Corporate Governance Advisory Committee created in Singapore
The Monetary Authority of Singapore (MAS) has established a Corporate Governance Advisory Committee (CGAC) to advocate for good corporate governance practices at listed companies in Singapore.
The new industry-led body will be chaired by Bobby Chin, director of Singapore Telecommunications.
Creating the CGAC was recommended by Singapore’s Corporate Governance Council, which itself was set up by the MAS to review the Corporate Governance (CG) Code in 2018.
The CGAC aims to be ‘an integral part of the corporate governance ecosystem in Singapore,’ observes the MAS in a statement. The new body will also play ‘an important role in leveling up corporate governance standards and practices’, help to strengthen investors’ confidence in Singapore’s capital markets and ‘uphold Singapore’s reputation as a trusted international financial center.’
The CGAC will identify current and potential risks to the quality of corporate governance in Singapore and take a leading role in advocating for good governance practices. It will also monitor international trends, revise the practice guidance to clarify the CG Code and recommend updates to the code.
It will not carry regulatory or enforcement powers or opinion on ongoing cases and investigations. Singapore Exchange Regulation, the MAS and the Accounting and Corporate Regulatory Authority remain responsible for taking regulatory action against lapses in corporate governance. The CGAC will work closely with these organizations to uphold governance standards.
The CGAC will comprise members with extensive experience in corporate governance matters, including directors on the boards of listed entities and members of key stakeholder groups such as large and small companies, institutional and retail investors, audit and legal professionals, academia and the media.
Chin says in a statement: ‘A culture of strong corporate governance is essential to support long-term corporate performance. The changes introduced under the 2018 review of the CG Code have helped ensure Singapore’s corporate governance framework kept pace with market developments.
‘The effectiveness of the CG Code will require sustained commitment in both substance and form by companies and stakeholders. The CGAC, as an independent, standing industry-led body, is dedicated to supporting these efforts.’