|Event:||Launch of the Board Risk Committee Guide and ASEAN Corporate Governance Scorecard (ACGS) 2016|
|Date:||31 March 2016|
|Venue:||Mandarin Orchard Hotel|
|Presenter on ACGS:|| Associate Professor Lawrence Loh, Director, Centre for Governance, Institutions and
Organisations (CGIO), NUS Business School
|Panellists:||Ms Chng Sok Hui, Chief Financial Officer, Development Bank of Singapore Group
Mr Nicholas Hadow, Chairman, Investment Management Association of Singapore
Ms Agnes Koh, Chief Risk Officer, Singapore Exchange
Mr John Lim, Immediate past Chairman, Singapore Institute of Directors (SID)
Mr Yap Chee Keong, Chairman/Member of Risk Committees of InterOil Corporation,
Olam International and Tiger Airways Holdings
|Moderator:||Mr Tham Sai Choy, Chairman, KPMG in Asia Pacific and Managing Partner, KPMG in Singapore|
Close to 300 directors and top management attended the Launch of the Board Risk Committee Guide and ASEAN Corporate Governance Scorecard 2016 event organized by SID. Associate Professor Lawrence Loh, Director of CGIO presented the Singapore results of the 2015 ACGS at the conference.
The ACGS is an initiative of the ASEAN Capital Markets Forum and the Asian Development Bank to create a common tool for assessing the corporate governance of publicly listed companies (PLCs) in the ASEAN countries. The participating countries are Indonesia, Malaysia, Philippines, Singapore, Thailand and Vietnam. The 2015 ACGS results are based on companies’ disclosures on websites and annual reports with financial year end between 1 April 2014 and 31 March 2015.
Some of the key takeaways at the presentation given by Professor Loh include:
- Singapore PLCs have improved over their 2014 scores. There is notable progress across the board due to PLCs being more transparent and providing detailed disclosures on poll voting, nine-year term limit for independent directors, annual performance conducted of the board and its committees, among other matters.
- Singapore companies on average scored 74.6 points in Level 1 section, an 11.3 per cent increase from 67.0 points in 2014, a sign that Singapore PLCs have made significant efforts in providing detailed disclosures on their corporate governance practices.
- Singapore PLCs on average saw improvements in all components assessed, including rights of shareholders, equitable treatment of shareholders, role of stakeholders, disclosure and transparency and responsibilities of the Board.
In evaluating the Singapore results under the ASEAN Scorecard, Professor Loh was optimistic about the overall progress but believes more can be done to improve corporate governance in Singapore. He said: “It is encouraging to see Singapore companies becoming more transparent and forthcoming in disclosing information about the way they conduct business. However, they cannot afford to be complacent. There is much room for improvement, especially when it comes to providing comprehensive and meaningful disclosures that are relevant to helping investors make informed decisions.”
John Lim, Immediate Past Chairman of SID and the designated corporate governance expert from Singapore for the Scorecard added: “The objective of the Scorecard is to raise corporate governance standards and disclosure practices. Judging by this year’s results, we have made headway. Corporate governance is an ever-evolving framework and SID will work closely with regulators and companies to maintain this strong momentum moving forward.”
The full presentation can be accessed here.