Industry code to be reviewed to enhance corporate governance, boost S'pore equities market
The review will be undertaken by the Corporate Governance Advisory Committee, which was set up by MAS in 2019. PHOTO: ST FILE
SINGAPORE - The Code of Corporate Governance will be reviewed to enhance corporate governance practices and disclosures among listed companies in Singapore, said the Monetary Authority of Singapore (MAS) on May 29.
The review will be undertaken by the Corporate Governance Advisory Committee, which was set up by MAS in 2019 as a permanent, industry-led body to advocate for good corporate governance practices among listed companies in Singapore.
The review complements the ongoing work of the Equities Market Review Group, which was launched in 2024 to boost Singapore's equities market, MAS said, without stating the timeline for the completion of the review.
Mr Bob Tan, chairman of the advisory committee, said: 'The committee will be reviewing the Corporate Governance Code for its continuing relevance and ensuring that its disclosure requirements are meaningful to both existing shareholders and potential investors of large cap and small and medium-sized (SME) listed companies.
'The objective is to make our listed companies more transparent and attractive in the capital market without unduly over-burdening them with inconsequential reporting guidance or requirements.'
The review will be undertaken by two sub-committees.
The first sub-committee, to be led by Mr Robert Yap, executive chairman of Swan & Maclaren Group, will consider measures to help the code be implemented more meaningfully.
The measures include providing additional guidance and practical examples on implementing the code provisions, in a manner that is suited to companies' operating contexts, such as their size and industry, MAS said.
The second sub-committee, to be led by Ms Stefanie Yuen-Thio, joint managing partner of TSMP Law Corporation, will consider new code provisions or guidance on corporate culture, board effectiveness, and risk management in emerging areas, such as artificial intelligence.
'These enhancements aim to strengthen boards' capacities to steer companies through today's rapidly evolving landscape, while continuing to uphold long-term shareholder value,' MAS said of the areas that the second sub-committee will be looking into.
MAS deputy managing director of financial supervision Ho Hern Shin said in the statement that upholding high standards of corporate governance is key for maintaining investor confidence.
She said: 'Alongside the proposals of the Equities Market Review, companies must continue to maintain strong governance practices and make meaningful disclosures that keep stakeholders appropriately informed.'
She added that the committee members' diverse expertise plays a vital role in strengthening the corporate governance framework, and that she looks forward to its recommendations.
Alongside some members of the committee, industry practitioners with expertise in the priority areas of the review have also been invited to join the sub-committees.
The code was last majorly reviewed in 2018. Since then, the advisory committee has recommended progressive enhancements to the corporate governance framework, particularly in the areas of director independence and remuneration disclosures.
But the committee does not carry regulatory or enforcement powers, nor does it provide opinions on ongoing cases and investigations. The current 14-member committee serves a term from 2025 to 2028.
Sue-Ann Tan is a business correspondent at The Straits Times covering capital markets and sustainable finance.
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