SGX will look at possibility of online voting at its future meetings

THE Singapore Exchange (SGX) will look at the possibility of having online voting for its future annual general meetings (AGMs), said several directors on Thursday, in response to a shareholder query.

A shareholder had asked during SGX's virtual AGM if the board could look at allowing shareholders to vote on resolutions electronically during meeting registration, without having to fill up hardcopy forms.

With most AGMs currently held virtually due to Covid-19 measures, the shareholder also asked if other listed companies could also be encouraged to do the same, as in-person attendance at meetings is unlikely to resume any time soon.

SGX's virtual AGM on Thursday did not allow for live voting, and shareholders submitted proxy forms ahead of the AGM.

SGX chief executive and executive director, Loh Boon Chye, said they would take the comments on board. He noted that SGX has progressed from its virtual AGM last year, where there were no live questions, to the format this year, which allowed for live question and answer.

"We will look to progress and take those feedback on board," he said.

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Meanwhile, SGX chairman and non-executive director, Kwa Chong Seng, added that they had debated on having online voting, but an issue was around integrity of votes.

"Frankly, I should add that we get a significant portion of our votes before the meeting," Mr Kwa said. "So really the online voting in the session itself is maybe not so critical, but we'll certainly look at it."

During SGX's virtual AGM, shareholders voted overwhelmingly in favour for all the resolutions, including the one for its scrip dividend scheme. Over 90 per cent of votes were in favour for each of the resolutions tabled.

SGX's board and management also answered questions from shareholders during the 1.5 hour session.

Shareholders wanted to know how SGX's derivative business could compete with new products, such as those being launched in Hong Kong, which would rival SGX's FTSE China A50 index futures product.

SGX's head of equities, Michael Syn, said that SGX does not compete on a product by product basis, but rather seeks to offer the best platform possible for risk management and liquidity.

He likened it to the concept of supermarkets, saying: "All supermarkets might offer bread, they might offer milk, that is not the only way you compete, it is the total service offering that we offer."

Mr Syn added that the SGX has spent 15 years building the A50 product, and is also looking at how it can future proof and improve the product. SGX and FTSE Russell have also recently started consulting their A50 customers on the possibility of an A100 product.

A shareholder had also asked how local investors can be assured that the Thailand-Singapore depository receipt (DR) linkage - announced last month - would not end up as another Clob saga in the future.

The Clob saga involved a platform that enabled Singapore investors to trade Malaysian shares in the 1990s. During the Asian financial crisis, the Malaysian government took unilateral action to shut down trading leaving thousands of Singapore investors stranded.

Mr Syn noted that the DR initiative announcement coincided with a simultaneous joint announcement by the securities regulators in Thailand and Singapore, and this is nothing like Clob.

"This is something that has been developed and planned with the securities regulators in both markets, and the exchanges on both markets," he said.

He noted that an ecosystem of brokers, exchanges and regulators will work to ensure that the products are suitable, with liquidity built in an organised way. There would also be focus on education and research about the companies being appropriately channelled into each marketplace.

"There's potential for value creation because there is demand that we understand of in Thailand for Singapore shares, and we believe there could also be demand in Singapore for Thai, or even other regional Asean shares."

SGX closed at S$9.53 on Thursday, down 0.4 per cent.