Learning to speak about the future without promising it

FOR years, Singapore-listed companies have been anchored to a simple rule: never give forward-looking guidance. Better to stay factual, backward-looking and safe than risk being wrong, misquoted or sued.

That instinct is understandable. But in today’s markets, it is no longer sufficient.

In a Jan 16 post on its website, Singapore Exchange Regulation urged companies to provide forward guidance “thoughtfully” and “responsibly” to build investor trust. Now the regulator has spoken, how will companies take it from here?

Investors are not asking companies to predict the future. They are asking them to explain how they are navigating it. In an environment shaped by volatile geopolitics, rapid technological change and shifting cost structures, silence about the road ahead increasingly looks less like prudence and more like opacity.

Globally, the conversation has moved. Companies in the US, Europe and parts of Asia now routinely share outlooks, scenarios and directional guidance, carefully framed and caveated. They speak in ranges, not absolutes. They discuss assumptions, not guarantees.

The objective is not precision, but credibility.

Singapore-listed companies, by contrast, often default to minimalism. Results briefings focus heavily on historical performance. Question-and-answer sessions are marked by careful deflection. Forward-looking questions are met with stock phrases about “monitoring conditions” or “remaining cautiously optimistic”.

This creates a gap. Analysts and investors still need to build models, assess risk and form views. When companies do not articulate their thinking, the market fills the vacuum with its own assumptions. Ironically, efforts to avoid misinterpretation can end up increasing it.

Forward-looking guidance, done well, is not about forecasting earnings per share to the second decimal. It is about explaining strategic intent. What variables matter most to management? Where are margins under pressure? How are capital allocation decisions being made? Which risks are intensifying, and which are easing?

Such disclosure is a form of transparency, not bravado.

There are legitimate concerns. Legal liability is one. Market discipline is another. Singapore’s regulatory culture has traditionally leaned conservative, and boards worry about being held to statements made in good faith under uncertain conditions.

This is where governance and communication discipline matter. Clear disclaimers, scenario-based framing and consistency over time reduce risk. So does equipping boards and management teams to communicate uncertainty without sounding evasive or overconfident.

Forward-looking engagement is also a signal of respect for investors. Institutional shareholders increasingly see themselves as long-term partners, not just traders. They want insight into management’s mindset, beyond its spreadsheets.

Companies that communicate thoughtfully are often rewarded, even when the outlook is challenging.

Markets, after all, tend to be more forgiving of bad news than of no narrative at all. When guidance is revised or withdrawn, investors may react, but they are less likely to feel blindsided if uncertainties were acknowledged upfront.

This is especially relevant for mid-cap and smaller Singapore-listed companies competing for capital and attention. In a crowded global marketplace, transparency is a differentiator. Silence is not.

None of this argues for reckless optimism or casual promises. The future remains uncertain, and companies should say so plainly. But explaining how one is preparing for multiple futures is not the same as predicting a single outcome.

As capital markets mature, so must corporate communication. Learning to speak responsibly about the future is no longer optional. It is part of earning trust, sustaining engagement and remaining investable in a more demanding world.

The writer is group general counsel and chief sustainability officer of Jardine Cycle & Carriage, a member of the Jardine Matheson Group. He sits on the SGListCos advisory council and the global council of US mental health charity, One Mind At Work.