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Business Times
4 days ago
- Business
- Business Times
The evolving role of listed company directors
Singapore is on a mission to revitalise its capital markets. A high-level working group chaired by Minister for National Development Chee Hong Tat has been set up, and a slew of measures have been rolled out. Most recently, the Monetary Authority of Singapore (MAS) placed S$1.1 billion into the hands of an initial three fund managers to invest in Singapore Exchange-listed stocks, with an additional S$3.9 billion to come. It has further committed S$50 million to support equity research and reinvigorate the listed product ecosystem. Other initiatives have been announced, including to boost investors' recourse against errant boards and management. In tandem, the Code of Corporate Governance is being refreshed. At the same time, high drama has played out on Singapore's corporate stage. The battle for control of the boardroom in family-controlled City Developments Limited kept the business community glued to the news for weeks. The liquidators' claim against Goh Jin Hian, a non-executive director in a company defrauded by the executive management who had absconded, raised alarm in the independent director community. A collective sigh of relief was heaved in boardrooms when the Appellate Court reversed much of the High Court decision, clarifying that the role of a director is to be sentinel, not sleuth. These cases engendered some soul-searching into the nature of directors' duties in Singapore. Regulatory and shareholder demands on directors are clearly increasing. Concurrently, the issues that the boards of today are required to oversee are expanding in number and complexity. A NEWSLETTER FOR YOU Friday, 12.30 pm ESG Insights An exclusive weekly report on the latest environmental, social and governance issues. Sign Up Sign Up It is high time to re-examine the role of directors in listed companies. Directors' expanded duties The Companies Act requires directors to manage the business of the company, and to act in its best interests, honestly and with reasonable diligence. In law school, undergrads are taught that the interest of the company is that of the shareholders when the company is solvent, and its creditors when it is not. But the business landscape has changed. Additional 'stakeholders' have sprung up. Environment, social and governance (ESG), charitable endeavours and environmentally friendly business practices may not directly improve the bottom line for shareholders, but are becoming metrics against which the company's directors are measured. Now layer on the fact that the world has become more complex. While directors previously focused mainly on financial, legal and operational concerns, they must now grapple with serious emerging issues such as climate change, sustainability and cybersecurity, which require specialist expertise beyond the average lawyer or accountant. More shareholder activism also increases the risk of directors being sued. In this evolving operating environment, what is the new role of the listed company director? I suggest that directors' obligations fall broadly into two baskets. Risk management First comes risk management. This is the traditional understanding of the board role, and the aspect that the Companies Act and common law have articulated in detail. Into this basket falls managing legal, financial and business risks, all well understood by the business community. But the range of risks facing companies has expanded significantly. ESG reporting is now mandated by listing rules and is a key metric used by institutional investors to evaluate a company, before they plough in capital. Under this broad umbrella, climate change, diversity in hiring policies and sustainable business practices have become hard deliverables. Compliance is another growing area of risk, with more global scrutiny on anti-money laundering, anti-bribery and regulatory compliance. And those are just the newly added risks facing boards today. Directors also have to consider emerging risks. The rise of artificial intelligence (AI), the acceleration of digital disruption and increasing instances of cyberattacks make technology-associated risks a concern. Beyond these, the modern listed company director must also stay on top of geopolitical and societal developments to consider their likely future impact on the company and the industry in which it operates. Value creation The second basket – that of director as value creator – is less commonly recognised. 