Low-Carbon and Sustainable Future: How Governments are helping APAC Businesses Transition

Low-Carbon and Sustainable Future How Governments are helping APAC Businesses Transition Banner

Low-Carbon and Sustainable Future: How Governments are helping APAC Businesses Transition


With businesses encouraged to shift to a more sustainable model, the adoption rate is still relatively low. To tackle this, the governments in Singapore, Malaysia, Hong Kong, and Australia are actively supporting businesses in their transition to a low-carbon and sustainable future by introducing initiatives in the form of ESG grants and incentives. 

While the specific offerings vary by country, these measures aim to foster a culture of sustainability among businesses and contribute to long-term environmental and social progress. Businesses operating in these regions are encouraged to leverage available resources and support to enhance their sustainability efforts and ESG reporting capabilities.

Our report this month details the essential grants and incentives that APAC businesses can leverage to enhance cost savings as they initiate their ESG journey.


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ESG Reporting Essentials – Your Guide to ESG Reporting in Singapore

ESG Reporting Essentials – Your Guide to ESG Reporting in Singapore

ESG Reporting Essentials – Your Guide to ESG Reporting in Singapore

In Singapore, ESG reporting is rapidly becoming a norm amongst businesses, driven by heightened investor and consumer interest in sustainability and ethical practices. For listed companies, the Singapore Exchange (SGX) introduced a phased approach to mandatory climate reporting on a ‘comply or explain’ basis, based on the recommendations of the Task Force on Climate-related Financial Disclosures (“TCFD”). From 2027 fiscal year, large non-listed companies with annual revenue of at least SGD 1 billion and total assets of at least SGD 500 million will be required to make climate disclosures.

Besides regulatory requirements, ESG reports are increasingly influential in guiding decisions, fostering positive transformations, mitigating avoidable risks, and enhancing trust and transparency. In this article, we explore the basics of ESG reporting, its importance, different frameworks, and best practices for successful implementation.

What is ESG?

Environmental, Social, and Governance (ESG) serves as a framework extensively employed to assess the sustainability and ethical footprint of a company’s operations and policies. It includes criteria that investors, stakeholders, and organisations examine when evaluating and disclosing a company’s non-financial performance. ESG elements offer a comprehensive perspective for assessing companies, focusing on their environmental impact, social contributions, and governance standards within the community.

Understanding ESG Reporting in Singapore

ESG reporting involves transparently sharing standardised details about a company’s sustainability initiatives, objectives, and advancements to underscore its dedication to ethical business conduct. This enables stakeholders to understand the extent of a company’s sustainability efforts.

Operating within the ESG framework, sustainability reporting enables companies to highlight their endeavours in tackling environmental issues, fostering social accountability, and instating effective governance measures. It serves as a channel for companies to communicate their sustainability strategies, objectives, and achievements to investors, clientele, workforce, and the broader community.

Understanding ESG Reporting in Singapore

Distinguishing ESG from Sustainability Reporting in Singapore

Although ESG and sustainability share overarching objectives, they diverge in their reporting approaches.

ESG reporting entails a set of criteria used by investors, stakeholders, and organisations to assess a company’s non-financial performance. It evaluates a company’s environmental, social, and governance practices and their implications for long-term sustainability and risk management. Factors such as climate change initiatives, employee relations, board composition, executive compensation, and risk mitigation strategies are examined.

On the other hand, sustainability reporting takes a comprehensive approach, considering the long-term sustainability of the planet, society, and economy. It aims to meet current needs while ensuring future generations can meet their own. This involves evaluating businesses’ impacts on the environment and implementing strategies to enhance resilience, resource efficiency, and social progress.

Significance of ESG Reporting in Singapore

Prioritising ESG reporting holds significance for organisations in Singapore, as it can enhance corporate reputation and help mitigate potential risks. In 2016, the Singapore Exchange (SGX) introduced the Sustainability Reporting Guide, making it mandatory for all listed companies to disclose their sustainability practices on a ‘comply or explain’ basis.

