DBS, OCBC, and SGX join ASEAN's corporate disclosure champs

They scored 10 in 10 points in a corporate disclosure index.

Singaporean companies DBS, OCBC, and the Singapore Exchange (SGX) are considered corporate disclosure champions as all three scored 10 out of 10 points in FTI Consulting’s latest ASEAN Disclosure Index.

The report evaluated 30 firms from each ASEAN jurisdiction, including Singapore, Malaysia, Thailand, Indonesia, and the Philippines based on their performance in corporate disclosure, board quality, and risk disclosure. The 180 listed firms have an average corporate disclosure score of 7.8 in 10 points.

Malaysian (8.7) and Thai (8.6) companies score the highest average on composite disclosure followed by Singaporean (8.3) companies. Vietnamese companies score the lowest on average (5.4), as the report cited “an overwhelming number of companies providing annual reports and other disclosure information in Vietnamese only.”

In terms of board quality, Malaysian companies have the highest average board quality score of 3.5 in 4 points, followed by both Singaporean (3.2/4) and Thai (3.2/4) companies. This is followed by Indonesia (3/4), Philippines (2.9/4) and Vietnam (2.5/4).

The report found that 20% of ASEAN companies have poor disclosure scores at 2 out of 5 points or less. Thai companies have the highest average risk disclosure score of 4.5/5, followed by Malaysian companies at 4.2/5, and then Singaporean companies at 4.1/5. They are then followed by Indonesia and the Philippines (both at 3.9/5), and then Vietnam (1.9/5).

The report also looked at whether boards have at least one female director or not, contributing to the disclosure score of gender diversity. Notably, 21 out of the 30 companies in Philippines, Vietnam and Singapore, each have at least one female director on their board.

Malaysian companies are the top scorer on this parameter, followed by Thai companies. Indonesian companies are the weakest on this parameter.

Eight companies in the Philippines and three in Indonesia provide board evaluation, with the involvement of a third-party or external expert. FTI Consulting that this a practice not followed by 19 Singaporean, 13 Malaysian, and 20 Thai companies.

About 19 companies in Philippines and 20 in Indonesia provide a convenient whistleblowing mechanism on their website. This is a practice that is not followed by 12 Singaporean, 10 Malaysian and eight Thai companies.