Singapore investors and corporations share a desire for greater transparency, with six in 10 of them believing there is room for improvement in company disclosures on strategy and risk, according to a recent report.

While more than 80% of Singapore Exchange ( SGX )-listed companies engage with significant investors at least quarterly, only 18% of investors rate such disclosures as “very transparent”, finds the research report by Stewardship Asia Centre ( SAC )’s Stewarding Value: Unlocking Market Potential Through Engagement research report, which concludes that quality engagement – not quantity – is what builds trust, attracts capital and supports sustainable valuations.

The report, which draws on surveys and interviews with over 250 corporate leaders and institutional investors, explores how engagement quality shapes trust, valuation and long-term company performance and highlights five major findings.

Engagement efforts have impact on valuations

Nine in 10 investors and corporations, the report notes, agree that engagement affects valuation decisions. Although most describe its impact as “moderate” rather than “significant”, 95% of investors say they are willing to tolerate short-term underperformance if companies communicate a clear and credible long-term strategy.

Alignment of motivation is critical

While 25% of investors rank company strategy as their top query, only 14% of corporations, the report shares, recognize this as a key concern. Corporations, on the other hand, perceive dividends as investors’ main priority. Likewise, 29% of investors view management vision and execution as very significant in shaping their investment view, but only 16% of corporations recognize this. The findings indicate that alignment of motivation is critical for meaningful dialogue that speaks to investors’ true concerns.

Simplicity and execution matter

Investors value clarity, honesty and consistency over complex reporting. Nearly half of investors report a lack of timely information as a key challenge, despite most disclosures being deemed useful. Interviewees suggested that in the longer term, digital tools, such as investor apps, searchable dashboards and virtual investor days, can enhance accessibility.

Transparency drives trust

Nearly 70% of investors rate companies listed on the SGX as “somewhat transparent”, highlighting room for improvement. Notably, investors say they are willing to accept short-term underperformance if companies communicate their long-term strategies and risks openly. This shows that compliance alone is not enough: meaningful engagement demands proactive disclosure, honest discussion of challenges and credible, forward-looking plans.

Long-term orientation creates value

Both investors and corporations are in overwhelming agreement on the value of disclosing a long-term strategy. They also recognize that having forward-looking plans provides a better understanding of the value of a company. However, investors show a slightly higher proportion of “strongly agree” responses compared to corporations. This may suggest a preference for a more cautious approach by corporations.

Alongside the report’s findings, SAC created an accompanying Engagement Playbook – developed with contributions from practitioners – that outlines practical “good hygiene” principles, such as regular analyst briefings, accessible leadership and proactive digital disclosure. Companies are encouraged in the report to leverage the playbook to strengthen their investor engagement practices and build long-term shareholder confidence.

“Our findings show that while most companies engage regularly, many still approach it as a compliance requirement rather than a strategic opportunity,” says Sunil Puri, SAC’s head of research and engagement. “Engagement that is transparent, consistent and anchored in long-term strategy builds confidence. It helps investors look past short-term performance and value companies for their purpose, leadership and future potential.”

Ng Yao Loong, SGX Group’s head of equities, adds: “The findings show that effective investor engagement is, first and foremost, a strategic advantage for listed companies and not just about meeting regulatory requirements. By stepping up to communicate clearly and consistently on long-term goals, and making leadership more accessible, companies build trust and harness their market potential. As more firms embrace these practices, investor confidence will deepen; and companies, in turn, benefit from increased liquidity and lower cost of capital.”