SINGAPORE – The pandemic has underscored the need for businesses to be resilient, which in turn means paying more attention to their intangibles and sustainability, the second Minister of Finance and National Development said on Wednesday (October 6th). , Indranee Rajah.
“The valuation of companies globally is increasingly determined by intangibles, environmental, social and governance (ESG) factors and long-term value … There is recognition and support growing for the creation of long-term business value and the use of sustainability measures, “she said.
Ms. Indranee gave the keynote address at a virtual conference of the Institute of Valuers and Appraisers of Singapore and the International Valuation Standards Council.
Intangible assets such as patents and trademarks have become more important as the economy is increasingly driven by innovation and new technologies, she noted.
The global value of these assets reached a record high of over US $ 65 trillion (S $ 88.4 trillion) last year.
“Being able to reliably assess these critical assets is therefore necessary to help companies effectively unlock the value of their intangibles and use them for growth,” said Ms. Indranee.
Singapore has made progress in encouraging better corporate disclosure, she added, citing Singapore’s Intellectual Property Strategy 2030 which was launched in April to strengthen the intangible asset and intellectual property regime.
There is not yet an internationally standardized reporting framework for these, Ms. Indranee said, adding that an industry-led working group is being formed to develop a disclosure framework.
“Although this is still a work in progress, I have no doubts that it will help Singaporean companies better communicate the value of their intangibles,” she said.
Meanwhile, a pillar of the Singapore 2030 Green Plan is to pursue a green economy and make Singapore a leading financial center in this area.
“The assessment against green finance would contribute to urgent efforts to tackle climate change and at the same time help Singaporean professionals to access a growing high value-added industry,” said Ms. Indranee.
The Monetary Authority of Singapore has launched several initiatives to improve disclosures, including an implementation guide for climate-related disclosures by financial institutions.
Ms Indranee also urged business valuers to acquire the technical skills necessary to conduct valuations – one way is to use the Chartered Valuation and Appraiser program – and to stay abreast of trends and opportunities in the business. space.