New research by the Stewardship Asia Centre finds that transparent communication drives confidence and builds long-term market resilience.
A new report by the Stewardship Asia Centre (SAC) revealed that genuine, high-quality engagement between companies and investors is a key driver of market trust and sustainable corporate value.
The study, titled “Stewarding Value: Unlocking Market Potential Through Engagement”, found that six in ten investors and corporations see room for improvement in company disclosures, signalling a growing demand for transparency and alignment.
While more than 80% of Singapore Exchange (SGX)-listed companies engage major investors at least quarterly, only 18% of investors consider these disclosures “very transparent”. The findings underscore that quality, not frequency, of communication builds investor confidence and long-term valuations.
“Our findings show that while most companies engage regularly, many still approach it as a compliance requirement rather than a strategic opportunity,” said Sunil Puri, Head of Research and Engagement at SAC.
“Engagement that is transparent, consistent, and anchored in long-term strategy builds confidence. It helps investors look past short-term performance and value companies for their purpose, leadership, and future potential.”
Based on surveys and interviews with over 250 corporate leaders and institutional investors, the research aligns with the objectives of the Monetary Authority of Singapore’s (MAS) Equities Market Review Group (RG), which aims to enhance Singapore’s market competitiveness by strengthening shareholder engagement and transparency.
Key Findings
1. Engagement influences valuations.
Nine in ten investors and corporations agree that engagement affects valuation decisions. Although most describe the impact as “moderate”, 95% of investors say they are willing to tolerate short-term underperformance if companies articulate a credible long-term strategy.
2. Alignment matters.
The study reveals a disconnect between what investors prioritise and what companies believe they value. While 25% of investors cite company strategy as their top concern, only 14% of corporations recognise it as such. Conversely, many corporates believe dividends are the main investor focus, highlighting the need for clearer alignment of motivations.
3. Simplicity and execution are critical
Investors value clarity, honesty, and timeliness over volume of reporting. Nearly half cited a lack of timely information as a challenge, despite acknowledging the usefulness of disclosures. Digital tools such as investor apps, dashboards, and virtual investor days could make communication more accessible.
4. Transparency drives trust
Almost 70% of investors view SGX-listed companies as “somewhat transparent”, showing significant room for improvement. Investors express willingness to accept short-term performance dips if companies communicate their long-term strategies and risks openly.
5. Long-term focus creates value
Both investors and corporations agree that disclosing forward-looking plans enhances understanding of company value. However, investors show a stronger preference for such openness, indicating corporations could take a more proactive approach to long-term guidance.
Alongside the study, SAC released an Engagement Playbook outlining practical principles for effective investor relations, such as regular analyst briefings, accessible leadership, and proactive digital disclosure. The playbook aims to help listed companies strengthen engagement and build lasting trust.
“This report is a timely resource for listed companies in Singapore,” said Ng Yao Loong, Head of Equities at SGX Group. “Effective investor engagement is a strategic advantage, not just a regulatory task. By communicating clearly on long-term goals and making leadership more accessible, companies can strengthen trust, improve liquidity, and lower their cost of capital.”
Rajeev Peshawaria, CEO of Stewardship Asia Centre, said, “We are honoured to support the MAS and the Equities Market Review Group in this important research. Steward Leadership, as we define it at SAC, is the genuine desire and commitment to create a collective better future for stakeholders, society, future generations, and the environment.”
Read the full report here.
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