Environmental Sustainability Overview in Singapore
Singapore prioritises environmental sustainability with a range of initiatives aimed at mitigating environmental impact and promoting conservation efforts. Organisations are urged to reduce their environmental footprint in daily operations by cutting down on carbon emissions, preserving natural habitats, and conserving water resources. These actions align with Singapore’s national sustainability goals and contribute to efforts in combating climate change.
Social Responsibility in Singapore
In Singapore, social responsibility include initiatives such as promoting fair labour practices, fostering diversity and inclusion in employment practices, and ensuring ethical supply chain management. ESG reporting may include the company’s strategies for employee well-being, community outreach programs, and adherence to human rights principles. These demonstrate the company’s commitment to fostering a socially conscious and inclusive business environment.
Regulatory Governance in Singapore
The regulatory framework in Singapore is evolving to prioritise ESG reporting. Examples include the Singapore Exchange (SGX) Listing Rules and the Environmental Protection and Management Act. These regulations urge organisations to disclose their ESG performance. The SGX Listing Rules require listed companies to disclose material ESG risks and their management strategies. Additionally, the Environmental Protection and Management Act sets standards for environmental compliance. By adhering to these regulations and adopting ESG reporting, organisations in Singapore can ensure legal compliance, mitigate reputation-related risks, and showcase strong governance practices.
Common ESG Reporting Frameworks in Singapore

Common ESG Reporting Frameworks in Singapore

Industries in Singapore have increasingly adopted diverse ESG frameworks in recent years. These are some of the prevalent reporting frameworks.

Global Reporting Initiative (GRI) in Singapore

GRI is a globally acknowledged reporting framework that offers guidelines for organisations to report their economic, environmental, and social impacts. It provides a comprehensive range of indicators and metrics enabling organisations to gauge and disclose their ESG performance. In Singapore, many companies leverage the GRI framework to compile their sustainability reports, enhancing their credibility and enabling comparisons. 

Sustainability Accounting Standards Board (SASB) in Singapore

Another notable framework is SASB, which offers industry-specific guidelines for reporting financially significant ESG information. The SASB standards are customised to each sector, concentrating on the ESG matters most important to them. By following SASB standards, organisations in Singapore can customise their ESG reporting to suit their industry’s requirements and fulfil the expectations of investors and stakeholders.

Task Force on Climate-Related Financial Disclosures (TCFD) in Singapore

The TCFD framework has garnered attention in Singapore as well. It provides a framework for organisations to evaluate and reveal climate-related risks and opportunities. It prompts companies to disclose details concerning governance, strategy, risk management, and metrics and targets on climate change. Employing ESG reporting in this manner allows organisations to showcase their readiness for climate risks and their efforts to transition toward a low-carbon economy.

The benefits of a robust ESG strategy

Effective Approaches for ESG Reporting in Singapore

In ESG reporting, it’s crucial to adhere to certain principles when sharing insights with stakeholders.

Materiality Assessment
Identify, analyse, and report pertinent ESG issues that align with the company’s industry, business model, and stakeholder interests. Conduct thorough due diligence during data collection to ensure the accuracy of your reporting.
Clear and Transparent Reporting
Deliver transparent and concise ESG disclosures that stakeholders can easily access. Opt for standardised frameworks like the GRI, SASB or TCFD to ensure consistency and comparability of reports across industries.
Stakeholder Engagement
Engage with stakeholders to understand their expectations and concerns regarding ESG matters. Regularly communicate and solicit feedback from investors, employees, customers, local communities, and other important stakeholders to address their interests effectively.
Integration with Governance and Business Strategy
Integrate ESG considerations into the organisation’s governance framework and decision-making processes. Ensure that the board of directors and executive leadership prioritise and oversee ESG issues, integrating them into strategic planning and risk management initiatives.

How Can BoardRoom Assist You with ESG Reporting and SME Grants?

Navigating the complexities of ESG reporting demands precise data collection, reporting, and analysis. BoardRoom’s ESG Access offers a comprehensive software solution tailored to simplify sustainability reporting for companies in Singapore.

