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Small and mid-cap (SMID) companies listed in Singapore are making progress on corporate governance, but continue to lag behind larger listed companies in sustainability disclosure, ESG governance and transparency, according to the latest Singapore Governance and Transparency Index (SGTI).
The 2026 findings show that the overall governance gap between large-cap and smaller listed companies has narrowed. The difference in mean scores fell from 19.8 points in 2025 to 17.7 points in 2026, suggesting that smaller companies are gradually improving their governance practices. However, significant gaps remain in several important areas.
The largest difference was in Disclosure and Transparency. SMID companies recorded a mean normalised score of 47%, compared with 67% among large-cap companies — a gap of 20 percentage points. In the ESG and Stakeholders category, smaller companies scored 66%, compared with 79% for their larger counterparts. The index defines large-cap companies as those with a market capitalisation above S$1 billion, while SMID companies have a market capitalisation of up to S$1 billion.
Across all Singapore-listed companies assessed, performance was strongest in Rights of Shareholders, which achieved an average normalised score of 85%. This was followed by Accountability and Audit at 71%, and ESG and Stakeholders at 67%. Companies ranked among the top 100 also significantly outperformed the overall market in disclosure and transparency.
The findings highlight the continuing challenge of strengthening ESG governance and sustainability reporting capabilities among smaller listed companies in Singapore. While the narrowing governance gap points to progress, differences in disclosure quality and ESG practices indicate that smaller companies still have considerable room to improve the accessibility, consistency and transparency of their sustainability and corporate information.
The annual Singapore Governance and Transparency Index is jointly conducted by CPA Australia, the Centre for Governance and Sustainability at NUS Business School, and the Singapore Institute of Directors. It assesses SGX-listed companies across five areas: Board Responsibilities, Rights of Shareholders, ESG and Stakeholders, Accountability and Audit, and Disclosure and Transparency.
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