The Monetary Authority of Singapore (MAS) announced on Monday (27 Feb), that it has set up a Corporate Governance Council to review the Code of Corporate Governance (CG Code).
The Council will be chaired by Mr Chew Choon Seng, former Chairman of the Singapore Exchange (SGX), who also was chairman of the Singapore Tourism Board and chief executive of Singapore Airlines.
The CG Code was last reviewed in 2012, when changes were introduced to strengthen Board independence and enhance remuneration practices and disclosures, the MAS said.
Corporate governance practices globally have continued to evolve since then. MAS said it has been monitoring these market developments and industry feedback on how the CG Code can be improved.
MAS wrote, “A review of the CG Code and practices is thus timely to ensure that they continue to support sustained corporate performance and maintain investor confidence in our capital markets.”
The Council will consider how the ‘comply-or-explain’ regime under the CG Code can be made more effective. This includes improving the quality of companies’ disclosure of their CG practices and explanations for deviations from the CG Code.
The Council will also propose mechanisms to monitor the progress made by Singapore listed companies in strengthening their corporate governance practices.
The Council members are drawn from various stakeholder groups to provide a broad and diverse perspective on CG issues. The members are listed on the Annex.
Mr Chew Choon Seng, the Council Chairman said, “We need to ensure that our CG Code remains relevant and progressive, and supports sustained business growth and innovation. The review of the CG Code will therefore take into account changes in our corporate landscape as well as international developments.”
“With market participants paying greater attention to the corporate governance practices of listed companies, companies are now under increasing pressure to become more transparent and accountable to their stakeholders. It is important for our listed companies to go beyond mere box-ticking and boiler-plate explanations.”
“They must be able to engage meaningfully with their stakeholders and implement CG practices that lead to long-term sustainable business performance,” Mr Chew said.