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| The Straits Times / The Business Times News On Novena |
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SIAS Investors' Choice AwardsSep 27, 2004 WITH a membership of about 60,000 in a growing financial hub, Securities Investors Association of Singapore (SIAS) continues to push for more disclosure and transparency to level the playing field for minority shareholders, says president David Gerald. 'Nowhere in the world,' he proclaims, 'will retail investors get the type of services we provide. And if you don't make money, you must be an idiot.' With last week's 2004 Investors' Choice Awards out of the way, SIAS has now turned its attention to yet another new information service - corporate credit ratings. This year, SIAS hopes to provide Singapore's minority shareholders with a rating system touted as an early-detection system to weed out financially unhealthy companies. As the association enters its fifth year, it is no longer fighting the same battle that spawned it in 1999, says Mr Gerald. Back then, members were simply investors whose assets were frozen when Clob - Central Limit Order Book of the then-Stock Exchange of Singapore - was suspended over regulatory changes. But after the Clob issue was resolved, SIAS stayed on and enlarged its membership and objectives to encompass all minority shareholders in Singapore. Changing role Today, shareholders from the man-on-the-street to high net-worth individuals like Oei Hong Leong have turned to SIAS with their problems. The annual Investors' Choice Awards demonstrates how far SIAS has come. Each year, investors and companies alike participate in the highly visible awards ceremony that recognises companies for being well-run and transparent. Companies are nominated by analysts, fund managers and the media, and winners are selected based on criteria that include timeliness, clarity and detail. This year, the Singapore Exchange, Standard & Poor's and PricewaterhouseCoopers are just some of the big names that have formally endorsed the awards. 'This is a prestigious award, not just David Gerald and his committee,' Mr Gerald says of the widespread support. While the usual suspects like Singapore Telecommunications, winner of the Golden Circle award, and Qian Hu Corp did not disappoint this year, also notable were some of the new names, including IT firm DMX Technology and Baker Technology, a component maker for York trailers. The strategy is simple: Improve corporate transparency and governance, and minority shareholders will have more and better access to information that will help them make better decisions. 'We want to encourage companies to improve their act so as to give value to shareholders,' says Mr Gerald. The next step is the credit rating system that Mr Gerald expects to launch soon. SIAS will be the exclusive marketing agent for the Australia-based Rapid Ratings system. SIAS members will have access to the ratings for a token fee, while institutional investors and corporate customers, such as research houses, will be charged a higher rate, he says. Credit ratings are usually expensive products that most retail investors do not have access to, he says, adding that distributing Rapid Ratings would help narrow the information gap between the average investor and institutions and high net worth investors. But observers, such as remisiers society president Albert Fong, have pointed out that giving investors access to credit ratings is only part of the solution - the other part is teaching them how to use it. SIAS, however, sees credit ratings and awards as just part of a comprehensive strategy that includes its own research scheme and educational workshops. It has also emerged as an occasional observer and mediator invited by companies to attend controversial shareholders' meetings. Mr Gerald says that all the initiatives aim to help people better understand their investment options and enable them to make investments without being burned. 'We want to teach them that money lying around in your fixed deposit is not going to be enough for retirement,' he says. SIAS Investors' Choice Awards Most transparent company award 2004 Category A: Multi-industry/conglomerates Category B: Non-electronics manufacturing Category C: Technology & electronics Category D: Commerce Category E: Transport/storage/communication Category F: Finance Category G: Construction Category H: Properties Category I: REITS Category J: Hotel & restaurants Category K: Services/utilities/agriculture Category L: SESDAQ Category M: Mainboard small caps (OF UP TO $100M) Category N: New issues (SINCE AUGUST 2003) Category O: Big caps ($1 BILLION AND ABOVE) Golden circle award Corporate governance award 2004 MAINBOARD 1st Singapore Telecommunications Limited Merit awards (in alphabetical order) ComfortDelGro Corporation Limited SESDAQ Baker Technology Limited Financial journalist award 2004 The best financial journalist of the year The best financial story of the year The most promising journalist award Special award
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