Posts Tagged 'SGX'

Branding corporate governance


It is unfortunate that not many companies capitalise on their strong corporate governance practices even though the latter should be an integral part of their overall strategy of branding and positioning.

This observation was made by John Lim at the recent launch of the ASEAN Corporate Governance Scorecard 2014 results. Mr Lim, who is Singapore’s nominated corporate governance expert to the ASEAN Scorecard expert group, said: “Many of the Singaporean companies have not scored as well as they should as they did not fully disclose their corporate governance practices. Corporate governance is like justice, it must not only be done but also be seen to be done; hence the need for good and full disclosure.”

This lack of disclosure by companies of even their laudable attributes could be one of the reasons why SGX– listed shares are under-appreciated. Currently, around half of listed companies are trading at, or below, book value.

Listed companies, especially, need to play their part in attracting the attention of investors. They need to be more focused on communicating and branding their key assets, one of which could be their corporate governance practices.

Branding is about delivering on a promise, and doing so consistently. Most directors understand the need to market their company’s products and services, and the important role that brand values play in securing and keeping customers.

What companies need to do more is to apply this thinking to their shares.

If the company’s shares are a product and investors are the customers, what is the brand value that the company stands by? What is it that the directors and management want the shares to be known for in the market? What will keep investors buying the shares, or holding onto them for a long time? Read more here.

SMEs should start corporate governance process early: SGX chairman

by May Wong, for Channel New Asia, March 19, 2010.

SINGAPORE: Small and medium-sized enterprises (SMEs) should start their corporate governance process early and the business chambers should help them, according to Singapore Exchange chairman J Y Pillay.

Mr Pillay was speaking at an event organised by the Singapore Chinese Chamber of Commerce and Industry.

SMEs often lack resources for a comprehensive corporate governance system. But Mr Pillay said if they have good governance in place, they can adapt and evolve best practices for their business needs.

He said: “Sound governance should not be perceived as an undesirable accompaniment of corporatisation and globalisation, a chore to be fulfilled for form’s sake. It is a pre-requisite to continued growth and successful integration into a globalised world.”

Participants at the event agreed that business chambers can help SMEs with sound governance.

Seow Choke Meng, chairman, Research & Publications Committee, Singapore Chinese Chamber of Commerce & Industry said: “It is good always to start this early. When you really list it, or establish a big company, it is all in place and it can take you on to much further heights.

“Chamber is in full agreement and Chamber will look at how we can help our SME members to acquire these practices.”

Lui Seng Fatt, lead, independent director, Ying Li International Real Estate said: “As an SME, if you have an aspiration to grow into a larger company, (if) you want to go beyond Singapore, (if) you want to go into the market to raise funds, I think you have to start very early on the corporate governance…(continue reading)

Monetary Authority Of Singapore Announces Composition Of The Corporate Governance Council

by Mondo Visione, February 4, 2010.

The Monetary Authority of Singapore (MAS) has announced today the composition of the newly established Corporate Governance Council.

2. The Council will be chaired by Mr Alan Chan, Chief Executive Officer, Singapore Press Holdings Limited. Members of the Council are drawn from the business community and stakeholder groups, and have been appointed for a two-year term from 1 February 2010 (see Annex for a list of the members). Representatives from MAS, the Accounting and Corporate Regulatory Authority (ACRA) and Singapore Exchange Limited (SGX) will be appointed to the Council on an ex-officio basis. The Council may draw on the assistance of other individuals in the course of its work.

3. The Council seeks to promote a high standard of corporate governance in companies listed in Singapore, so as to maintain investors’ confidence and enhance Singapore’s reputation as a leading and trusted international financial centre. The Council will also play an advisory role to MAS, ACRA and SGX on matters relating to corporate governance, such as the Code of Corporate Governance and relevant rules and regulations pertaining to companies listed in Singapore. The Council will also identify opportunities for continuing professional development of directors and the development of practical guidance for Board committees of listed companies…(continue reading)

Insurance Executive Sees Corporate Governance as Means for Companies to Achieve Growth in Asia

by Jodi Dorman, for PRNewswire, October 7, 2009.

Speaking before a meeting of more than 180 business leaders here, an insurance executive encouraged Asian companies to adopt good corporate governance practices as a means toward achieving stronger and faster growth. The conference, involving corporate CEOs and CFOs, regulators and other government officials, followed the recent adoption of new corporate governance standards and regulations in Singapore and other markets.

As local and foreign-owned companies of all sizes “seek to expand their global footprint, raise new capital or tap new markets, they face exposure to a host of sometimes unfamiliar legal liabilities for which they must be fully prepared,” said Moses Ojeisekhoba, senior vice president and Asia-Pacific zone officer for the Chubb Group of Insurance Companies. “While there is no fail-safe way for companies to meet all these new global challenges, enshrining good corporate governance practices — focusing on core corporate principles of responsibility, accountability, fairness and transparency — provides a crucial base. The success of a company’s corporate governance is reflected not only in its reputation but also more tangibly in its ratings and ability to access capital, local as well as foreign.”

On August 22, the Singapore Exchange Limited (SGX), the local stock exchange, announced a series of new corporate governance measures. During the conference’s keynote address, SGX CEO Hsieh Fu Hua outlined some of the measures, including the appointment of CFOs and independent directors at least six months in advance of initial public offerings and sign-offs by local firms when foreign accountants conduct audits…(continue reading)

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