SGX RegCo Extends Suspension of Issuer Watch-List Reviews

The extension will enable issuers time to operate under normal business conditions and recover from Covid-19 related challenges.

SGX RegCo (Singapore Exchange Regulation) has announced it will continue to suspend the entry of listed companies into its watch-list.

SGX RegCo typically reviews on a half-yearly basis, on the first market days of June and December, listed issuers for their compliance with the watch-list requirement.

SGX’s rules require an issuer to be placed on the watch-list if it records pre-tax losses for the three most recently completed consecutive financial years, and has an average daily market cap of less than SGD 40 million over the last six months.

In June 2020, SGX RegCo suspended the half-yearly watch-list reviews for 2020 when companies were struggling with the pandemic-induced crisis. Last year, it extended the suspension of the half-yearly watch-list reviews for 2021.

SGX RegCo now says it will continue to suspend the entry of listed companies into the watch-list until 1 June 2023. The decision was made in consultation with MAS (Monetary Authority of Singapore).

“As multiple sectors of the economy are only beginning to stabilise from the effects of the Covid-19 pandemic and many restrictions were relaxed just recently in 2022, we intend to allow all issuers a full financial year to operate under normal business conditions and recover from the challenges presented by the Covid-19 pandemic,” SGX RegCo said.

There are now 27 companies on the SGX watch-list. Companies that meet the exit criteria under the listing rules will continue to be able to exit the watch-list.

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