ESG Access presents an array of tools that streamline data requests, response collection, and evidence gathering, ensuring seamless access and collaboration to essential information. The software incorporates functionalities for reviewing, validating, and auditing, empowering stakeholders to contribute, review, and endorse reporting timelines, all within a unified platform. Entity reporting allows you to easily organise users into groups (entities) and control/assign ESG metrics specific to each group, so you can improve decision making, identify growth opportunities and manage group risks. Additionally, it allows you to craft and personalise your sustainability reporting to align with the specific requirements of your stakeholders.

SMEs in Singapore can leverage the Enterprise Development Grant (EDG)  to offset costs associated with ESG services provided by BoardRoom. This grant enhances accessibility and affordability for SMEs seeking to improve their sustainability practices while complying with ESG reporting standards. 

Get a free 7-day trial on our ESG Access reporting software now.

Contact BoardRoom for more information:

Tina Thomas_profile

Tina Thomas

Head of Environmental, Social and Governance

E: [email protected]

T: +65 6536 5355

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The Importance of Due Diligence in ESG

The Importance of Due Diligence in ESG

The Importance of Due Diligence in ESG

In today’s business landscape, Environmental, Social, and Governance (ESG) considerations are gaining importance among investors and consumers in Singapore. Conducting due diligence in ESG is essential for informed decision-making, fostering sustainable practices, and enhancing transparency and trust. Explore the significance of ESG due diligence and its impact on corporate reputation, financial outcomes, and capital access. Gain valuable insights into ESG principles, the due diligence process, and the common challenges encountered by organisations in Singapore.

What is ESG?

ESG, which stands for Environmental, Social, and Governance, represents a comprehensive evaluation framework for assessing a company’s performance across these three dimensions:

Examining the environmental aspect involves assessing how a company’s operations and products impact the environment, including considerations like carbon emissions, waste management strategies, and resource consumption.
The social dimension of ESG evaluates the company’s influence on its employees, customers, and the local community. This entails fair treatment and diversity among employees, customer well-being and satisfaction, and active participation in community development.
Governance within ESG includes scrutinising the leadership, policies, and transparency within the company to maintain compliance with regulations, industry best practices and corporate policies. This involves factors such as board composition and diversity, executive remuneration practices, and adherence to ethical business standards.

What is Due Diligence in ESG?

Due diligence in ESG entails a comprehensive investigation and assessment of a company’s strategies and policies in these domains. This includes scrutinising the company’s impact on the environment, society, and stakeholders, along with its governance and ethical framework.

In the process of ESG due diligence, investors and businesses in Singapore analyse various aspects, including the company’s environmental footprint, waste management strategies, treatment and diversity of employees, customer safety and satisfaction, community involvement, board composition, executive compensation structure, and adherence to ethical business norms. Through this thorough examination, stakeholders determine whether the company aligns with established ESG standards and principles.

What Are the Steps in Navigating Due Diligence for ESG in Singapore?

Conducting due diligence for ESG purposes involves a structured process comprising five key steps:

Defining Objectives and Criteria

Clearly outline the priorities and criteria crucial to your organisation, covering environmental impact, social responsibility, and corporate governance. These benchmarks will shape your investigative direction.

Gathering ESG Information

Acquire comprehensive data on ESG performance, such as environmental footprint, labour standards, board diversity, and disclosure practices. Utilise diverse sources such as public disclosures, corporate reports, and third-party assessments for a well-rounded evaluation.

Information Processing

Analyse the collected data and consider the potential risks and implications associated with ESG practices.

Stakeholder Engagement

Foster direct engagement with stakeholders to gain deeper insights into the company’s operations and policies. This interactive process facilitates inquiries and addresses concerns effectively.

Evaluation and Documentation

Evaluate the company’s ESG practices based on industry standards and regulatory mandates. Document your findings and disseminate them to relevant stakeholders, including investors and shareholders. By sharing insights, you foster transparency, accountability and facilitate potential positive transformations within the organisation.

