Current Affairs

SGX seeks feedback on whether to retain quarterly reporting


SINGAPORE: Singapore-listed companies may no longer have to release their financial results every quarter in the future, depending on the outcome of feedback the Singapore Exchange (SGX) receives through a public consultation launched on Thursday (Jan 11).

In a press release on Thursday, the SGX said it is seeking feedback on whether quarterly reporting should be retained, amid persistent concerns about compliance costs.

If removed, all companies will still be required to report their financial results for the first half and full year, it added in the consultation paper.

If quarterly reporting were to be retained, SGX is proposing several changes to make it less burdensome for companies.

One of the proposed changes is to increase the minimum market cap of companies that are required to release quarterly reports to S$150 million, from S$75 million now.

When quarterly reporting was first implemented in 2003, about 37 per cent of companies were required to do so. Today, that figure has climbed to 70 per cent.

Should the threshold be increased to S$150 million, fewer companies would be required to report their quarterly earnings, considering that only about 38 per cent of the companies listed as of end-October last year meet that market cap.

CEO of the Singapore Exchange Regulation Tan Boon Gin said in a media briefing on Thursday that while he recognised the role that quarterly reports play in disclosing information to minority shareholders, compliance costs are also a concern for companies.

Another proposed change is to allow minority shareholders of companies with a market cap of S$150 million or more to vote on whether they would want the company to continue releasing quarterly reports.

Mr Tan said: “If quarterly reporting is retained, we are proposing that minority shareholders should be given the power to decide whether to allow their company to opt out of QR. As minority shareholders are the main beneficiaries of quarterly reporting, they should be allowed to decide whether the benefits they get out of quarterly reporting outweigh the costs to the company.

SGX is also proposing that if quarterly reporting is retained, companies be required only to include simpler contents to the balance sheet.

The public consultation will end on Feb 9. 

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