36 companies make debut on 2019's SGX Fast Track programme
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The Fast Track programme was started by the Singapore Exchange Regulation in April last year to reward companies with good corporate governance.
ST PHOTO: KELVIN CHNG
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SINGAPORE - Christmas came early this year for companies that found themselves on the Singapore Exchange (SGX) Fast Track programme list.
The programme was started by the Singapore Exchange Regulation (SGX RegCo) in April last year to reward companies with good corporate governance.
The incentive comes in the form of prioritised clearance for selected corporate-action submissions to SGX RegCo, including circulars, requests for waivers and applications for share placement.
This year, 36 companies made their debut on the Fast Track, the SGX said on Tuesday (Nov 26).
Most are mainboard-listed firms while three are from the Catalist: Asian Healthcare Specialists, SLB Development and Union Gas Holdings. This is in addition to the 59 companies that remained on the list since April last year, bringing the total number on the Fast Track to 95.
Starting this year, companies will stay on the Fast Track for two review cycles, said SGX RegCo head of listing compliance June Sim, who was speaking at the 2019 SGX Fast Track companies launch.
This means firms that entered Fast Track in April 2018 will continue to be on it until the review in 2020. The new entrants, on the other hand, will be reviewed in 2021.
Selection is based on internal and external criteria focused on corporate governance standards, compliance track record and the quality of the company's submissions.
SGX RegCo chief executive Tan Boon Gin noted that the 11 per cent of Catalist-listed companies on the Fast Track is an indicator that high corporate governance standards are "achievable by companies mature and high-growth, big and small".
He also noted that media reports tend to emphasise errant companies, making it tempting for regulators to go hard on all companies.
"There is a tendency, I feel, to focus on the bottom end of the market rather than the top end, even when there is much to celebrate at the top," Mr Tan said.
He had previously mentioned that it is perhaps time for regulators to move away from the "stick" and instead offer "carrots" to encourage companies to raise their corporate governance game.
And this appears to be paying off as companies have shown keen interest to be part of the programme, he said.
Companies that want to remain or be part of the 2020 list can expect more emphasis to be placed on sustainability reporting and stakeholder engagement.