Due diligence

Why Is Due Diligence Important in ESG?

1. Making Informed Choices and Mitigating Risks

Thoroughly examining a company’s environmental, social, and governance practices is essential for aligning with ESG standards and principles. This approach enables stakeholders to make decisions that embrace not only financial gains but also the company’s sustainability and ethical footprint. Identifying potential environmental, social, or governance concerns empowers investors and businesses to make informed and prudent choices, preventing potential financial and reputation-related risks.

2. Driving Positive Transformation

By meticulously documenting findings, stakeholders can hold companies accountable for their impact on the environment, society, and governance. This accountability encourages companies to adopt more sustainable and ethical approaches. This accelerates a ripple effect where companies strive to enhance their ESG standings, fostering a more sustainable and ethical business environment.

3. Fostering Trust and Transparency

By disseminating findings to relevant stakeholders, including investors, shareholders, and the company itself, there’s enhanced transparency and accountability regarding ESG practices. This promotes trust among stakeholders and bolsters the company’s reputation as a responsible corporate citizen.

4. Ensuring Regulatory Adherence

In Singapore, companies are bound by various laws and regulations, such as the Environmental Protection and Management Act and the Companies Act, which mandate transparency and disclosure of ESG practices. Non-compliance can lead to legal consequences and tarnished reputations for companies.

Singapore due diligence process

Common ESG Due Diligence Challenges in Singapore

While conducting due diligence for ESG is imperative for businesses, several challenges may arise during the process:

Limited or Inconsistent Data Availability
Obtaining reliable and consistent data poses a significant challenge in ESG due diligence. Many companies either do not disclose their ESG practices or adopt varying reporting methodologies, complicating the task of gathering accurate and comprehensive information.
Lack of Standardisation
Despite the increasing significance of ESG, the industry lacks standardisation. This absence of uniform criteria or metrics makes it difficult to compare and assess companies’ ESG practices effectively.
Time and Resource Intensiveness
Thorough ESG due diligence demands substantial time and resources. It entails extensive research, data gathering, and analysis, which can strain companies with limited resources.
Subjectivity and Bias
Evaluating a company’s practices and policies in ESG due diligence is naturally subjective and susceptible to bias. Divergent stakeholder priorities and values often hinder reaching an agreement on a company’s ESG performance.
Difficulty in Predicting Future Performance
ESG due diligence primarily focuses on a company’s current practices, making it challenging to forecast its future performance accurately. This poses a considerable challenge for investors seeking long-term investments based on ESG performance indicators.
Lack of Expertise
Effective ESG due diligence necessitates expertise across diverse fields, including environmental science, social impact, and corporate governance. Many companies may lack the necessary in-house expertise, complicating the execution of comprehensive due diligence processes.
Challenges faced in ESG due diligence

How BoardRoom Supports ESG Due Diligence in Singapore with SME Grant Assistance

Conducting ESG due diligence presents challenges, especially in precise data collection, reporting, and analysis. BoardRoom’s team of experienced ESG professionals have the expertise in multiple APAC jurisdictions to help you help you develop and implement a tailor-made ESG strategy for your business, supporting ongoing sustainability and profitability as a result.

Our ESG advisory service includes helping you identify relevant ESG risks and opportunities, setting ESG targets, creating sustainability reports, conducting a materiality assessment, drafting a sustainability policy for your company and ESG due diligence.
Contact us for a consultation now.

Contact BoardRoom for more information:

Tina Thomas_profile

Tina Thomas

Head of Environmental, Social and Governance

E: [email protected]

T: +65 6536 5355

Related Business Insights

Recent SG and HK Budgets Commentaries, MY’s Recent SST Rate Increase, & CN’s Tax Filing Season for Individuals

Recent SG and HK Budgets Commentaries, MY’s Recent SST Rate Increase, & CN’s Tax Filing Season for Individuals


Recent Singapore and Hong Kong Budgets Commentaries, Malaysia’s Sales and Service Tax ("SST") Rate Increase, and China’s Tax Filing Season for Individuals

Welcome to another issue BoardRoom’s Asia Tax Insights. In this issue we explore the evolving financial climate in Malaysia, Singapore, and Hong Kong, and what to expect for the upcoming tax season in China.

