MAS sets up Corporate Governance Council

Ex-chair of SGX to sit as council chair.

The Monetary Authority of Singapore (MAS) is setting up a Corporate Governance Council to review the country’s Corporate Governance Code (CG Code), which was last reviewed in 2012.

The MAS has been monitoring market developments and industry feedback to sustain corporate performance and maintain investor confidence in the country’s capital markets. Previous changes in 2012 were introduced to strengthen board independence and enhance remuneration practices and disclosures.

The Council is expected to consider how the “comply-or-explain” regime under the CG Code can be made more effective, including improving the quality of companies’ disclosure of their CG practices and explanations for deviations from the code. It will also propose mechanisms to monitor the progress made by listed companies to strengthen their corporate governance practices.

The Council will include members from various stakeholder groups, including appointees from the MAS, the Accounting and Corporate Regulatory Authority (ACRA), and the Singapore Exchange (SGX). Former SGX chairman Chew Choon Seng will serve as the Council’s chairman.

“Companies are now under increasing pressure to become more transparent and accountable to their stakeholders, and it is important for our listed companies to go beyond mere box-ticking and boiler-plate explanations, said Chew, who added that the Council will be consulting the public before finalising any changes.