Latest news with #Sias
The Star
26-06-2025
- Business
- The Star
Retail investors in Singapore face problems exercising their rights
About a quarter of the respondents said they met challenges in accessing company financial reports and disclosures. — The Straits Times SINGAPORE: More than a third of retail investors, or 37%, experienced difficulties in exercising their rights, according to a new survey out on June 25. The survey, which was commissioned in 2024 by the Securities Investors Association (Singapore), or Sias, included the responses of 197 people in a bid to track the progress of investors' rights in Singapore and see what more needs to be done. Sias is the main investor-led organisation dedicated to investor education and the advocacy of retail investors' rights. It engages companies and regulators to improve corporate governance and transparency. The survey was also conducted with support from the Singapore Institute of Technology (SIT) and the Singapore University of Social Sciences. Of the respondents who said they faced difficulties in exercising their rights, 41% felt their voices were not heard enough when companies made decisions. Another 24% said they met challenges in accessing company financial reports and disclosures. About 22% also reported encountering difficulties when voting at shareholder meetings because of unclear procedures and a lack of information. Lastly, 13% said they experienced delays in receiving dividends and other things that shareholders are entitled to. SIT associate professor of accounting Kevin Ow Yong said: 'From an accounting and finance perspective, it is imperative that there are adequate safeguards to protect investors so as to improve and maintain investor confidence towards Singapore Exchange-listed companies.' The report observed that there is room for further reforms to plug gaps in investor protection under the existing framework. The opportunity for reform has also cropped up, with the ongoing review by the Equities Market Review Group, which was set up in 2024 to boost Singapore's equities market. 'While it is important for regulation to be right-sized in order to improve and increase the quality of listings in Singapore, this should not be at the expense of investor protection, which is important to support both retail and institutional investment in Singapore's equities market,' the report said. Among the things investors wanted were having better mechanisms for investor redress and dispute resolution, and ensuring fair and equal access to information. — The Straits Times/ANN
Singapore Law Watch
26-06-2025
- Business
- Singapore Law Watch
More than a third of retail investors in S'pore face problems exercising their rights: Survey
More than a third of retail investors in S'pore face problems exercising their rights: Survey Source: Straits Times Article Date: 26 Jun 2025 Author: Sue-Ann Tan About a quarter of the respondents said they met challenges in accessing company financial reports and disclosures. More than a third of retail investors, or 37 per cent, experienced difficulties in exercising their rights, according to a new survey out on June 25. The survey, which was commissioned in 2024 by the Securities Investors Association (Singapore), or Sias, included the responses of 197 people in a bid to track the progress of investors' rights in Singapore and see what more needs to be done. Sias is the main investor-led organisation dedicated to investor education and the advocacy of retail investors' rights. It engages companies and regulators to improve corporate governance and transparency. The survey was also conducted with support from the Singapore Institute of Technology (SIT) and the Singapore University of Social Sciences (SUSS). Of the respondents who said they faced difficulties in exercising their rights, 41 per cent felt their voices were not heard enough when companies made decisions. Another 24 per cent said they met challenges in accessing company financial reports and disclosures. About 22 per cent also reported encountering difficulties when voting at shareholder meetings because of unclear procedures and a lack of information. Lastly, 13 per cent said they experienced delays in receiving dividends and other things that shareholders are entitled to. SIT associate professor of accounting Kevin Ow Yong said: 'From an accounting and finance perspective, it is imperative that there are adequate safeguards to protect investors so as to improve and maintain investor confidence towards Singapore Exchange-listed companies.' The report observed that there is room for further reforms to plug gaps in investor protection under the existing framework. The opportunity for reform has also cropped up, with the ongoing review by the Equities Market Review Group, which was set up in 2024 to boost Singapore's equities market. 'While it is important for regulation to be right-sized in order to improve and increase the quality of listings in Singapore, this should not be at the expense of investor protection, which is important to support both retail and institutional investment in Singapore's equities market,' the report said. Among the things investors wanted are having better mechanisms for investor redress and dispute resolution, and ensuring fair and equal access to information. Investors also said they wanted more transparency in corporate governance practices and to strengthen safeguards against insider trading and market manipulation. Strengthening shareholders' voting rights was also important to investors. The largest proportion of investors felt that more can be done to make information more accessible. The report noted: 'These respondents elaborated that they felt their rights were compromised due to a lack of communication about significant changes in business strategy and insufficient disclosure on company investments.' For instance, one company did not inform investors about a major strategy shift, particularly after being inactive in one of its primary businesses for several years. Shareholders then raised these concerns at annual general meetings, demanding clearer communication about the company's intentions. 'In this instance, the feedback led to improved communication, with the company directly addressing their concerns, leading to enhanced transparency and investor confidence,' the report said. It noted that the fact that some respondents want greater transparency in corporate governance practices also indicates a growing demand for greater openness, accountability and clarity in how companies are managed and directed. SUSS School of Law lecturer Lance Ang said: 'The recommendations in the study are particularly pertinent in the light of the shift towards the 'disclosure-based regime' announced by the Equities Market Review Group in its ongoing review of the regulatory framework to attract listings.' He added that a disclosure-based approach that forms the basis of informed investor decision-making must be supported by private and public enforcement of disclosure breaches. These can enable investors to get compensation for losses, as well as ensure shareholders have access to information and investor education, Mr Ang said. SUSS School of Business senior lecturer Tan Eng Joo noted that the findings suggest that enforcement alone is not enough to empower investors, but that it is also encouraging that 'no single area stands out as particularly deficient'. 