Singapore, 1 August 2024 – Singapore-listed companies and trusts have performed strongly in the areas of shareholder rights as well as environmental, social and governance (ESG) practices, according to the 2024 Singapore Governance and Transparency Index (SGTI).
The performance in these areas contributed to an overall mean SGTI score of 69.3 points in the General Category. SATS took the first position in this category, followed by City Developments in second place. In the REIT and Business Trust Category, the mean score stands at 86.6 points, with CapitaLand Ascott Trust in the lead. Among the REITs/business trusts, CapitaLand related entities generally did well, with three from the group placing among the top five.
The SGTI is an annual study jointly conducted by CPA Australia, the Centre for Governance and Sustainability (CGS) at the National University of Singapore (NUS) Business School, and the Singapore Institute of Directors (SID). The index ranks SGX-listed companies on their corporate government practices as well as the timeliness, accessibility and transparency of their financial disclosures. The assessment framework is continuously reviewed and updated to align with the latest leading practices in corporate governance.
This year, a revised framework was introduced for the SGTI, placing greater emphasis on sustainability disclosures and practices. The revisions accounted for the substantial changes in Singapore’s corporate governance landscape. These changes include the launch of the Director Accreditation framework by SID and the incorporation of sustainability concerns into corporate governance.
As regulations and corporate governance practices mature in Singapore, several existing questions with disclosure rates reaching 100% due to mandatory compliance were removed. Stricter assessment criteria were also applied to the remaining questions. With these comprehensive changes, score comparisons with previous years can be misleading. Moving forward, the revised framework ensures that the index remains dynamic, offering greater flexibility to align with changing regulatory requirements.
Mr Cheung Pui Yuen, Singapore Divisional President, CPA Australia said, “We applaud the commendable progress that Singapore-listed companies have made in shareholder rights and integrating ESG principles into their business, reflecting their ongoing commitment to sustainability and transparency. The enhancements to the SGTI framework highlight the dynamic evolution of our corporate governance landscape and underscore the importance of robust corporate governance and sustainable practices.”
Professor Lawrence Loh, Director of the Centre for Governance and Sustainability, National University of Singapore Business School, said, “This year’s SGTI starts a new dynamic approach for company assessment. With the evolving regulatory requirements particularly in sustainability and the advent of new frameworks such as director competency, it is essential for the evaluation to keep in tandem with market changes. We are pleased that our listed companies have continued to perform commendably overall, even if sustainability poses additional challenges for governance.”
This year’s index involves a holistic assessment of corporate governance disclosures and practices of 477 Singapore-listed companies in the General Category and 43 trusts in the REIT and Business Trust Category, based on their annual reports released by 31 May 2024.
“Board directors must be able to adapt and transform their organisations amidst the rapidly evolving business landscape. The Director Accreditation programme by SID focuses on the skills, knowledge and competencies that boards need to have to steer their companies in this increasingly complex world,” said Mr Yeoh Oon Jin, Chairman of the Singapore Institute of Directors.
“We commend the continuous improvement of our listed companies and trusts, which showcases their commitment to robust governance and transparency. As we continue to advance in these areas, SID remains dedicated to supporting and guiding directors in navigating these critical changes to uphold the highest standards of corporate integrity.”
Findings for the General Category
In the General Category, SATS achieved first position, followed by City Developments in second. United Overseas Bank placed third, while Keppel Limited and Singapore Telecommunications tied for fourth position.
The overall scoring system of the General Category comprises five pillars, also known as BREAD Framework: Board Responsibility, Rights of Shareholders, ESG and Stakeholders, Accountability and Audit, and Disclosure and Transparency.
In 2024, companies demonstrated robust performance in disclosures relating to shareholder rights (78%), followed by sustainability-related matters (67%), and accountability and audit (65%).
