Singapore reviewing quarterly financial reporting rule
[SINGAPORE] Singapore Exchange Ltd is reviewing a 13- year-old rule requiring listed companies to provide quarterly financial reports in light of moves by other regulatory jurisdictions including the UK to drop the practice.
"We are aware that there are strong proponents and arguments on both sides of the quarterly reporting debate," SGX said in an e-mail Monday. "The arguments need to be viewed against a regulatory landscape that has changed since 2003. We will consult the public if there is to be any change in the listing rules."
Companies with a market value of at least S$75 million (US$52 million) are currently required to provide quarterly financial reports.
Proponents of maintaining the rule argue that quarterly reports give more timely disclosure in volatile markets and instill financial discipline, said the bourse. Those calling for the scrapping of the requirement point to the risk of "short-termism" that quarterly reporting may encourage as well as the cost of compliance, it added.
Ron Sim, founder and chief executive officer of Osim International Ltd, Asia's largest maker of massage chairs, welcomed the SGX review.
"This is good news," Sim said in an e-mailed response to Bloomberg queries. "Singapore is a small market and should not be over-regulated and if we are to encourage local companies to create a regional market, then it is more important to help them than stifle their focus."
BLOOMBERG
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