Investor relations deserve attention for equity market reforms to work
Communication between Singapore-listed companies and their shareholders, analysts and potential investors must improve for these firms to reach their potential
[SINGAPORE] Among the set of proposals unveiled last week to strengthen the stock market, one of them struck me as being particularly timely.
The Monetary Authority of Singapore (MAS) will allocate S$30 million from the Financial Sector Development Fund for grants to help listed companies develop competencies in the areas of corporate strategy, capital optimisation and investor relations (IR). This is to encourage a sustained focus on developing shareholder value.
Make no mistake, these Singapore-listed companies are generally well-managed and financially sound. But many remain undervalued due to insufficient investor engagement and poor articulation of corporate strategy and growth potential, MAS’ equities market review group had said in its final report.
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