Uplifting governance of private companies

PRIVATELY held companies have grown in number over the past few years, even as publicly listed companies have declined. In conjunction with this trend, the incidence of corporate failures among private companies has risen. This highlights the urgency for a closer look at the standards of corporate governance in private markets.

The number of listed companies in Singapore has hovered around the 700s since its peak of 782 in 2010. Over the past five years, delistings have outnumbered listings on the Singapore Exchange, and the total market capitalisation of companies with a primary listing in Singapore has fallen by nearly S$100 billion or 14 per cent.

The shrinking volume of initial public offerings has corresponded with a rise in private equity. The number of companies registered in Singapore grew from 301,682 in January 2017 to 353,538 in December 2019, a rise of about 17 per cent.