'This reflects a balanced approach within existing investor protection mechanisms, supporting efforts to build a resilient and inclusive capital market where all investors feel heard, engaged and safe,' Dr Tan said. Sias president David Gerald said that over the past decade, the organisation has seen a shift in Singapore where more investors are more proactive in asserting their rights. 'Through our persistent advocacy, constructive dialogue with regulators and listed companies, and empowering investors with knowledge, Sias has helped shape a more engaging investing community,' he said. 'This journey reflects our unwavering belief that protecting investor rights is fundamental to building trust and resilience in our capital markets.' Sue-Ann Tan is a business correspondent at The Straits Times covering capital markets and sustainable finance. Source: The Straits Times © SPH Media Limited. Permission required for reproduction. Print
Straits Times
25-06-2025
- Business
- Straits Times
More than a third of retail investors in S'pore face problems exercising their rights: Survey
About a quarter of the respondents said they met challenges in accessing company financial reports and disclosures. ST PHOTO: LIM YAOHUI More than a third of retail investors in S'pore face problems exercising their rights: Survey SINGAPORE - More than a third of retail investors, or 37 per cent, experienced difficulties in exercising their rights, according to a new survey out on June 25. The survey, which was commissioned in 2024 by the Securities Investors Association (Singapore), or Sias, included the responses of 197 people in a bid to track the progress of investors' rights in Singapore and see what more needs to be done. Sias is the main investor-led organisation dedicated to investor education and the advocacy of retail investors' rights. It engages companies and regulators to improve corporate governance and transparency. The survey was also conducted with support from the Singapore Institute of Technology (SIT) and the Singapore University of Social Sciences (SUSS). Of the respondents who said they faced difficulties, 41 per cent felt their voices were not heard enough when companies made decisions. Another 24 per cent said they met challenges in accessing company financial reports and disclosures. Some 22 per cent also reported encountering difficulties when voting at shareholder meetings because of unclear procedures and a lack of information. Lastly, 13 per cent said they experienced delays in receiving dividends and other things that shareholders are entitled to. SIT Associate Professor of Accounting Kevin Ow Yong said: 'From an accounting and finance perspective, it is imperative that there are adequate safeguards to protect investors so as to improve and maintain investor confidence towards Singapore Exchange-listed companies.' The report observed that there is room for further reforms to plug gaps in investor protection under the existing framework. The opportunity for reform has also cropped up, with the ongoing review by the Equities Market Review Group, which was set up in 2024 to boost Singapore's equities market. 'While it is important for regulation to be right-sized in order to improve and increase the quality of listings in Singapore, this should not be at the expense of investor protection, which is important to support both retail and institutional investment in Singapore's equities market,' the report said. Among the things investors wanted include having better mechanisms for investor redress and dispute resolution, and ensuring fair and equal access to information. Investors also said they want more transparency in corporate governance practices and to strengthen safeguards against insider trading and market manipulation. Strengthening shareholders' voting rights was also important to investors. The largest proportion of investors felt that more can be done to make information more accessible. The report noted: 'These respondents elaborated that they felt their rights were compromised due to a lack of communication about significant changes in business strategy and insufficient disclosure on company investments.' For instance, one company did not inform investors about a major strategy shift, particularly after being inactive in one of its primary businesses for several years. Shareholders then raised these concerns at annual general meetings, demanding clearer communication about the company's intentions. 'In this instance, the feedback led to improved communication, with the company directly addressing their concerns, leading to enhanced transparency and investor confidence,' the report said. It noted that the fact that some respondents want greater transparency in corporate governance practices also indicates a growing demand for greater openness, accountability and clarity in how companies are managed and directed. SUSS School of Law lecturer Lance Ang said: 'The recommendations in the study are particularly pertinent in light of the shift towards the 'disclosure-based regime' announced by the Equities Market Review Group in its ongoing review of the regulatory framework to attract listings.' He added that a disclosure-based approach that forms the basis of informed investor decision-making must be supported by private and public enforcement of disclosure breaches. These can enable investors to get compensation for losses, as well as ensure shareholders have access to information and investor education, he said. SUSS School of Business senior lecturer Tan Eng Joo noted that the findings suggest that enforcement alone is not enough to empower investors, but that it is also encouraging that 'no single area stands out as particularly deficient'. 'This reflects a balanced approach within existing investor protection mechanisms, supporting efforts to build a resilient and inclusive capital market where all investors feel heard, engaged, and safe,' Dr Tan said. Sias president David Gerald said that over the past decade, the organisation has seen a shift in Singapore where more investors are more proactive in asserting their rights. 'Through our persistent advocacy, constructive dialogue with regulators and listed companies, and empowering investors with knowledge, Sias has helped shape a more engaging investing community,' he said. 'This journey reflects our unwavering belief that protecting investor rights is fundamental to building trust and resilience in our capital markets.' Sue-Ann Tan is a business correspondent at The Straits Times covering capital markets and sustainable finance. Join ST's Telegram channel and get the latest breaking news delivered to you.
