Good morning,
Mr Yeoh Oon Jin, Chairman, Singapore Institute of Directors
SID Council Members
Ladies and Gentlemen
1. I am pleased to join you today at the inaugural SID Chairpersons Guild forum.
2. Singapore’s equity market has seen some encouraging developments in the past year, with improvements in trading volume and valuations. Measures rolled out by the Equities Market Review Group sought to solidify the foundations of a healthy, well-functioning market.
a. Investor interest and demand, including in small and mid-cap stocks, have been raised through the EQDP and the enhanced grant support for research coverage.
b. For listed companies, regulations have been streamlined and are more targeted.
c. For brokers, we will support initiatives that enable them to offer broader value-added services, to reach their clients and serve them better.
3. The stage, the lighting, the costumes, the music. We have gotten all of these ready, for all of you – Chairmen and Board Directors of listed companies - to now play your parts. We want all our listed companies to be in a position to shine, and we hope that some of our listed companies will grow into superstars.
4. The next stage is critical. It is not something policymakers can make happen on our own. We need the whole ecosystem to work together. New high-quality listings, listed companies communicating new strategies for value creation, and more investors being drawn in. These three developments will form a self-reinforcing dynamic for the sustained growth and deepening of the market.
5. Chairmen and Board Directors of listed companies play a critical role in this next stage. When you create value for your companies and communicate well to the market, you will also create a positive dynamic for the equity market as a whole.
Board practices in value-creating companies
6. We know the fundamental elements of value creation. There is a body of research around corporate performance that we can draw on. Let me just highlight a few key areas of research regarding the important role of Boards and management in leading and driving value creation.
a. First, companies should be grounded in strong governance (CG) practices and share more about their practices with investors. A recent study
b. Second, companies should implement disciplined capital allocation processes. Strong boards are disciplined stewards of capital. They ensure the right resources are allocated to initiatives that generate value and are prepared to adjust strategies and redeploy or return capital when it is not creating the needed value. In short, invest more in success and don’t settle for mediocrity.
i. One notable study found that companies which were more deliberate about reallocating capital had, on average, higher shareholder returns
ii. Some companies may be concerned about shorter-term earnings uncertainty if resources were allocated to long-term priorities. These concerns can be overcome. A recent study
c. Third, companies should have a well-developed strategy for engaging investors.
i. This extends beyond disclosures, to more comprehensive efforts to strengthen companies’ Investor Relations capabilities.
ii. One study
iii. The study found that small and mid-cap companies that had sharper, well-articulated Investor Relations strategies generally saw increases in disclosure, media coverage, trading activity, institutional investor ownership and analyst following, resulting in positive impact on valuations.
MAS’ support to build good board practices
7. I cannot emphasise enough that strong board leadership can influence strong shareholder outcomes. Many of you already have in place strong corporate governance, business strategy and investor communication practices. We want more listed companies to do so.
8. MAS will support the efforts of chairpersons and boards in putting in place such good practices in place. Let me share three ways we will provide this support.
Building capabilities to unlock value
9. First, as part of the Value Unlock programme, MAS and SGX launched two targeted grants to strengthen listed companies’ capabilities. We aim to enable key capabilities in corporate strategy, financial management and investor relations. The grants have two aspects
10. The first is to support learning and training. We recognise companies are at different stages of this journey, and the two grants will address different needs.
a. The Equip Grant addresses foundational training needs - the essential building blocks for effective value creation.
b. The Elevate Grant is for companies ready to take on deeper shareholder engagement and value creation activities. It provides targeted support, connecting companies with professional consultants to refine strategy, sharpen market positioning and strengthen shareholder communications.
