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SGTI 2026: Singapore's Small and Mid-Cap Companies Close the Governance Gap With Blue Chips

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If you have ever avoided a small or mid-cap SGX stock because you were not sure you could trust its numbers, there is fresh data worth a look.

The Singapore Governance and Transparency Index (SGTI) 2026, released on 5 August 2026 by CPA Australia, NUS Business School's Centre for Governance and Sustainability (CGS), and the Singapore Institute of Directors (SID), shows smaller companies catching up to the big boys on how clearly they report to shareholders.

Here is what changed, and why it matters right now.

The Headline Number

The SGTI splits companies into two groups:

  • Large caps: market value above S$1 billion
  • Small and mid-caps (SMID): market value up to S$1 billion

The average score gap between the two groups narrowed to 17.7 points in 2026, down from 19.8 points in 2025. That is a small but real improvement, roughly 10% tighter than last year.

Who Won This Year

  • Keppel topped the General Category, taking the crown from SATS, last year's winner.
  • CapitaLand Ascott Trust kept its top spot in the REIT and Business Trust Category for a second straight year.

Other strong performers in the General Category included ComfortDelGro, Jardine Cycle & Carriage, DBS and SATS. Among REITs, CapitaLand Integrated Commercial Trust, NetLink NBN Trust, CapitaLand Ascendas REIT and Far East Hospitality Trust rounded out the top five.

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Where the Gap Still Matters

Two areas still show a clear divide:

  • Disclosure and Transparency: large caps scored 67%, SMID companies scored 47%, a 20-point gap
  • ESG and Stakeholders: large caps scored 79%, SMID companies scored 66%, a 13-point gap

These are the categories that matter most for due diligence. They cover how fast and clearly a company reports its numbers, and how well it discloses its treatment of workers, environment and community. For a retail investor who cannot ring up management, this is where the real risk hides.

The good news: companies across the board did well on Rights of Shareholders, scoring 85% on average (97% for REITs). The basics, like AGM procedures and voting rights, are generally solid.

Why This Matters Now

This report lands at a telling moment. In November 2025, the Monetary Authority of Singapore wrapped up its Equities Market Review, launching a S$5 billion Equity Market Development Programme and new incentives to boost trading in smaller SGX stocks outside the Straits Times Index.

In short, regulators want more money flowing into smaller SGX names. A narrowing governance gap suggests some of these companies are becoming more investable, not just more liquid.

As Professor Lawrence Loh, Director of CGS, put it: "The results show that significant room for improvement remains in the corporate governance disclosures of SGX-listed companies. Strengthening these disclosures will help to deepen trust and investor confidence, which are important to sustaining the renewed vibrancy of Singapore's capital market."

Greg Unsworth, Singapore Divisional President at CPA Australia, added: "Good governance is a cornerstone of investor confidence and sustainable business performance. Transparent and meaningful governance disclosures enable investors to make informed long-term decisions and strengthen trust in capital markets."

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How the Scoring Works

The SGTI uses a "BREAD" framework across five areas:

  • Board Responsibilities (35 points)
  • Rights of Shareholders (10 points)
  • ESG and Stakeholders (20 points)
  • Accountability and Audit (10 points)
  • Disclosure and Transparency (25 points)

Companies also earn bonus points for strong disclosure and lose points for specific negative events. A total of 458 SGX-listed companies and 41 REITs and business trusts were assessed this year.

What to Do With This

  1. Treat a narrowing gap as a positive sign, not a green light. The remaining gaps in Disclosure and ESG are exactly where the real risk sits.
  2. Use the rankings as a starting point, not a full answer. A high score means clearer communication, not a guaranteed good investment.
  3. Watch how governance and market reform move together. As fresh capital flows toward smaller SGX names, better-governed SMID companies are better placed to benefit.

If you are building a watchlist of SGX small and mid-caps, checking the SGTI rankings is a quick way to flag the more opaque names before you commit any money.

Sources: 

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