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Singapore governance and transparency index hits new high
DESPITE challenges posed by the Covid-19 pandemic, Singapore-listed companies charted a new record in governance and transparency this year.
The Singapore Governance and Transparency Index (SGTI) 2020 surged to an all-time high score of 67.9 points, compared with 59.3 last
year.
The increase means that companies fared better in corporate governance disclosures compared to 2019. This is measured in terms of base scores, bonuses and penalties.
Associate Professor Lawrence Loh, Director of the NUS Business School’s Centre for Governance, Institutions and Organisations (CGIO) said the assessment process of listed companies for SGTI 2020 was not significantly affected by the pandemic.
“The necessary disclosures by companies were largely made well and on time, in line with Singapore Exchange Regulation’s stipulation. On
an even brighter note, companies have achieved remarkable progress as seen in the all time high of the index score – this reflects the
strong momentum driven by the ongoing regulation enhancements,” Prof Loh said.
This year’s index ranked a total of 577 Singapore-listed companies in the general category, and 45 trusts in the real estate investment
trust (Reit) and business trust category. All had released their annual reports by Jun 30, 2020.
The annual SGTI assesses companies on their corporate governance disclosure and practices, as well as the timeliness, accessibility and
transparency of their financial results announcements. It is published annually by CPA Australia, CGIO and Singapore Institute of Directors (SID).
Sats emerged at the top of the general category with 131 points. Singtel, which had led the index for five consecutive years, slipped
to the second position with 128 points. CapitaLand Commercial Trust remained top of the Reit and business trust category.
While most of the top 10 saw slight dips in their rankings, Sats, City Developments and Keppel Corporation improved. Another company
that made notable improvements is SingPost, jumping up 20 places to 12th this year.
In the Reit and Business Trust category, CapitaLand continued itsdominance, with its subsidiaries CapitaLand Commercial Trust, CapitaLand Mall Trust and Ascott Residence Trust in the top three positions. Netlink NBN Trust, Cromwell European Reit, Manulife US Reit
and OUE Commercial Reit each jumped over 20 spots to enter the top 10.
Tham Sai Choy, chairman of the SID, said it was encouraging to see the improving trend of overall scores and accompanying greater
accountability and transparency in disclosures.
“The global pandemic has renewed focus on sustainability reporting and on taking a long-term view. As companies reassess their business
models and strategic outlook, this is an opportune time to recalibrate and emerge stronger from the crisis,” Mr Tham said.
Source: https://www.businesstimes.com.sg/companies-markets/singapore-governance-and-transparency-index-hits-new-high