'Value creation' sounds like a waffly, intangible mission, but is an increasingly critical one. Previously, the equation was simple. It was for management and the controlling shareholders to build the business. If the business did well, profits would go up and public investors would pile in. In today's world, listed companies navigate more complex terrain. Profitability is no longer the only game in town. A small/medium business may be money-making but if there is scant research coverage, retail investors will not know about it, especially if it is not in a sexy sector. Investor relations skills are thus crucial to put the company on investors' radar screens. Also important is understanding the metrics that institutional investors use to assess potential buy orders, in order to effectively position your business to greater advantage. While profitability is still important, nowadays investors – especially the more sophisticated ones who can write larger cheques – consider a wider range of factors. Among them, ESG performance, growth potential and market penetration. Boards also have to provide oversight on strategy and long-term sustainability. Keeping abreast of technological advancements and even changing societal expectations will be key performance indicators. Nor can stakeholder and brand management be ignored. Companies may get punished for unethical decision-making or delayed disclosures. The crisis management response that data platform company Astronomer swung into when its chief executive and its human resource head were caught canoodling at a Coldplay concert – hiring Hollywood star Gwyneth Paltrow to front a disaster recovery publicity campaign – showed the need for a smart, substantive and speedy reaction. Reinventing the Singapore listed company director Singapore boards need to understand the expanded purview of their roles, and move beyond traditional risk management. They also need equipping. Diversity targets, net-zero aspirations and external communications are new and varied challenges. Courses should be structured to prepare them for the new iteration of their role. These could include baseline skills for small/medium companies such as investor relationship management and presentation skills. More established companies would need help in forward-looking training, for example understanding the complexities of ESG compliance to implement effective change and not just produce a virtue-signalling Sustainability Report. Capacity-building related to AI adoption to unlock productivity savings and to manage cyber risks is also needed. We are on track to improve our capital market. Market sentiment has improved since the MAS announcements. But government capital to shore up the stock market is not sustainable. To attract big foreign money, small and medium Singapore companies will need to embrace a broader definition of corporate governance, and ultimately reinvent the board to be future-ready. The writer is joint managing partner, TSMP Law Corp
CNA
5 days ago
- Business
- CNA
Singapore raises building height limits near airports following review
SINGAPORE: Buildings near airports in Singapore can now be built taller - potentially by up to 15 storeys for residential developments, and up to nine storeys for industrial or commercial buildings - following a review of height restrictions. The Civil Aviation Authority of Singapore (CAAS) said on Tuesday (Aug 5) that it has updated its rules in line with international guidelines on how tall buildings and structures can be near airports. In May, then-Minister for Transport Chee Hong Tat said that CAAS had been working with the International Civil Aviation Organization (ICAO) to explore freeing up airspace around airports for developments. The authority noted that this was the first time ICAO had reviewed its height restriction standards since the 1950s. "The revised regulations will enable aircraft operations in Singapore to be safeguarded with more precision according to the specific type of operations at each airport and free up more airspace surrounding airports in Singapore for development," CAAS said on Tuesday. "Specifically, this will present opportunities for building height limits and development intensity to be raised in some parts of Singapore." CAAS added that government agencies are still studying how tall and dense future developments near airports can be, taking into account infrastructure capacity and the need to preserve a quality urban living environment. The revised limits stem from a review conducted by an international task force, established in 2015 and chaired by CAAS since 2017. In its review, the task force took a data-driven approach, considering factors such as advancements in aircraft electronic systems and air navigation technology, with input from industry stakeholders and technical panels. Said CAAS director-general Han Kok Juan: "Singapore is honoured to contribute to this major review, including through our chairmanship of the international taskforce. "It will support developments and benefit many countries around the world, including for land-scarce Singapore. This effort underscores the value of collaboration through multilateral institutions and the ability of Singapore and Singaporeans to make meaningful contributions." CAAS said that one of the key updates is the introduction of surface classifications around airport runways: Obstacle-Free Surfaces (OFS) and Obstacle Evaluation Surfaces (OES). OFS are surfaces near the runway that are crucial for safe landings, while OES are surfaces designed to safeguard specific flight paths and procedures used at the runway. The previous model was a "one-size-fits-all" approach that often required more airspace to be reserved for aviation operations. This new classification, however, allows airports to apply rules that match their specific flight operations, noted CAAS. Mr Chee said in May that the change will support further land intensification, which he described as important because of the scarcity of land in Singapore.
