The Monetary Authority of Singapore (MAS) announced on Wednesday that the Corporate Governance Advisory Committee (CGAC) will lead a review of the Code of Corporate Governance (CG Code), aiming to ensure its relevance and effectiveness amid evolving business and regulatory landscapes.
The review will support MAS’s broader objective of strengthening Singapore’s equities market, aligning with ongoing efforts by the Equities Market Review Group.
It will assess current governance practices among listed companies and explore enhancements to transparency, board effectiveness, and risk oversight, particularly in emerging areas such as artificial intelligence.
Two sub-committees have been formed to support the review. One will focus on facilitating the practical application of the CG Code across different business contexts, while the other will propose updates related to corporate culture, board performance, and governance in high-growth, high-risk sectors.
The CGAC, now in its third term, is chaired by Bob Tan, Chairman of Jurong Engineering. Robert Yap of Swan & Maclaren Group and Stefanie Yuen-Thio of TSMP Law Corporation will head the two sub-committees.
MAS emphasized that the review aims to strike a balance between promoting transparency and avoiding unnecessary compliance burdens for both large-cap and SME-listed firms.
It also highlighted the importance of corporate governance in maintaining investor confidence and ensuring that disclosures remain meaningful to stakeholders.
Focus group discussions and industry consultations will be conducted as part of the review. The CGAC will also consider international best practices and risks that could impact corporate governance quality in Singapore.
The CGAC, established in 2019, functions as a permanent advisory body to monitor trends and recommend updates to the CG Code. It does not hold regulatory or enforcement authority.
Since its last major update in 2018, the CG Code has undergone enhancements related to board independence and executive remuneration disclosures.
Business News Asia