Singapore’s focus on shareholder value is increasing scrutiny of investor communications. Through the Value Unlock programme, MAS and SGX support companies in identifying valuation drivers and communicating strategies for sustainable value creation. Reporting therefore plays a central role in explaining the business and management’s direction.
SGX’s enhanced disclosure requirements reinforce this direction. For financial years beginning on or after 1 January 2027, annual reports must explain executive remuneration KPIs and their alignment with long-term value creation, disclose dividend and investor relations policies, and describe key shareholder engagement. This increases the importance of linking management incentives, shareholder returns and engagement.
Against this backdrop, our research examines the iEdge Singapore Next 50 Index, which tracks 50 large and liquid SGX Mainboard companies beyond the STI. We assessed 49 constituents across more than 20 disclosure points, excluding one recently listed company whose first annual report was unavailable.
Using the same four themes as our flagship STI30 research, we assess investment case clarity, strategy execution and accountability, capital allocation discipline, and investor engagement. The findings identify opportunities for clearer reporting, recognising that disclosure gaps do not necessarily indicate gaps in management practice.
Can investors readily understand why they should invest in the company?
An investment case explains what distinguishes a business and how this could support shareholder returns. Investors should be able to understand its competitive position, growth priorities and financial discipline without piecing together multiple sections.
Only 20% of Next 50 companies assessed have a clearly identified investment case section, compared with 43% of STI30 companies. Fewer than half of either cohort bring their investment case together in this way. This measures the presence of an identifiable section, not the strength of the business or every investment-related disclosure.
Companies may already discuss their strengths across market reviews, business updates and financial commentary. Bringing these elements together creates a coherent proposition, supported by evidence of competitive advantage and growth potential, with references to fuller disclosures.
Can investors assess what management has delivered and what it is rewarded for?
Strategy typically spans several years, but reporting often concentrates on the latest annual results. Only 7% of Next 50 companies review earlier medium-term commitments and connect delivery to their next priorities, while 35% explain financial movements beyond the latest year-on-year comparison.
Without continuity between earlier commitments and current results, investors have less evidence to judge management’s track record and future ambitions. Comparing commitments with results shows what was delivered, why outcomes differed and how the experience shapes priorities. Explaining changes to targets or priorities preserves continuity between reporting periods.
Remuneration can reinforce this account of delivery. While 43% name specific financial and non-financial KPIs, only 31% explain how they support long-term value creation. For 86%, disclosures do not establish whether remuneration measures changed. Explaining why measures were selected, whether they remained consistent and how performance informed rewards would clarify management’s accountability.
Can investors understand the principles behind management’s capital decisions?
Dividend policies are more common than broader capital allocation frameworks among Next 50 companies: 73% compared with 37%. Twenty companies disclose a dividend policy without meeting our framework criteria. Investors may therefore understand how distributions are determined while having less visibility of how management balances them against other uses of capital.
A broader framework explains the considerations guiding reinvestment, acquisitions, balance-sheet management and shareholder returns. These might include strategic fit, expected returns and financial capacity. Connecting those principles to a recent investment, disposal or distribution helps investors understand the rationale behind the decision and the outcome management expects it to deliver.
The response to underperformance offers another view of capital discipline. 69% explain challenges in weaker assets or businesses, compared with 97% of STI30 companies. However, these disclosures often do not show whether corrective action is working. Companies can provide greater clarity by linking the causes of underperformance to specific actions, progress measures and future capital decisions.
Can investors see how their feedback influences action?
Only 2% of Next 50 companies provide an explicit example of investor feedback influencing action, compared with 7% of STI30 companies. This remains uncommon across both groups. This leaves investors unable to see how the dialogue informs management’s thinking or leads to a response.
Describing meetings and engagement channels establishes that opportunities for discussion exist. Explaining the issues raised and management’s response shows what that engagement achieves. The resulting action could involve improved disclosure, a change in priorities or a business decision.
A useful account connects the concern, management’s consideration and the response. Not every suggestion must lead to change: explaining why management maintained its approach can still show that feedback informed its decisions and reporting.
The findings suggest five priorities for the next reporting cycle:
Bring the investment case together: Give readers an accessible explanation of the company’s competitive advantages, growth priorities and potential shareholder benefits, backed by evidence elsewhere in the report.
Review earlier commitments: Show what management set out to achieve, what happened and how the experience informs the next phase. Maintain continuity when priorities or targets change.
Connect remuneration measures to outcomes: Explain why the board selected the measures, whether they changed and how performance against them informed rewards.
Put capital decisions in context: Set out the allocation principles and dividend policy, then use a recent decision to demonstrate how management balances competing demands.
Make engagement influence visible: Describe a specific investor concern, management’s consideration and the resulting response so readers can understand what the dialogue achieved.
Much of this information may already exist within the business. Organising it around investors’ questions can improve reporting without adding volume.
For Next 50 companies, the opportunity is to connect business strengths, priorities, performance and shareholder outcomes into a coherent investment story. Clearer connections help investors understand differentiation, assess progress and judge long-term value potential.
Our Next 50 research provides a basis for reviewing how effectively a company communicates its value to investors. To discuss the findings or explore what they mean for your organisation’s reporting and investor communications, get in touch with Beryl Leong at bleong@blacksun-global.com
About Black Sun
Black Sun Global is a stakeholder advisory and engagement agency that's been driving transformation and positive change for ambitious brands for more than 20 years. With deep expertise in disclosure and reporting, ESG, sustainability, and digital engagement, we reshape how organisations connect with customers, investors, employees, and the wider world.
We are trusted partners to some of the most influential global organisations, sparking innovation and sustainable performance through our strategic insights, partnerships, and proprietary technologies.
As founders of the Positive Change Group, we are on a mission to create a new kind of stakeholder relations partner. Our world-class specialists work closely with executive leadership teams to protect reputations, inspire trust, and promote responsible business practices - building resilience and long-term value in a rapidly changing world.
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