to establish a stewardship code and promote more awareness of retail investors' roles and responsibilities.

That gradually budding culture, however, may be placed at risk by the incentive structure for retail investors that could inadvertently be created here if the Singapore Exchange (SGX) does let companies list with dual-class shares.