The Monetary Authority of Singapore (MAS) has collaborated with Stewardship Asia Centre (SAC) to examine the dynamics of investor-investee engagement within the Singapore market. The study, unveiled by Chee Hong Tat, Deputy Chairman of MAS, at the Singapore Institute of Directors’ Conference on 12 September, highlights the crucial role of engagement quality in influencing company valuations.
Preliminary findings reveal that 90% of institutional investors believe that effective communication of long-term strategies significantly affects company valuations. In response, MAS and SAC plan to develop practical guidance and templates to assist companies in crafting tailored engagement plans.
The Singapore Exchange (SGX) is also reviewing disclosure policies to enhance investor understanding of capital management and engagement practices.
Recognising the challenges faced by smaller firms in gaining visibility, MAS and SGX are working to provide platforms that amplify these companies’ market presence. Initiatives include investor roadshows, trade fairs, and media engagements to profile companies with compelling stories. These efforts complement MAS’ enhanced GEMS programme, which encourages research on under-covered or newly listed firms.
Chee emphasised the collaborative approach, stating, “This is what we want to do together, it is not just government alone, or industry alone, but we will do it together.” The initiatives aim to foster a supportive environment for companies to engage effectively with investors, ultimately unlocking shareholder value.
