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.
Join ST's Telegram channel and get the latest breaking news delivered to you.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Times
a day ago
- Business Times
MAS, SPF to block website access to Octa and XM unlicensed trading platforms from Jun 20
[SINGAPORE] The websites of unlicensed trading platforms Octa and XM will be blocked for Singapore residents with effect from Jun 20, said the Monetary Authority of Singapore (MAS) and the Singapore Police Force in a joint statement on Friday (Jun 6). 'Consumers with active accounts with Octa and XM will not be able to access their websites through Internet Access Service Providers based in Singapore,' the authorities said, noting that information on the platforms' websites constitutes prohibited content under the Internet Code of Practice. The platforms had offered and marketed services – such as trading in foreign exchange on a leveraged basis, commodities, indices and equities – to customers in Singapore without licences, which breached the Securities and Futures Act 2001 (SFA). Section 82 of the SFA states that entities require a capital markets services licence to conduct business in the regulated activity of dealing in capital markets products – which includes securities and leveraged foreign exchange trading. The Octa platform is operated by two entities, Octa Markets and Uni Fin Invest, which were purportedly incorporated in the Union of Comoros and Mauritius, respectively. Meanwhile, the XM platform is operated by XM Global, which was purportedly incorporated in Belize. As the entities operating the two platforms do not hold the requisite licence, they are prohibited from carrying out such businesses, said the MAS and the police. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up This prohibition extends to entities operating outside of Singapore should they solicit or advertise products or services targeting Singapore persons, or if a substantial number of Singaporeans use their products or services, they added. The MAS and the police urged members of the public to deal only with regulated online trading platforms with valid capital markets services licences, which are listed in the MAS Financial Institutions Directory. They highlighted that most unregulated online trading platforms are located outside Singapore and pose a greater risk of fraud as the credibility of their operations cannot be easily verified. 'In addition to being subject to the risk of financial loss, members of the public may face challenges in pursuing claims against operators based overseas,' they warned. 'Online trading platforms may also require payment for trades to be made using credit or debit cards, which gives rise to a further risk of unauthorised card transactions.'
Straits Times
a day ago
- Straits Times
MOM investigating alleged misuse of work passes meant for foreign students and trainees
MOM said some of the probes surrounding breaches of the pass requirements have already been completed with more to come. PHOTO: ST FILE SINGAPORE – Investigations are underway into what a support group for migrant workers brands a 'job scam' centred on misuse of work passes. Training Employment Passes give foreign students and intra-corporate trainees the right to work here for three months, but they have allegedly been used to employ foreign workers in lower-skilled roles that are not allowed under the pass. Some of the probes surrounding breaches of the pass requirements have already been completed with more to come, noted the Ministry of Manpower (MOM) on June 6. It did not disclose how many reports it had received. The pass allows foreign students or trainees from a company's overseas office or subsidiary to undergo practical training for professional, managerial, executive or specialist jobs here for up to three months. Trainees must earn a minimum fixed salary of $3,000 a month. The work attachment f or student applicants must be tied to their studies. T hey must either be studying in an 'acceptable institution' or earning at least $3,000 a month. The investigation comes after 13 TEP holders sought help in recent months from advocacy group Transient Workers Count Too (TWC2). They were hired by employers to take up various roles with a lower skill level than the pass appears to allow. Five of the 13 were put to work in a food and beverage establishment, five in a warehouse, two in cleaning companies while one ended up in a 'tour coach agency',TWC2 said on its website last month. The 13 people had turned to TWC2 over a period of about five months starting in December 2024. 'We have never before seen so many workers on this kind of work pass in such a short time,' TWC2 said. The group added that nearly all the 13 complained about salary irregularities, including being paid below the $3,000 stated minimum, though at least one found long working hours to be the biggest problem. 'However, when we found out more about the circumstances which led to their working in Singapore, we could see the contours of a rapidly widening job scam,' TWC2 noted. The workers had been designated as 'management executives' despite performing menial tasks such as washing dishes, it added. They were often not sent to the MOM to have their TEP issued until nearly 30 days after arrival, effectively meaning they worked an additional fourth month without a pass being issued. TWC2 executive director Ethan Guo told The Straits Times that a common feature was that most of the workers were coming to work for the first time in Singapore and had arrived relatively recently. 'This showed that these were young, impressionable and vulnerable foreigners with little or no knowledge of employment laws in Singapore,' Mr Guo noted. He added that the group could not confirm if there has been a sudden uptick in the number of TEP holders reporting salary irregularities. 'What has happened of late was a concerted effort by TWC2 to educate migrant workers on the correct payment of their salaries, and this could have resulted in more workers with such problems coming forward to seek help from us,' he said. They may have been many more victims in the past who did not realise they have been scammed, or did not have an avenue for assistance. Mr Guo said TWC2's concern lies with workers who have been misled into jobs they paid huge sums to agents for and then put into 'legal jeopardy once they agree'. He noted that the attempts to dodge the TEP requirements may have arisen as a work-around for industries 'desperate for cheap foreign labour'. 'A more holistic response would be a review of work permit quotas for these industry sectors like logistics, cleaning and food and beverage.' However, Mr Guo added that TWC2 is not advocating a massive liberalisation in foreign workforce policy, as making cheap labour too easily available could blunt the incentive for employers to pursue automation and productivity improvements. The MOM also said it performs additional checks and audits on selected TEP applications, such as requesting proof of training programmes and foreign offices or subsidiaries. It noted that it will take action against errant employers, including suspending their work pass privileges, imposing financial penalties or even prosecution. The ministry also encouraged affected workers to reach out for assistance. Join ST's Telegram channel and get the latest breaking news delivered to you.
