Important baseline market practices that should apply to every firm – or CG “hygiene” requirements – are hardened by their inclusion in the SGX Listing Rules. Indeed, twelve basic requirements previously couched as guidelines have been shifted from the Code to the Listing Rules. In other aspects, the Code has been streamlined and elaborated in the Practice Guidance. In considering what should be mandatory in the SGX Listing Rules, Council members had carefully considered their effectiveness in supporting long-term business goals, and how the revised Code compares against international practices. There may be some concerns that some of the principles in the Code are subject to interpretation and gaming. I can understand such sentiments. This is why the MAS has also accepted the Council’s recommendation to set up a standing Corporate Governance Advisory Committee to monitor CG developments on a regular basis, and you can expect more details on this Committee once it is set up. There are other views calling on regulators to adopt quicker or harsher actions in response to CG violations. Some felt that directors should be held more accountable for their fiduciary duties, or breaches in their fiduciary duties. Investigations are usually complex and time-consuming affairs especially if there are crossborder elements involved. At the same time, it is important that our financial sector operates with a clear rule of law, as well as fair and transparent legal processes. This is to assure a trusted regime for everyone. We must allow for thorough investigations as a matter of legal and investigation integrity.

For market discipline to work, it is essential that companies provide relevant and meaningful disclosures. Investors, in turn, can play an important role by scrutinising disclosures and providing relevant feedback to companies where boilerplate disclosures are ambiguous or unhelpful. Companies must similarly play their part to engage their stakeholders proactively. The engagement between companies and shareholders should be conducted responsibly by both parties. Companies should avoid taking an overly-legalistic approach in their dealings with shareholder queries as that can only engender distrust. Rather, they can have more regular dialogues with their investors to facilitate understanding with their investors, and to build a strong relationship that is based on openness and mutual respect. The rights of all shareholders should be respected. Investors in turn should engage companies in a constructive manner, and avoid unfounded allegations or speculative attacks. Industry associations are another key enabler group to foster strong market discipline. The Singapore Institute of Directors, as the national association of directors, advocates good governance practices through its conferences, training sessions and publications. The Securities Investors Association (Singapore) also serves to connect and empower minority shareholders, through efforts such as its initiative to raise the standards of queries at AGMs. 3/4  BIS central bankers' speeches  Other players in the CG ecosystem matter too. Journalists, analysts, academics, lawyers, other advocacy groups and the general public – all can contribute to raising of industry-wide CG standards through their reports and research.