MAS to set up Corporate Governance Council to enhance investors' confidence
By Rachel Kelly, Channel NewsAsia | Posted: 19 November 2009 1243 hrs

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SINGAPORE: The Monetary Authority of Singapore (MAS) said it will establish a Corporate Governance Council to promote a high standard of corporate governance in companies listed in Singapore.

Announcing this at the Asian Investors' Corporate Governance Conference on Thursday, MAS managing director Heng Swee Kiat said the council aims to maintain and enhance investors' confidence.

In turn, this will enhance Singapore's reputation as a leading and trusted financial centre and benefit all players involved.

Mr Heng said among the council's roles will be to identify opportunities for continuing professional development of directors and the development of practical guidance for board committees.

By taking into account perspectives of relevant stakeholders, he said, the council can develop initiatives that are robust and balanced and achieve broad support and alignment of all parties.

The MAS added that an important task for the council will be to review Singapore's code of corporate governance. That is because the code was last reviewed in 2005, and may be subject to evaluation following the recent financial crisis.

While some observers welcomed the move, they said it is also important for companies to conduct self-checks.

"No amount of regulation can really ensure corporate governance. What we would like to see is more self regulation and the boards of the senior management regulating themselves more actively, in particular the audit committee," said David Gerald, president and CEO of Securities Investors Association (Singapore).

The Corporate Governance Council will be made up of private and public sector members. MAS is due to announce members of the council and its terms of reference early next year.

MAS is also in the process of reviewing the Corporate Governance Framework for locally incorporated banks and insurers. The review will focus on the effectiveness of risk management at the board level.

- CNA/vm/ir