AsiaOne
31-07-2025
- Business
- AsiaOne
3-room and bigger Tampines, Toa Payoh BTO flats most popular with first-timers in July HDB launch, Singapore News
Three-room and bigger Built-To-Order (BTO) flats in Tampines and Toa Payoh were the most popular among first-time home buyers in the July 2025 sales exercise which closed on Wednesday evening (July 30). According to information on HDB's service portal at 5pm, more than 22,000 BTO applications were received. This was higher than the 13,200 applications received in the February sales exercise, said National Development Minister Chee Hong Tat in a Facebook post on Thursday. Simei Symphony in Tampines saw nearly 2,400 first-and second-timer families applying for the 240 units of four-and five-room standard flats available. The project - within walking distance to the Downtown Line's Upper Changi MRT station and the Singapore University of Technology and Design - had more than six first-timer families applying for each of the 140 four-room units, and almost eight first-timer families applying for each of the 100 five-room units. The last HDB project in the area was Parc Lumiere, a Design, Build and Sell Scheme (DBSS) development which was completed in 2011. Over in Toa Payoh, the 741-unit Toa Payoh Ascent received more than 5,800 applications from first-and second-timer families. In particular, there were more than six applications for each of the 468 four-room units. Located at the junction of Toa Payoh Rise and Braddell Rise, the BTO project is within walking distance to Caldecott MRT station which serves as an interchange for the Circle Line and Thomson-East Coast Line. Both BTO projects are also popular with first-timer singles with almost 42 applications for each of the 140 units of two-room flexi flats in Tampines, and more than 18 applications for each of the 195 flexi flats in Toa Payoh. At the Sembawang Beacon project, the first in Sembawang North, there were 905 applications for the 607 units of three-room and bigger BTO flats available. In his Facebook post, Chee Hong Tat said that the median application rate of 1.4 for three-room and bigger BTO flats among first-timer families was slightly higher than the application rate of 1.1 in February's exercise. He added that this was lower than that of the three sales launches in 2024, which ranged from 1.6 to 2.6. The July exercise is also the first since the Housing Board announced that singles applying for new flats can join married couples in getting priority access when they buy a home near or with their parents. The new Family Care Scheme (Proximity) streamlines three priority schemes and allows both parents and children to have priority access if they are applying for a new flat to live with or near each other, regardless of marital status. A second component of the scheme, which grants singles priority if they jointly apply for two units in the same BTO project with their parents, will kick in from the October sales exercise. Continued demand for two-room flexi flats Demand for two-room flexi BTO flats remained strong among single and seniors with over 7,000 applications for the 1,321 two-room flexi flats available. Across the seven projects offering two-room flexi flats, the median application rate was 2.5 for seniors and 8.4 for singles. Meanwhile, the median application rate for first-timer families for Sale of Balance Flats (SBF) dropped to 1.8, from 2.6 in February 2025. Three-room SBF flats in Ang Mo Kio, Choa Chu Kang, Geylang, Jurong East/West, Kallang Whompoa, Queenstown, Toa Payoh and Woodlands were least chosen by first-timer families, with less than one application per unit. HDB will offer about 9,100 flats in Ang Mo Kio, Bedok, Bishan, Bukit Merah, Jurong East, Sengkang, Toa Payoh and Yishun for the next sales exercise in October. [[nid:720412]] editor@
CNA
30-07-2025
- Business
- CNA
About 22,000 applications received in July BTO sales exercise so far: Chee Hong Tat
SINGAPORE: About 22,000 applications had been received for the flats in the ongoing Build-to-Order (BTO) sales exercise as of 5pm on Wednesday (Jul 30), said National Development Minister Chee Hong Tat. This was higher than the 13,200 BTO applications received by the Housing and Development Board (HDB) in the previous sales exercise held in February, when there were 5,032 BTO flats put up for sale. This time, 5,547 BTO flats have been launched across eight projects – located in Bukit Merah, Bukit Panjang, Clementi, Sembawang, Tampines, Toa Payoh and Woodlands – to meet the diverse needs and budgets of home buyers, said Mr Chee in a Facebook post on Wednesday. The July sales exercise, which started on Jul 23, ends at 11.59pm on Wednesday. So far, the median application rate for three-room and bigger BTO flats among first-timer families stands at 1.4. This is slightly higher than the rate of 1.1 seen in February's exercise, the minister said. However, the rate is lower than those seen in the three BTO sales exercises held last year, which