In terms of company size, big-cap companies with market capitalisations over S$1 billion outperformed mid/small-cap companies. The most substantial differences were in disclosure and transparency, where large-cap companies scored 17 percentage points higher, followed by sustainability and board responsibilities, which were 15 percentage points higher. No size effect was observed in accountability and audit.
Findings for the REIT and Business Trust Category
This year marks the eighth annual SGTI assessment for REITs and Business Trusts since its launch in 2017. In the REIT and Business Trust Category, CapitaLand Ascott Trust took first position and CDL Hospitality Trusts placed second. CapitaLand Ascendas REIT and CapitaLand Integrated Commercial Trust ranked third and fourth respectively, while Netlink NBN Trust rounded out the top five entities.
In 2024, REITs and Business Trusts exhibited strong performance in disclosures relating to shareholder rights (86%). The scores for accountability and audit, disclosure and transparency, and sustainability-related matters are comparable between 77%-79%.
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About CPA Australia
CPA Australia is one of the largest professional accounting bodies in the world, with more than 173,000 members in over 100 countries and regions, including more than 8,600 members in Singapore. CPA Australia has been operating in Singapore since 1954. Our core services include education, training, technical support and advocacy. CPA Australia provides thought leadership on local, national and international issues affecting the accounting profession and public interest. We engage with governments, regulators and industries to advocate policies that stimulate sustainable economic growth and have positive business and public outcomes. Find out more at cpaaustralia.com.au.
About NUS Business School
The National University of Singapore (NUS) Business School is known for providing management thought leadership from an Asian perspective, enabling its students and corporate partners to leverage global knowledge and Asian insights.
The school has consistently ranked first in Asia by independent publications and agencies, such as The Financial Times, and Quacquarelli Symonds, in recognition of the quality of its programmes, faculty research and graduates.
The school is accredited by AACSB International (Association to Advance Collegiate Schools of Business) and EQUIS (European Quality Improvement System), endorsements that the school has met the highest standards for business education.
Established in 2010, the Centre for Governance and Sustainability (CGS) is part of the NUS Business School. Its mission is to spearhead high-impact research on corporate governance and sustainability in Singapore and the Asia-Pacific and serves as the national assessor for the corporate sustainability and governance performance of listed companies in Singapore.
In tandem with growing demands from consumers and investors that financial returns are achieved with integrity, backed with environmental and social considerations, CGS has a slew of research focusing on sustainability reporting in Asia Pacific, sustainable banking, nature reporting, and climate reporting in ASEAN.
More information about CGS can be accessed at https://bschool.nus.edu.sg/cgs/.
About Singapore Institute of Directors
The Singapore Institute of Directors (SID) is Singapore’s national association for company directors. Established in 1998, our mission is to transform boards and empower board directors to be champions of good governance. SID works with regulators and partners to serve as the voice for directors and facilitates consultations and feedback sessions on regulatory matters. In advocating for good governance, SID advances thought leadership and benchmarking research and indices on corporate governance and directorship issues.
SID builds competencies and capabilities to enhance boardroom skills of directors for informed decision-making. An accreditation programme serves to set standards for and showcase best practices of good governance. The organisation supports members on their directorship journey with courses, workshops, advanced masterclasses, forum discussions and pit-stops. SID connects and strengthens the ecosystem with initiatives such as mentoring and networking. The Governance for Good Alliance is an initiative by SID to bring together key stakeholders who help advance our vision for every board director to be a champion of good governance.
For more information, please visit the website and LinkedIn page.
For media enquiries, please contact:
Kristy TEO Marketing and Communications Manager CPA Australia Tel: +65 6671 6527 Email: kristy.teo@cpaaustralia.com.au
Natalie LAW Assistant Manager, Corporate Communications NUS Business School Tel: +65 6601 1206 Email: natalielaw@nus.edu.sg
YANG Wai Wai Head, Communications and Research Singapore Institute of Directors Tel: +65 6011 0102 Email: waiwai.yang@sid.org.sg