First, we look at the recent increase in Malaysia’s Sales and Service Tax ("SST") rate from 6% to 8%. Next, we share our commentaries for Singapore and Hong Kong’s recently released Budget for 2024/ 25 and shed light on the introduction of new tax measures and the enhancement of existing ones. Finally, we list some important things to note when filing for individual tax in China’s upcoming tax season.

As the saying goes, "no winter lasts forever; no spring skips its turn,” and just as tax changes are not only inevitable, but it also presents opportunities for growth. BoardRoom is ready to help you navigate the evolving tax landscape.


Transfer Pricing in Malaysia: Your Guide to Navigating Them

Success in Malaysia’s corporate sphere requires a good understanding of transfer pricing best practices. We spoke with the Head of Tax Services for BoardRoom Malaysia, Woon Chee Cheong, in our recent article, as she shares her​​​​​​ expert tips for ensuring smooth, compliant transfer pricing for your business



Navigating the shifts in Sales and Service Tax
In response to the ever-evolving economic landscape, Malaysia has implemented significant changes to their Sales and Service Tax ("SST"), effective from 1 March 2024.

Notably, the SST rate for most taxable services has increased from 6% to 8%, accompanied by a broadening scope of taxable persons and services. We take a closer look at these changes in our report.



Recap of Singapore Budget 2024 Commentary 
Singapore’s Budget 2024 introduces new tax measures to propel the Forward Singapore agenda amidst economic resilience and geopolitical risks. Aimed at supporting businesses and taxpayers, these changes are crucial for maintaining global competitiveness and building a shared future. 

Our Budget commentary delves into these fiscal adjustments, providing valuable insights for navigating the evolving landscape.


Hong Kong

Summary of HK Budget 2024 – 2025 
On February 28, 2024, Hong Kong's Financial Secretary, Mr. Paul Chan, unveiled the 2024-25 Budget under the theme "Advance with Confidence, Seize Opportunities, Strive for High-quality Development". Despite challenges in the previous fiscal year, including slower economic growth and reduced revenue from land premium and stamp duty, adjustments were made. 

Our Hong Kong Budget 2024-25 commentary analyses key tax measures aimed at attracting strategic enterprises, bolstering economic resilience, and encouraging capital and talent influx.



Navigating the Individual Income Tax Filing Season
On 31 January 2024, the China State Administration of Taxation (SAT) issued Announcement 2024 No. 2, along with relevant interpretations.

This marks the initiation of the China 2023 Annual Individual Income Tax Reconciliation Filing on Consolidated Income for the period from 1 March to 30 June 2024. We share more on how you can navigate the tax season, in our report.




Copyright © 2024 Boardroom Pte Ltd.
All rights reserved.

Our mailing address is: [email protected]


Our guide to Performance Share Plans (PSP)

Our guide to Performance Share Plans (PSP)

Our guide to Performance Share Plans (PSP)

Performance Share Plans (PSP) serve as a strategic tool for companies aiming to align employee performance with organisational success. This comprehensive incentive program grants employees shares based on predetermined performance criteria.

Introduction of Performance Share Plan (PSP)

In this guide to Performance Share Plans, we explore the various aspects of this incentive structure. From understanding its core functionality to navigating the diverse benefits it offers, we provide insights into the establishment requirements, tax implications, and associated risks.

How Performance Share Plans Function

A Performance Share Plan (PSP) is an executive compensation strategy that aligns the interests of company leaders with overall organisational success. In a PSP, executives receive awards in the form of shares, and these awards are contingent on achieving predefined performance targets. The performance is typically measured against specific financial, operational, or strategic metrics. As executives meet or exceed these goals, they unlock shares, creating a direct link between their performance and financial rewards.