ranged from 1.6 to 2.6. PRIME BTO PROJECTS SEE HIGH DEMAND Among the new BTO projects on offer, four were Prime projects, which come with subsidy clawbacks that are the highest to date. The Clementi Emerald project, which is close to Clementi MRT station, has a subsidy clawback rate of 12 per cent, while the other three – Toa Payoh Ascent, as well as Alexandra Peaks and Alexandra Vista in Bukit Merah – come with a subsidy clawback rate of 11 per cent. Prime flats in the last two exercises had subsidy clawback rates of 9 per cent. The higher rates for the latest projects correspond to the extent of the extra subsidies offered for them, HDB had said. Prime flats are one of three categories of BTO flats, alongside Standard and Plus. These flats are located in 'exceptionally good locations' and come with more subsidies to keep them affordable. 'This is to ensure that BTO flats in attractive locations remain affordable, accessible and inclusive for Singaporeans,' said Mr Chee. But to maintain fairness, these flats also come with stricter resale rules, like a 10-year minimum occupation period and subsidy clawbacks. That said, the higher subsidy clawback rates did not seem to deter demand for the latest Prime projects, which had attracted more than 12,000 applications as of 5pm, according to Huttons Asia's senior director of data analytics Lee Sze Teck. Close to 5,900 applicants were vying for the 741 flats on offer at Toa Payoh Ascent. This demand – it accounted for almost half of the total applications received for the Prime projects – is unsurprising given the project's central location, as well as proximity to Caldecott MRT station and a number of schools, such as CHIJ Primary Toa Payoh, CHIJ Secondary and Raffles Girls' School, analysts said. 'We think applicants could also be attracted to the future development plans in the Toa Payoh Rise area, where more housing and mixed-use projects may potentially come on,' said PropNex CEO Kelvin Fong. Alexandra Peaks and Alexandra Vista in Bukit Merah saw more than 3,300 applicants for 1,107 flats, while Clementi Emerald, the project with the highest subsidy clawback, received more than 3,100 applications for its 753 units, according to Huttons Asia. The demand for flats at Clementi Emerald was likely due to a variety of factors such as the project's location in the mature estate of Clementi, proximity to Clementi MRT station and shorter waiting time of less than three years, said Mr Lee. That said, 'it is possible that applications could have been higher if not for the 12 per cent subsidy recovery rate – the highest clawback rate for Prime BTO projects so far', said Mr Fong. Among the Standard projects, the most popular was Simei Symphony, located in the Simei estate within Tampines town, which had about eight first-time applicants vying for each of its 100 five-room flats. The project's 140 four-room flats had a first-time application rate of 6.4, meaning about six first-time applicants were vying for each unit, based on HDB's website, which was last updated at 5pm. Mr Lee attributed the high application rates to factors such as the pent-up demand for flats in the area, since the project is the first new public housing project in Simei in more than 10 years. In addition, the Standard classification of this project would appeal to home buyers who do not want to be bound to tighter resale restrictions and a longer minimum occupation period, said Mr Fong. The ongoing sales exercise also saw the launch of 4,662 Sale of Balance Flats (SBF) units. For three-room and larger balance flats, the median application rate for first-timer families was at 1.8, a drop from the rate of 2.6 seen in February, when there were 5,590 SBF units on offer, said Mr Chee. Huttons Asia's Mr Lee said the ongoing BTO exercise likely drew more applicants this time than the SBF exercise due to an offering of projects in more popular locations, such as Bukit Merah, Clementi, Toa Payoh and Tampines. Echoing that, PropNex CEO Kelvin Fong said: "The record-high proportion of Prime flats in attractive locations offered in this exercise, along with the introduction of priority access for singles who wish to live near their parents, may have collectively contributed to the healthy number of applicants." July's sales exercise marked the implementation of a slew of policy changes, including the inclusion of singles in an improved Family Care Scheme, which gives priority to BTO applicants looking to live with or near their parents. With that, the authorities 'continue to see strong interest' among first-time singles for two-room flexi flats islandwide, said Mr Chee. Other policy changes include a larger allocation quota for second-time families applying for three-room and larger flats, and an expansion in the rules for the deferred income assessment such that only one party in a couple needs to be a recent or current full-time student or national serviceman. Previously, both parties needed to meet the requirement.
