SBF welcomes the adoption of a risk-based approach to companies’ quarterly reporting
Thursday, 9 January 2020 [Singapore] – The Singapore Business Federation (SBF) welcomes the Singapore Exchange Regulation’s (SGX RegCo) announcement today that it will apply quarterly reporting requirements only for companies associated with higher risks while strengthening continuous disclosure requirements on all listed companies.
This is in line with one of the recommendations SBF’s “Position Paper for a Vibrant Singapore” released in 2016. In the paper, the Federation suggested that there is scope to review and raise the market capitalisation threshold for quarterly reporting for listed companies to reduce the compliance burden for smaller companies. This would, in turn, allow companies to devote more resources to grow their businesses significantly before they are held accountable for more disclosure obligations.
SBF CEO Mr Ho Meng Kit said, “This is good news for the Singapore business community. SBF has always held the view that rules and regulations should not overburden businesses, and as result, divert their attention from their main focus of value creation. This change away from mandatory quarterly reporting for listed companies is an important signal that business regulations are beginning to allow companies to adopt a longer-term perspective for their plans. One good outcome is that this would enable companies greater scope to look after their other stakeholders and not just their shareholders.”