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We studied the market response in the days following the announcement across SGX-listed companies. We looked not just at raw price movements, but at how these firms performed relative to general market trends \u2013 a standard approach in financial research to isolate the impact of a specific event<\/span>.<\/span><\/p>\n Large non-STI firms saw their share prices rise by over 2 per cent. The signal from investors was clear: Delaying compliance eased pressure and gave these firms breathing room. The pause could also help others, including non-listed companies, strengthen internal processes.<\/span><\/p>\n KTC Civil Engineering & Construction, known for projects like Marina Bay Sands and Tampines Central Station, began tracking its emissions two years ago. \u201cAt first, we did yearly tracking, but now we have developed monthly tracking capabilities which allow us to act faster,\u201d Chun Huan Liaw, KTC\u2019s Chief Financial Officer told us. \u201cThe focus has shifted from reporting numbers to learning from the data and having more meaningful discussions.\u201d<\/span><\/p>\n STI firms, which were not affected by the announcement, also saw a positive response of 1.3 per cent. This likely reflects investor confidence in their readiness \u2013 many of these large firms already publish detailed climate reports and track emissions, even voluntarily.<\/span><\/p>\n But small-cap companies, which make up about 70 per cent of SGX-listed firms, saw their stock prices fall by over 1 per cent. Even though these companies benefit from the delay, the market reaction suggests something else: Investors may be concerned that these firms lack the capability or motivation to engage seriously with sustainability. For long-term investors, that\u2019s a red flag.<\/span><\/p>\n<\/div>\n