Straits Times
30-07-2025
- Business
- Straits Times
Tampines, Toa Payoh BTO flats most popular among first-time home buyers in July HDB launch
Sign up now: Get ST's newsletters delivered to your inbox SINGAPORE - Flats in Tampines and Toa Payoh were the most popular among first-time home buyers in the latest Build-To-Order (BTO) sales exercise. For three-room and larger BTO flats, there was a median of 1.4 first-timer family applying for each of these units, according to the Housing Board's figures as at 5pm on July 30. National Development Minister Chee Hong Tat said in a Facebook post that the first-timer family application rate in the latest exercise was slightly higher than the 1.1 in February's exercise. But the rate was lower than the three sales launches in 2024, which ranged from 1.6 to 2.6, he added. Applications show the most popular units were the four- and five-room flats at Simei Symphony in Tampines. The project had nearly eight first-time applicants vying for each of the 100 five-room flats, and more than six first-timers for each of the 140 four-room units. Simei Symphony, located in Simei Road and Upper Changi Road East, is among four Standard projects on offer in July. Flats in these projects will not have additional restrictions upon resale, and come with a minimum occupation period (MOP) of five years, instead of the 10 years for Plus and Prime projects. Mr Lee Sze Teck, senior director of data analytics at real estate firm Huttons Asia, said that there was pent-up demand for the Simei BTO project as it is the first public housing project in the area in more than 10 years. Top stories Swipe. Select. Stay informed. 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Singapore University of Technology and Design, Singapore Expo and Changi Business Park are also located near the development. At Toa Payoh Ascent, 6.1 first-time applicants were vying for each of the 468 four-room flats in the Prime project. The subsidy recovery for this project upon resale has been set at 11 per cent. The latest HDB launch is the third under the new flat classification system , which sorts BTO projects into Standard, Plus and Prime categories based on their proximity to the city centre, transport connectivity and amenities. Plus and Prime flats, which are in more attractive locations, come with a subsidy clawback clause and a 10-year MOP. Some 5,547 flats are on sale across eight projects in Bukit Merah, Bukit Panjang, Clementi, Sembawang, Tampines, Toa Payoh and Woodlands. Applications will close at 11.59pm on July 30 on the HDB Flat Portal. July's exercise included 775 BTO flats from the first project in the new Sembawang North neighbourhood. The development is bounded by Admiralty Link, Admiralty Lane and Canberra Road. At the Sembawang Beacon project, five-room and three-generation units were under-subscribed among first-time applicants, all of whom will get a chance to select a unit. The first-timer application rate for this project was 1.2 for three-room flats, while the rate for four-room units stood at 1.1. At two projects with shorter waiting times of less than three years – Bangkit Breeze in Bukit Panjang and Clementi Emerald – some flat types were over-subscribed. At Clementi Emerald, a Prime project in Clementi Avenue 9, there were 2.9 first-time applicants vying for each of the 420 four-room flats. Four- and five-room flats in Bangkit Breeze, a Standard project in Bukit Panjang Ring Road, had first-timer application rates of above one. Three-room flats were under-subscribed among first-timers across both projects. Meanwhile, demand for two-room flexi BTO flats remained strong among singles and seniors. As at 5pm, there were more than 7,000 applicants for the 1,321 two-room units on sale. The median application rate across the seven projects offering two-room flexi flats was 8.4 for singles and 2.5 for seniors. Huttons Asia's Mr Lee noted that more favourable policies for singles could have led to the higher application rate compared with the rate of 5.2 in February's sales exercise. Application rates for single home buyers have surged since the sales exercise in October 2024, when singles could apply for two-room flexi flats across all locations, instead of being restricted to non-mature estates. The new Family Care Scheme also kicked in from July's BTO exercise. Under the scheme, first-timer singles will be granted priority access within the existing quota for single buyers when they buy a two-room flexi flat near or with their parents. A second component of the scheme, which grants singles priority if they jointly apply for two units in the same BTO project with their parents, will kick in from the October sales exercise. In October, HDB will offer about 9,100 flats in Ang Mo Kio, Bedok, Bishan, Bukit Merah, Jurong East, Sengkang, Toa Payoh and Yishun.
