Construction Giant Justifies Decision Amid Regulatory Push for Transparency
Non-Disclosure of Remuneration Details
Lian Beng Group, a leading construction and property development company, has declined a request from the Singapore Exchange (SGX) to disclose the remuneration of several employees related to its directors, chief executive, or substantial shareholders. The company cited concerns over its ability to retain talent and competitive risks as reasons for withholding this information.
The SGX had sought details about the responsibilities of five employees and their remuneration in S$100,000 bands, as part of a broader push for greater corporate governance and transparency.
Concerns Over Talent Retention
Lian Beng identified the employees in question as Ong Sui Hui (senior contracts manager), Ong Lee Yap (purchasing director), Ong Phang Hoo (project director), and Ong Phang Hui (plant and machinery director), all of whom have been with the company since the 1990s, except for Ong Lee Yap, who joined in 1988.
The group argued that disclosing their remuneration could foster “inappropriate peer comparison” and allow competitors to exploit the information, potentially destabilising the business. “The information is therefore treated as sensitive and confidential to ensure stability and business continuity,” the company said in a filing on Tuesday (Sep 20).
Executive Disclosure Policy
The fifth individual, Ong Eng Keong, serves as executive director and CEO of SLB Development, a subsidiary of Lian Beng listed on the Catalist. Lian Beng clarified that Ong’s remuneration is determined by SLB’s remuneration committee and board, not the parent group. Ong’s remuneration was disclosed in SLB’s FY2022 annual report.
Regulatory Push for Transparency
SGX Regulation (SGX RegCo) recently announced plans to mandate the disclosure of exact remuneration figures for CEOs and directors, aiming to enhance corporate governance. Current practices show only 35% of companies disclose director remuneration in dollar terms, with just 18% doing so for CEOs.
Lian Beng’s refusal highlights the tension between corporate transparency and competitive business interests, particularly in a tight talent market.
Market Reaction
Lian Beng’s shares closed flat at S$0.54 on Tuesday, reflecting a neutral response from investors despite the regulatory scrutiny.
