1 Mr John Lim, Past Chairman, Singapore Institute of Directors (“SID”),Professor Lawrence Loh, Centre for Governance and Sustainability (“CGS”), NUS Business School,Ladies and gentlemen, a very good morning to you.
2 Thank you for taking time to attend this briefing and for having me join you today.
3 I would first like to thank SID and CGS for your continuous partnership with MAS to enhance corporate governance (“CG”) practices in Singapore. The ASEAN Corporate Governance Scorecard (“ACGS”) is a key feature of this partnership. The consortium of SID-CGS has been Singapore’s Domestic Ranking Body for the ACGS assessment since 2013. It has played two key roles in improving CG practices. First, in assessing Singapore’s listed companies against the ACGS. Second, it is a peer reviewer of CG practices in other ASEAN jurisdictions.
4 I believe many of us gathered here today see the value of good corporate governance, whether as a Board member or senior management of a company, an investor or a stakeholder. One key question we might ask ourselves is how does one measure corporate governance or know if a company’s practices are adequate? The ACGS is one such tool to facilitate this discovery. It was developed using global principles and internationally recognised good practices such as the G20/OECD Principles of Corporate Governance. The ACGS can play a useful role in promoting good corporate governance, spurring discussion on the practices that are best suited for a company, and this can create value for both companies and investors. Let me outline three key points:
(i) First, the scorecard provides a systematic framework to identify areas where companies have done well, as well as where improvements can be made. Companies can also evaluate their states of progress by comparing their scores over time. In addition, they would be able to benchmark where they stand relative to peers, and learn from others’ good practices;
(ii) Second, the ACGS offers investors insights into corporate governance practices across companies in ASEAN. The scores are available on the websites of the ASEAN Capital Markets Forum (“ACMF”)