ESOP vs. shares_ how they differ

Advantages of Performance Shares

Performance Share Plans (PSPs) offer several benefits. They serve as strong incentives by directly tying executive rewards to the company’s performance, motivating executives to contribute to overall success. PSPs also encourage a focus on long-term goals, fostering sustained achievements. Moreover, they help retain talent by giving executives a stake in the company’s success, reducing turnover. These plans provide a clear and measurable way to evaluate executive performance, creating a results-driven culture. In essence, implementing PSPs strategically enhances organisational performance and strengthens the connection between executive leadership and corporate success.

Types of Performance Shares

Performance Shares come in various types, offering flexibility for companies to tailor incentive structures to their specific needs.

Here are some common types of Performance Shares:

Time-Based Performance Shares
Time-Based Performance Shares provide executives with shares based on a set schedule, not contingent on specific performance metrics. Executives receive an initial share allocation upon grant, and these shares vest gradually over a specified period, often tied to their tenure. The vesting schedule can be structured annually, quarterly, or as per another specified timeframe, encouraging executives to stay, especially in industries prioritising employee retention where measuring specific performance metrics might be challenging.
Performance-Vesting Shares
Performance-vesting shares blend time-based and performance-based vesting in equity compensation. Unlike traditional time-based vesting, where shares vest on a set schedule, these shares require executives to meet specific performance targets within a designated time period. Vesting hinges on predefined metrics like financial goals or stock price targets. Executives receive a share grant, and full vesting depends on meeting or surpassing established benchmarks. This aligns executive compensation with company performance, linking rewards to strategic achievements. Balancing long-term commitment (time-based) with contributions to the company’s success (performance-based) motivates executives to drive positive outcomes.
Relative Total Shareholder Return (TSR) Shares
Relative Total Shareholder Return (TSR) Shares tie executive rewards to the company’s stock performance compared to peers. Executives earn shares based on the total shareholder return relative to a selected group of peer companies. Calculation involves measuring the company’s stock price appreciation and dividend yield against predefined peers over a specified period. Outperformance results in a higher share allocation, while underperformance may reduce or eliminate the allocation. This aligns executive compensation with the company’s market performance, encouraging strategies that enhance shareholder value compared to industry competitors. Relative TSR Shares offer a performance-oriented incentive, fostering a competitive drive among executives for superior results in the market.
Factors to consider before implementing ESOPs

Requirement To Establish a PSP

Establishing a Performance Share Plan in Singapore involves a comprehensive approach. Firstly, in the design phase, clear objectives must be defined, aligning them with the company’s overarching goals. Additionally, specifying performance metrics that determine share or cash allocations is crucial. Legal and regulatory compliance is vital, requiring adherence to regulations set by the Accounting and Corporate Regulatory Authority (ACRA) and the Monetary Authority of Singapore (MAS).

Transparent communication with employees is essential, detailing the criteria for earning shares, the potential value of the awards, and clarity on vesting schedules and conditions. Employee eligibility is determined based on factors like job level, performance, and tenure, and the plan’s scope may include all employees or specific groups. Establishing performance metrics involves outlining key indicators relevant to the company’s objectives. Defining a vesting period with a graded approach encourages employee retention. Valuation methods for PSP awards, whether in shares or cash equivalents, need to be consistent and fair.

Efficient administration and record-keeping systems, potentially utilising specialised software are essential. Understanding tax implications for both the company and employees is important, involving consultation with tax professionals for compliance with Singapore’s tax laws. Obtaining board approval aligning with the company’s overall compensation strategy is the final step, ensuring the success of the PSP in motivating employees and aligning their interests with the company’s performance. Consulting legal, financial, and HR professionals is advisable throughout the design and implementation phases to ensure a seamless process.

Explore our comprehensive ESOP platform that simplifies the management and administration of your Performance Share Plan (PSP).