11. The second aspect is practical application. Capability must translate to actions which are visible to investors and the market.
a. Equip Grant recipients must commit to participate in investor and media engagements or maintain an active presence on digital platforms, and participate in investor network events.
b. Elevate Grant recipients will need to go further, to publish their shareholder value enhancement plans, key performance targets, and progress reports.
c. The SGX Investor Fair is expected to take place by year-end or early next year. It provides a dedicated platform for companies, including grant recipients, to showcase their improvements to corporate governance and long-term value creation.
12. I would like to be very clear about this point. The Value Unlock programme is not just about doing training and giving out grants. It is very much about bringing about transformation in corporate practices and concrete outcomes. We believe the best results are achieved when listed companies own the process and outcomes, and work in partnership with us. We will be closely tracking the progress and outcomes, and will also take feedback as we implement.
Setting norms for value creation
13. Second, we want to establish broad industry norms for value creation practices.
14. We are reviewing the Code of Corporate Governance, or CG code, to uplift market-wide expectations and norms for Boards’ role in value creation and investor engagement. The review is done in conjunction with SGX and the Corporate Governance Advisory Committee, and will consider possible changes from two angles.
15. The review will look at how the CG Code can place more emphasis on Boards’ responsibilities for shareholder value creation and investor engagement.
a. For example, we will consider how the principles of the Code can be supplemented with practical guidance on the topic of value creation. Guidance could be given as to how Boards provide strategic oversight, and challenge to management on issues such as capital efficiency, and whether market valuation adequately reflects a company’s earnings potential and value.
16. The Code review will also look to enhance provisions relating to corporate culture, board effectiveness and risk management. An enhanced Code will help equip boards to better steward long-term shareholder value and build deeper investor confidence.
Enhanced disclosures
17. The third way in which MAS and SGX will support transformation in listed companies is through enhancements to mandatory disclosures.
18. To be clear, disclosures have a role in fostering shareholder communication. However, mandatory disclosures on its own may be insufficient to drive deep and sustainable transformation. It carries the risk of being a box ticking exercise, if there is no real ownership by company leadership, with no sustainable or meaningful benefit for investors or the company.
19. Hence, disclosure requirements are the third plank of our approach, complementing the first plank of building capabilities through the Value Unlock programme, and the second plank, of raising the norms for corporate governance and value creation through the CG Code.
a. SGX will consider mandatory disclosures relevant to shareholder value such as dividend policy, investor relations policy and the link between remuneration and value creation.
b. SGX has recently issued a Regulator’s Column, which clarifies the expectations and encourages companies to provide forward guidance. SGX is working with the industry to develop additional resources, that support companies in preparing meaningful forward-looking disclosures.
20. Alongside the review of disclosure requirements and guidance, we have enhanced MAS’ GEMS research scheme to incentivise greater coverage of companies that enhanced their disclosures. Companies that enhance the quality of their disclosures will better position themselves to be covered by research analysts, widening their reach to investors.
Conclusion
21. As chairpersons, directors and senior leaders, you can lead the transformation of your companies. Many of you have expressed interest in or already applied for the Value Unlock programmes.
22. Some companies are already veterans at shareholder value creation and have established investor trust – please share your experiences with the community of company leaders here. Together, we can raise Singapore's corporate governance standards and build an equity market where strong fundamentals drive sustainable value creation.
23. This is our shared opportunity – let’s build on the good start we have made to establish a sustainable, flourishing market for companies and investors.
24. Thank you very much.
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[1] The impact of corporate governance on firm value: Understanding the role of strategic change. International Review of Economics & Finance, Volume 103, 2025.
[2] Corporate long-term behaviours: How CEOs and boards drive sustained value creation – McKinsey & Company, FCLTGlobal, 2020. See also How to put your money where your strategy is, McKinsey Quarterly, 2012.
[3] Stewarding Value – Unlocking Market Potential Through Engagement – Stewardship Asia Centre, 2025.
[4] Investor relations, firm visibility and investor following, Brian J. Bushee, The Wharton School University of Pennsylvania, Gregory S. Miller, Graduate School of Business Administration, Harvard University, 2005.
