The Monetary Authority of Singapore (MAS) and Singapore Exchange Limited (SGX) have recently released the findings from a study they had commissioned on the state of corporate governance of SGX-listed companies in Singapore.
The study was carried out by associate professor Mak Yuen Teen of the National University of Singapore. It was conducted by reviewing the annual reports of 659 main board and Sesdaq-listed companies to assess how well these companies have disclosed and implemented the best practice guidelines set out in the Singapore Code of Corporate Governance. Discussions were also held with a number of independent directors and other market participants to obtain further views on the subject.
The report sets out eight main recommendations to strengthen corporate governance practices of SGX-listed companies. MAS and SGX are exploring two immediate initiatives.
The first, in conjunction with the Singapore Institute of Directors (SID), is to initiate a review of how efforts in director training and professional development in Singapore can be improved.
The second is to examine giving practical guidance to audit committees on how they can better perform the critical role they play in the performance and governance of listed companies. MAS and SGX will discuss these and other initiatives with various stakeholders, including the Accounting and Corporate Regulatory Authority (ACRA), and professional associations such as the Institute of Certified Public Accountants of Singapore (ICPAS) and SID, to help determine the practical steps to enhance corporate governance of SGX-listed companies.
The full report and the executive summary can be found on the MAS website.