Review of corporate governance disclosures in Singapore

Corporate governance disclosures in Singapore

This report highlights the areas that listed companies did well in and the areas of improvement under the comply-or-explain disclosure regime in Singapore.

Review of corporate governance disclosures in Singapore

KPMG in Singapore was commissioned by the Singapore Exchange (SGX) to examine the state of corporate governance disclosures among mainboard-listed companies here. The study reviews the extent of companies’ compliance with the corporate governance requirements under the Singapore Code of Corporate Governance, the SGX Disclosure Guideline Document and the SGX Listing Rule 1207 (10). A total of 545 mainboard-listed companies’ annual reports were reviewed for the study. Suggestions on how companies can improve are also included.


Key findings

The study examined the presence and quality of disclosures in relation to the Singapore Code of Corporate Governance 2012, the SGX Disclosure Guidance Document 2015 and SGX Listing Rule 1207 (10). The key findings were:

  1. The state of disclosures is good with room for improvement.
  2. Companies achieved an average score of 60%.
  3. Large-capitalisation companies outperformed Mid- and Small-cap companies. 
  4. Pillar 3: Accountability and Audit received the highest average score (63%).
  5. Pillar 2: Remuneration Matters received the lowest average score (53%).
  6. Improvements in disclosures were noted across all pillars and all companies (regardless of size). Key areas of deficiency included:
    • Board diversity
    • Remuneration
    • Board and Executive performance criteria
    • Adequacy and effectiveness of risk management and internal controls
    • Internal Audit
    • Investor Relations 


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