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 waiver and applications for share placement.
This year, 36 companies made their debut on the Fast Track, SGX said yesterday.
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 firms 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. This means firms that entered Fast Track in April 2018 will continue to be on the list until the review in 2020. 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.
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95
Total number of firms on the Fast Track, including this year's entrants and the 59 firms that have remained on the list since April last year.
SGX RegCo chief executive Tan Boon Gin noted that the 11 per cent of Catalist-listed firms on the Fast Track is an indicator that high corporate governance standards are "achievable by companies mature and high-growth, big and small".
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 firms have shown keen interest to be in the programme, he said.
