Singapore listcos reach corporate governance ‘plateau’ amid declining performance; Keppel claims top spot in key index

[SINGAPORE] Singapore’s corporate governance progress appears to have plateaued, with listed companies recording lower scores in an annual industry scorecard.

Significant room for improvement remains in the corporate governance disclosures of Singapore Exchange (SGX)-listed companies, according to the latest Singapore Governance and Transparency Index (SGTI) released on Wednesday (Aug 5).

The 2026 SGTI results showed a slight decline in the general category score to 69.5 points, from 70.9 points previously.

In the real estate investment trust (Reit) and business trust category, the overall mean score was 88.9 points, compared with 90.2 points in 2025. The 2026 score comprised a mean base score of 73.4 points, a mean bonus of 17.7 points and a mean penalty of 2.2 points.

Asset manager Keppel topped the rankings in the general category, moving up from second place last year. It was followed by ComfortDelGro , Jardine Cycle & Carriage , DBS and Sats .

In the Reit and business trust category, CapitaLand Ascott Trust retained its top position, followed by CapitaLand Integrated Commercial Trust , NetLink NBN Trust , CapitaLand Ascendas Reit and Far East Hospitality Trust .

The SGTI is an annual study jointly conducted by CPA Australia, the Centre for Governance and Sustainability (CGS) at the National University of Singapore (NUS) Business School, and the Singapore Institute of Directors (SID).

The Business Times is the strategic media partner for the study.

Since its launch in 2016, the SGTI has tracked the state of corporate governance among Singapore-listed issuers. For the 2026 rankings, researchers assessed the disclosures of 458 listed companies and 41 Reits and business trusts.

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The assessment was based on companies’ annual reports for the 2025 financial year that were released by May 31, 2026. Other sources reviewed included sustainability reports, company websites, announcements on the SGX website and media coverage.

“The index has evolved over the years, but its purpose has remained constant: painting a picture of the state of corporate governance among Singapore’s listed issuers,” said Tan Boon Gin, CEO of SGX Regulation (SGX RegCo).

He added that the annual snapshot provides insights into which issuers are performing well in areas such as disclosing interested-party transactions and responding to investor queries.

Tan was delivering the keynote address at the Singapore Governance and Transparency Forum 2026, where the findings of the SGTI were released. The event saw awards being presented to the top-ranked companies, and included a panel discussion.

The SGX RegCo CEO also highlighted the growing importance of value creation, noting that boards and management should consider the purpose of measuring corporate governance in this more value-focused environment.

This comes as initiatives such as the Value Unlock programme were launched earlier this year to help companies realise their potential.

“Good governance is not an end in itself,” said Tan. “ It is the practical expression of a board that is working to create value for all.”

“Critical crossroads”

Tan also stressed that the next phase of corporate governance development would require directors to take on a more active role in driving long-term value creation.

“In this value era, we need directors who are prepared to ask difficult questions, challenge conventional thinking, and keep companies focused on what ultimately matters: creating sustainable value for all shareholders,” he said.

Echoing the need for a shift in approach, Professor Lawrence Loh, director of CGS at NUS Business School, noted that the corporate governance landscape in Singapore appeared to have reached a plateau.

Speaking to BT on the sidelines of the event, Prof Loh said that the market had reached a point where continuing with the same approaches would deliver diminishing returns.

“We are at a very critical crossroads now for the corporate governance landscape in Singapore.”

He called for a new perspective that moves beyond traditional measures and focuses on how governance can help companies unlock value.

While the Republic has a group of companies with strong governance standards, Prof Loh said that these firms represent only a small segment of the market. The bigger challenge is encouraging small and mid-cap (SMID) companies to improve as they continue to lag behind their larger counterparts in governance practices, he added.

Closing the gap

According to the SGTI, the gap in mean scores between large-cap and SMID companies narrowed to 17.7 points in 2026, from 19.8 points in 2025.

Large-cap companies are defined as those with market capitalisation above S$1 billion, while SMID companies have market capitalisation of up to S$1 billion.

Despite the narrower gap, large-cap companies continued to outperform those in the SMID segment across key disclosure areas, with the widest differences seen in disclosure and transparency.

Prof Loh noted that the key message for SMID firms is that stronger governance is in their own interest, as it can help them gain greater recognition, unlock value and attract investors.

He added that a revised corporate governance framework expected next year could provide a “booster shot” for the market, by encouraging companies to adopt a more value-driven approach.

The professor observed that corporate governance measurement has traditionally been retrospective, focusing on past performance and disclosures. He believes that a more prospective approach will be needed to encourage companies to improve and realise their potential.

“Ultimately, what is being measured is important,” he said, adding that organisations such as CGS, SID and CPA Australia play an important role in providing corporate governance “report cards” through initiatives such as the SGTI.

Wider focus

The SGTI’s scoring is based on a five-pronged framework, which assesses board responsibilities, rights of shareholders, ESG and stakeholders, accountability and audit, and disclosure and transparency.

Its assessment framework is currently under review, including a proposed market-centric model that incorporates value measures into the evaluation.

Chan Kum Kong, head of capital market development at SGX, said that the shift towards value creation is not unique to Singapore, with markets such as Japan and South Korea having already moved in this direction.

Speaking at a panel discussion during Wednesday’s forum, he said that the focus of governance reforms in these markets is increasingly on how companies treat shareholders and create value.

“In Singapore, we wanted to see how we can shift that mindset, especially at a board level, because this is a top-down initiative,” noted Chan.

He added that SGX has been engaging with fund managers under the Equity Market Development Programme and market analysts to encourage companies to “step up (their) game”, as global investors are already accustomed to stronger shareholder-focused practices in markets such as Japan and South Korea.