SGX Value Unlock Program – Leverage on the Programme to Enhancer Shareholder Value

This technical note summarizes critical findings from the Stewarding Value: Unlocking Market Potential Through Engagement research, a comprehensive study conducted on the state of investor-issuer engagement in the Singapore market.

The analysis, based on surveys of 220 institutional investors and corporate representatives, along with focus groups and in-depth interviews, provides a strategic framework for listed companies to refine their engagement practices and build sustainable shareholder value.

1. The Foundational Role of Engagement

The research confirms that while investor engagement is a prerequisite for market consideration, it is not a direct or sufficient driver of valuation. Engagement functions as a “hygiene factor”—it is necessary to build trust and reduce perceived risk, but it does not guarantee share price appreciation.

• Key Data Point: Over 80% of corporates engage with significant investors at least quarterly, yet both parties acknowledge that valuation outcomes remain heavily constrained by fundamentals such as market liquidity, entry price, and broader sentiment.

• Strategic Implication: Companies must set realistic internal expectations. Engagement should be viewed as a long-term investment in investor confidence and reputational capital, rather than a short-term lever for valuation uplift.

2. The Alignment Gap: Divergent Motivations

A significant disconnect exists between what companies believe investors want and what investors actually prioritize. This misalignment undermines the quality of dialogue.

• Analysis: Companies often approach engagement as a uniform broadcasting mechanism (e.g., disclosing financial results). Investors, however, seek tailored insights based on their specific lens—long-term, short-term, or activist. The failure to segment audiences and customize the narrative leads to “box-ticking” exercises that fail to generate value.

• Best Practice: Mature organizations equip their Investor Relations (IR) functions to tailor the narrative based on the intent and context of the investor, aligning strategic priorities before formal meetings.

3. Doing Simple Things Better

Investors are not demanding complex new reporting structures. Instead, they value clarity, interactivity, and timeliness.

• Communication Quality: While 87% of investors find SGX-listed disclosures useful, only 18% rate them as “very transparent.” The gap lies in execution.

• Preferred Channels: Investors place a premium on interactive and timely formats.

  • High Impact: Q&A sessions during quarterly earnings calls (42% rank among top three most useful sources).

  • Low Impact: Scripted portions of broker-sponsored conferences (only 8% rank among top three).

• Identified Gaps: Nearly half of investors cite a lack of timely information as a key challenge, while over 60% want better disclosure on strategy and risks.

• Recommendation: Firms should prioritize structured Q&A, maintain easily navigable digital IR hubs with searchable content, and provide context around results rather than simply restating financial figures.

4. Transparency vs. Disclosure

The research draws a crucial distinction between compliance-driven disclosure and trust-building transparency.

• The Distinction: Disclosure furthers rule compliance; transparency furthers relationships.

• Market Context: Unlike markets such as Japan and Korea, where governance structures (e.g., cross-shareholdings) are a primary concern, Singapore’s issue is not governance but the perceived opacity of management intent.

• Investor Sentiment: 95% of institutional investors are willing to look past short-term underperformance if a compelling long-term strategy is communicated transparently. Honest dialogue about challenges creates more credibility than perfect results delivered with no context.

5. The Premium on Forward-Looking Information

A persistent barrier to effective engagement is the reluctance of companies to share forward-looking information due to fear of regulatory repercussions or competitive leakage.

• The Risk of Opacity: Investors note that withholding guidance creates a vacuum. Analysts will make their own assumptions, which are often conservative and detrimental to valuations.

• Investor Demand: Over 90% of investors agree that a well-articulated, forward-looking strategy is valuable. Nearly half indicated that IPO prospectuses would be more attractive if they included more forward-looking disclosures.

• Recommendation: Companies should share directional management intent, risks, and opportunities. Investors seek to understand the “why” behind the strategy, not necessarily precise earnings forecasts. A shift in mindset—from “avoiding liability” to “building understanding”—is essential.

6. Strategic Recommendations for Issuers

To bridge the gap between current practices and effective engagement, companies should consider the following actions:

1. Adopt a Tiered Engagement Model: Differentiate engagement based on investor type (active vs. passive, long-term vs. short-term). Tailor the content and format of meetings to align with their specific objectives.

2. Implement a Structured Engagement Playbook: Standardize best practices for investor briefings. This includes consistent agendas, SGX Rule 703 reminders at the start of meetings, and timely publication of Q&A summaries to ensure fair access for all investors.

3. Enhance Digital Infrastructure: Move beyond static websites to create interactive platforms. This can include virtual investor days, searchable Q&A databases, and timely email alerts to improve accessibility and reduce information asymmetry.

4. Invest in Capacity Building: Recognize that effective engagement requires skilled communicators. Training for IR professionals, CEOs, and board directors should focus on storytelling, strategic articulation, and managing forward-looking dialogue.

5. Reframe the Partnership: Move away from viewing engagement as a compliance exercise. Proactive, two-way communication builds the trust necessary to weather periods of underperformance and is the most critical currency for sustaining long-term investor relationships.

Conclusion

The research underscores that effective engagement is not about doing more, but about doing simple things with greater intentionality, transparency, and strategic alignment. By closing the gap between what is disclosed and what is understood, Singapore-listed companies can build deeper investor trust, lower their perceived cost of capital, and ultimately strengthen their long-term valuation potential.

Source: SGX, 24 February 2026