Stewarding Value: How Quality Engagement Builds Trust and Unlocks Corporate Value

New Stewardship Asia Centre report reveals that genuine, transparent engagement drives investor confidence and sustainable valuations.

Press Release

28 October 2025

Singapore, 28 October 2025 – A research study by Stewardship Asia Centre (SAC) found that six in ten investors and corporations believe there is room for improvement in company disclosures on strategy and risk, highlighting a shared desire for greater transparency.

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.” The report concludes that quality engagement — not quantity — is what builds trust, attracts capital, and supports sustainable valuations.

Titled “Stewarding Value: Unlocking Market Potential Through Engagement,” the study draws on surveys and interviews with over 250 corporate leaders and institutional investors, exploring how engagement quality shapes trust, valuation, and long-term company performance.

The research aligns with the objectives of the Monetary Authority of Singapore’s (MAS) Equities Market Review Group (RG), which seeks to strengthen the competitiveness of Singapore’s equities market, facilitate market growth and foster investor confidence. Specifically, the RG has identified improving listed companies’ shareholder engagement capabilities as a key lever to strengthen Singapore’s capital markets, by reducing information asymmetry, raising investor interest and enhancing market discipline.

 

Engagement As Part of Strategy

“Our findings show that while most companies engage regularly, many still approach it as a compliance requirement rather than a strategic opportunity,” said Sunil Puri, Head of Research and Engagement at SAC. “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.”

 

Highlights from the Study

1. Engagement efforts have an impact on valuations
   The report reveals that nine in ten investors and corporations 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.
   
2. Alignment of motivation is critical
   While 25% of investors rank company strategy as their top query, only 14% of corporations recognise 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 recognise this. The findings indicate that alignment of motivation is critical for meaningful dialogue that speaks to investors’ true concerns.
   
3. 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.
   
4. Transparency drives trust
   Nearly 70% of investors rate companies listed on the Singapore Exchange (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 isn’t enough; meaningful engagement demands proactive disclosure, honest discussion of challenges, and credible, forward-looking plans.
   
5. Long-term orientation creates value
   Both investors and corporations are in overwhelming agreement on the value of disclosing a long-term strategy. They also recognise 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 to leverage the Engagement Playbook to strengthen their investor engagement practices and build long-term shareholder confidence.

“This report is a timely resource for listed companies in Singapore, as it complements SGX’s ongoing effort to profile our issuers and increase investor engagement. 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; companies in turn benefit from increased liquidity and lower cost of capital,” said Ng Yao Loong, Head of Equities, SGX Group.

Rajeev Peshawaria, CEO of SAC, said: “We are honoured to support the MAS and the Equities Market Review Group in this important research. Steward Leadership, as we define it at SAC, is the genuine desire and commitment to create a collective better future for stakeholders, society, future generations, and the environment. Guided by this, we hope SGX-listed companies will see the playbook as a useful tool in strengthening trust, transparency, and long-term value creation.”