Singapore Inc is ‘cautiously optimistic’ but investors would rather have a number
Investors want forward guidance and the regulator is asking for it, but most listed companies are still not giving it
Singapore's stock market is experiencing a resurgence in investor interest, but this could be short-lived if companies fail to provide more forward guidance and demonstrate increased transparency, according to Singapore Exchange (SGX) RegCo chief executive Tan Boon Gin. Despite the regulator's push for improved investor relations, many listed companies are still reluctant to offer guidance.
AEM Holdings, a chip tester, recently raised its FY2026 revenue guidance by around a fifth, from S$550 million to S$600 million, and added full-year earnings per share guidance. This move led to a 10.7% increase in AEM shares. CGS International also raised its target price for AEM to S$14.79 from S$10.15, and lifted its FY2026 to FY2028 net profit estimates.
Regulators are now tightening listing rules to require companies to include a dividend policy, an investor relations policy, and describe their main shareholder engagement over the year. However, these rules do not force a company to promise a payout. SGX RegCo has been nudging for guidance to be more specific and quantitative, but many firms still view guidance as risky and prefer to avoid it. As a result, only 7 out of 31 companies interviewed by SGListCos described their guidance as highly quantitative.
Written by urgent.news from The Business Times - Companies & Markets's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