Straits Times
a day ago
- Straits Times
Growing Temasek: Lim Boon Heng's contributions as chairman over the years
Mr Lim Boon Heng, who was appointed chairman in 2013, will step down from his role in October. PHOTO: ST FILE SINGAPORE – Temasek chairman Lim Boon Heng oversaw key changes during his tenure, including a board renewal, leadership transition and the development of the state investor's long-term strategy. Mr Lim, who was appointed chairman in 2013, will step down from his role in October. He will be succeeded by former senior minister Teo Chee Hean, who will first join Temasek's board as deputy chairman on July 1, before taking the helm in October. Here is what Temasek achieved during Mr Lim's tenure: Growth as an international investor Temasek established itself as a global investor, with its net portfolio value rising from $223 billion in March 2014 to $389 billion in March 2024. Singapore's investment company also grew its footprint across Europe and the US, which now hosts six of its 13 international offices. It expanded its global advisory network, supplementing its Temasek International Panel with three regional panels – the Temasek European Advisory Panel and the Temasek Americas Advisory Panel in 2016, as well as the the Temasek South-east Asia Advisory Panel in 2023. Mr Lim, a former minister in the Prime Minister's Office and secretary-general of the National Trades Union Congress from 1993 to 2006 , oversaw the Temasek board's renewal process, including increasing its international representation. He also oversaw Temasek's leadership transition in 2021, when Ms Ho Ching stepped down as executive director and chief executive. Shaped Temasek's purpose, charter and T2030 Strategy Under Mr Lim's leadership, Temasek launched its 'T2030' strategy in 2019 to build a resilient and forward-looking portfolio, and refreshed its Charter in 2024 to reaffirm its commitment to sustainable long-term returns. Mr Lim also articulated Temasek's Purpose statement – So Every Generation Prospers – in 2021, strengthening the company's organisational alignment and direction. Recognised for high standards of corporate governance and sustainability Temasek was ranked first in Global Sovereign Wealth Fund's governance, sustainability and sesilience scoreboard in both 2023 and 2024. Temasek expanded its sustainability initiatives during his tenure, including the annual Ecosperity conference which has been held since 2014, and has actively engaged its portfolio companies through forums such as the Temasek Roundtable. Built resilience in the workforce and communities Mr Lim launched the Temasek Tripartite Conversations to tackle issues such as artificial intelligence (AI) and green jobs, and marked Temasek's 50th anniversary in 2024 with a $150 million fund to support skills training and talent development in Singapore. Temasek executive director and chief executive Dilhan Pillay Sandrasegara said on June 6 that the company has strengthened its position as a globally recognised investment company under Mr Lim's leadership. 'His championing of the Temasek Tripartite Conversations has been particularly meaningful –these dialogues have built important bridges between Temasek, our portfolio companies, and union representatives, creating a culture of trust and collaboration that fortifies the ecosystem with greater resilience,' he said. During the Covid-19 pandemic, Temasek – together with its portfolio companies, Temasek Foundation and partners – led response efforts that included distributing essential supplies and medical equipment. Mr Lim said he has been privileged to work with a capable and dedicated team 'unified by a strong sense of purpose and commitment to excellence'. 'I am always inspired by my colleagues' collective conviction that, like generations before us, we must always act today with tomorrow clearly in our minds,' he said. 'My deep gratitude goes to my fellow board members and the Temasek team as we continue to build resilience throughout Temasek, our portfolio companies, and our ecosystem. Together, we can navigate uncertainties and emerge stronger.' Temasek, alongside sovereign wealth fund GIC and central bank the Monetary Authority of Singapore, is a significant contributor to Net Investment Returns Contribution, which is used for government spending. Join ST's WhatsApp Channel and get the latest news and must-reads.
