The Monetary Authority of Singapore (MAS) has announced that the Corporate Governance Advisory Committee (CGAC) will undertake a review of the Code of Corporate Governance (CG Code).

The review seeks to build on established good practices in corporate governance and disclosures among listed companies, and complement the ongoing work of the Equities Market Review Group.

Two Sub-Committees will support the review:

  • The first Sub-Committee will consider measures to facilitate more meaningful  implementation of the CG Code. This includes providing additional guidance and practical examples on implementing the CG Code provisions in a manner that is suited to companies’ operating contexts, such as their size and industry.
  • The second Sub-committee will consider new CG Code provisions or guidance on corporate culture, board effectiveness, and risk management in emerging areas, such as artificial intelligence. These enhancements aim to strengthen boards’ capacities to steer companies through today’s rapidly evolving landscape, while continuing to uphold long-term shareholder value.

The CGAC, which is into its third term, is chaired by Bob Tan, Chairman of Jurong Engineering Limited.

Robert Yap, Executive Chairman of Swan & Maclaren Group, and Stefanie Yuen-Thio, Joint Managing Partner of TSMP Law Corporation, will lead each Sub-Committee respectively.

It is expected that industry practitioners with expertise in the priority areas of the review will be invited to join the Sub-Committees to incorporate diverse industry perspectives. The Sub-Committees will also conduct focus group discussions to gather feedback on the proposed areas of review.

Bob Tan, CGAC Chairman, commented: "In line with the efforts of the Equities Market Review Group to strengthen Singapore’s equities market, the CGAC will be reviewing the CG Code for its continuing relevance and ensuring that its disclosure requirements are meaningful to both existing shareholders and potential investors of large cap and SME listed companies. The objective is to make our listed companies more transparent and attractive in the capital market without unduly over-burdening them with inconsequential reporting guidance or requirements."

Ho Hern Shin, Deputy Managing Director (Financial Supervision), MAS, said: "Upholding high standards of corporate governance is key for maintaining investor confidence. Alongside the proposals of the Equities Market Review, companies must continue to maintain strong governance practices and make meaningful disclosures that keep stakeholders appropriately informed. The CGAC members’ diverse expertise play a vital role in strengthening the corporate governance framework. I look forward to its recommendations."

MAS established the CGAC in 2019 as a permanent, industry-led body to advocate good corporate governance practices among listed companies in Singapore. Under its Terms of Reference, the CGAC’s role includes identifying current and potential risks to the quality of corporate governance in Singapore, and monitoring international trends. The CGAC is also tasked with revising the Practice Guidance to clarify the Code from time to time, and recommending updates to the Code. The CGAC does not carry regulatory or enforcement powers, nor does it provide opinions on ongoing cases and investigations.

Since the last major review of the CG Code in 2018, the CGAC has recommended progressive enhancements to the corporate governance framework, particularly in the areas of director independence and remuneration disclosures.

For more information on the CGAC and its work, visit www.cgac.sg