'The biggest gain is perhaps an improvement in corporate governance. As firms will need to be accountable to shareholders, regular reporting requirements and transparency in business decisions are both likely to strengthen,' Chan said.

This enables early detection of business risks, helping prevent corporate disasters, which have wide ramifications including a rise in unemployment.

Also according to Moody's Economy.com, the stronger disclosure requirements and exposure to market forces will boost efficiency and encourage innovation.

'Management will more closely monitor their own performance as the public can easily assess their output,' Chan said.

'In some cases, pressures from the market also encourage innovation, as firms need to remain competitive against rivals. Business restructure may be an inevitable result of the part privatisation of state-owned enterprises.'