Business Times
05-06-2025
- Business
- Business Times
Sias calls for Singapore Paincare shareholders to await IFA opinion on privatisation offer
[SINGAPORE] The Securities Investors Association (Singapore), or Sias, is urging minority shareholders of Singapore Paincare to hold off on selling their shares amid the proposed privatisation deal. In a statement released on Wednesday (Jun 4), Sias noted that the company could be worth up to S$0.37 per share, which is more than double its privatisation offer of S$0.16 per share. Sias recommends that shareholders, especially those who can afford to wait, not make any moves until the independent financial adviser (IFA) report is released. It also noted that the deal is via a scheme of arrangement, which means that approval of the scheme has to first be approved by a majority vote at the scheme meeting – and by more than 75 per cent in value of the shares held by shareholders voting. There have been past instances where shareholders sought slight gains by selling their shares in the open market before IFA's opinion was released, said Sias. 'Shareholders who sold (shares in the open market) will not have recourse if there is a subsequent upward revision in the offer price,' Sias warned. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up In its released statement, Sias highlighted that in July 2020, the medical services company listed at S$0.22 per share, when the Straits Times Index (STI) was trading at around 2,500. Now, when the STI is up by more than 50 per cent at 3,900, it wishes to delist at S$0.16 per share. Furthermore, its initial public offering (IPO) price was S$0.22, a 123 per cent premium to the group's unaudited net asset value (NAV) of about S$0.0986 per share on Dec 31, 2019. This was based on the post-placement share capital and after adjusting for net proceeds due to the company from the placement. Now, the price offered under the scheme of arrangement is instead at a slight discount to the company's NAV of S$0.166 per share as at Jun 30, 2024. Sias also noted that Singapore Paincare's unaudited NAV as at end-December 2024 stood at S$0.163 per share. Therefore, if the same IPO premium was to be applied now, the privatisation price should be around S$0.36 to S$0.37 per share. Sias further noted that 'well-managed healthcare companies generally trade at premiums to their NAV'. 'Sias would like to remind all offerors to treat shareholders fairly, and not to forget their promises made at the IPO. As such, they should therefore make offers that are fair and reasonable when subsequently delisting,' said David Gerald, founder, president and chief executive of Sias. 'It is also worth remembering that for a delisting to take place, the IFA has to conclude that the offer is both fair and reasonable,' he added. 'All told, it would therefore be advisable to wait for the IFA's opinion.'
Business Times
05-06-2025
- Business
- Business Times
Singapore Paincare up 12.1% as Sias urges shareholders to await IFA report
[SINGAPORE] Shares of Singapore Paincare rose on Thursday (Jun 5), a day after the Securities Investors Association (Singapore), or Sias, said the medical services company could be worth more than double its privatisation offer price. As at 4.19 pm, the counter was trading at S$0.176, 12.1 per cent or S$0.019 above the previous closing price of S$0.157 on Wednesday, with 15.2 million shares transacted. This was its highest price in the year to date. It closed on Thursday 8.3 per cent or S$0.013 higher at S$0.17, with 17.3 million shares having changed hands. On Wednesday, Sias urged minority shareholders of Singapore Paincare to hold off selling their shares amid an acquisition bid from Advance Bridge Healthcare, a management consultancy for healthcare services. Sias noted that the company could be worth around S$0.36 to S$0.37 a share, more than double the S$0.16 a share privatisation offer price. It recommended that shareholders wait and refrain from taking action until the report by the independent financial adviser (IFA) is released. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up 'If the shares are sold on the open market, shareholders who sold will not have recourse if there is subsequent upward revision in the offer price,' Sias warned. There have been past instances when shareholders sought slight gains and sold their shares on the open market before the IFA issued its report, it noted. Moreover, the S$0.37 per share offer price is at a 'slight discount' to the company's audited net asset value (NAV) per share of S$0.166 as at Jun 30, 2024, it said. The association highlighted that Singapore Paincare made its July 2020 trading debut during Covid-19 with an initial public offering (IPO) price of S$0.22 per share, when valuations were depressed and when the Straits Times Index (STI) was trading at around 2,500 points. The IPO price of S$0.22 was a 123 per cent premium to the group's unaudited NAV per share of about S$0.0986 on Dec 31, 2019, based on the post-placement share capital and after adjusting for net proceeds due to the company from the placement. 'It now wishes to delist at S$0.16 per share when the STI is trading at around 3,900 points... If the same IPO premium were to be applied now, the privatisation price should be around S$0.36 to S$0.37,' Sias said. 'For a delisting to take place, the IFA has to conclude that the offer is both fair and reasonable... it would therefore be advisable to wait for the IFA's opinion.'
