The Monetary Authority of Singapore has initiated a Corporate Governance Advisory Committee. Its key role is to advocate good corporate governance practices among listed companies here.

Singapore has established the Corporate Governance Advisory Committee (CGAC) on Tuesday at the recommendation of Corporate Governance Council. The latter body was set up to review the Code of Corporate Governance (CG Code) in 2018.

«It will play an important role in levelling up corporate governance standards and practices and help to strengthen investors’ confidence in our capital markets and uphold Singapore’s reputation as a trusted international financial centre,» said the Monetary Authority of Singapore (MAS) in a media release.

Supporting Long Term Corporate Performance

Made up of industry partners, the body comprises members with diverse and extensive experience in corporate governance matters. They include directors on the boards of listed entities and members from key stakeholder groups such as large and small companies, institutional and retail investors, audit and legal professionals, academia and the media. 

Bobby Chin, director of Singapore Telecommunications, who chairs the industry-led body, said that a culture of strong corporate governance is essential to support long term corporate performance.

«The changes introduced under the 2018 review of the CG Code have helped ensure that Singapore’s corporate governance framework kept pace with market developments. The effectiveness of the CG Code will require sustained commitment in both substance and form by companies and stakeholders,» he said.

Roles of CGAC

The CGAC will identify current and potential risks to the quality of corporate governance in Singapore, and take a leading role in advocating good corporate governance practices. It will also monitor international trends, revise the Practice Guidance to clarify the CG Code, and recommend updates to the CG Code.

The CGAC will not carry regulatory or enforcement powers or provide opinion on ongoing cases and investigations. Instead, the Singapore Exchange Regulation, the MAS, and the Accounting and Corporate Regulatory Authority remain responsible for taking regulatory actions against corporate governance-related breaches. The CGAC will work closely with these regulators to uphold corporate governance standards.