Tips for successful share scheme execution

Tax Treatment of PSP

The tax treatment of a Performance Share Plan (PSP) varies by locations and design features, with key considerations:

Taxable Event
Receipt of performance shares is often non-taxable; taxation typically occurs upon vesting when shares become transferable.
Taxation Upon Vesting
Upon vesting, ordinary income tax may apply on the shares’ fair market value, treated as compensation in taxable income.
Capital Gains Tax
Selling vested shares may incur capital gains tax, potentially more favourable than ordinary income tax rates.
Timing of Taxation
Taxation timing varies, some tax gains at vesting, others at sale.
Withholding Requirements
Taxation timing varies, some tax gains at vesting, others at sale.
Employee Deductions
Taxation timing varies, some tax gains at vesting, others at sale.
Social Security and Medicare Taxes
Taxation timing varies, some tax gains at vesting, others at sale.
International Considerations
Multinational companies face complexity due to diverse tax laws; compliance with international tax regulations is crucial.

Restriction and Risk on Performance Share

Implementing a Performance Share Plan (PSP) comes with certain restrictions and risks that require careful consideration:

Regulatory Compliance
Adhering to local and international regulatory requirements is crucial to avoid legal issues. Non-compliance may lead to penalties and reputational damage.
Shareholder Dilution
Offering performance shares may dilute existing shareholders’ ownership. Striking a balance between rewarding employees and maintaining shareholder value is essential.
Market Volatility
Fluctuations in the stock market can impact the value of performance shares. Participants may experience lower-than-expected returns if the market performs poorly.
Performance Metrics Ambiguity
Unclear or subjective performance metrics may lead to disputes. Defining precise and measurable criteria is essential to ensure fairness and transparency.
Employee Retention Challenges
While PSPs aim to retain talent, there’s a risk that employees might leave before the shares vest, resulting in unused allocations.
Communication and Understanding
Inadequate communication about the PSP details can lead to misunderstandings among employees, affecting morale and the effectiveness of the plan.
Financial Performance Dependency
PSPs tie rewards to the company’s financial performance. Poor performance may result in lower returns for participants, impacting their motivation.
Tax Implications
Tax regulations can change, affecting the tax treatment of performance shares. Staying informed about tax laws is essential to avoid unexpected financial consequences.

Frequently Asked Questions (FAQs)

Can performance shares decrease in value?

The value of performance shares can decrease. The value of performance shares is often tied to the company’s stock price or other predetermined performance metrics. If the company’s stock price declines or if the predetermined performance goals are not met, the value of the performance shares can decrease. This is a risk associated with performance-based compensation plans, as the value is contingent on the company’s overall performance.

Are there tax implications for receiving performance shares?

Yes, there are tax implications for receiving performance shares. The taxation of performance shares can vary based on the jurisdiction and specific tax regulations. In many cases, taxation occurs when the performance shares vest or when the recipient sells the shares. In some jurisdictions, the value of the performance shares at the time of vesting may be treated as ordinary income, subject to income tax.

Can performance share plans be customised for different employees?

PSP in Singapore can be customised for different employees. Companies often tailor PSPs to align with their organisational goals, individual roles, and employee preferences. Customisation may involve varying performance metrics, vesting periods, or the number of shares granted based on factors such as seniority, job responsibilities, or performance expectations.

Related Business Insights

Sustainable Finance & ESG Reporting: Transformative Steps Taken in APAC

Sustainable Finance & ESG Reporting Transformative Steps Taken in APAC Banner

Sustainable Finance & ESG Reporting: Transformative Steps Taken in APAC


In recent years, countries across the Asia-Pacific (APAC) region have made significant strides towards integrating sustainability into their corporate landscape through mandatory reporting initiatives. Recognising the urgent need to address Environmental, Social, and Governance (ESG) concerns, governments in the APAC region have implemented regulations requiring businesses to disclose their sustainability practices and performance. 

These transformative steps aim to enhance transparency, accountability, and responsible business practices, ultimately fostering a more sustainable future for the region and beyond.

What are some of the key transformative steps in sustainability reporting introduced in APAC? We share more on what Singapore, Malaysia, and Australia have implemented in our report.


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