Singapore Corporate Governance

How is one to manage  A.I.'s disruptive threat to our industry?

If we see that A.I. is but the latest in the stream of technology to do so, we appreciate how history provides instructive lessons in the value of Governance in handling change.

In this podcast, we explore what happens when the Singapore's postal giant , SingPost, confronts the future where most communication is done online and the use of post goes into terminal decline.

How does poor Governance handicap a firm in its transition? Is a recovery possible?

In this podcast, we have the distinct pleasure of chatting with Prof Mak of NUS, a keen observer of SingPost and its travails.

Useful Time Stamps

00:01 - 16:30
SingPost's Disruption, M&A Scandals and Governance

16:30 - 53:17
Interview with Prof Mak on Insights into SingPost and Singapore's Governance Landscape


Show Notes

Download the Singapore Code of Corporate Governance below

https://www.mas.gov.sg/-/media/mas/news-and-publications/code-of-corporate-governance-6-aug-2018-revised-11-jan-2023.pdf

Hyflux has been an icon in Singapore, with its collapse being a shock to many. It had also caused the loss of millions of dollars within the Singaporean investing community.

What governance lessons can we derive from this? In this podcast, Prof Mak (NUS), an esteemed Corporate Governance expert, generously shares deep insights on the firm and the Singaporean governance landscape.

This podcast will be especially helpful to students of governance (shout out to the CA Singapore candidates) and those interested in how governance plays out in the Singaporean/Asian context.

Useful Time Stamps

00:01 - 10:30 
Hyflux's Reasons for Collapse & Governance Issues

10:30 - 52:01
Interview with Prof Mak on Insights into Hyflux and Singapore's Governance Landscape


Show Notes
1) Download the Singapore Code of Corporate Governance below

https://www.mas.gov.sg/-/media/mas/news-and-publications/code-of-corporate-governance-6-aug-2018-revised-11-jan-2023.pdf

2) Join the preparatory course for the SCA exams

https://courses.learningluminaries.com/courses/sca-business-valuation-governance 

Wow, if you listened this far, that’s definitely an accomplishment! As podcasts go, of course there would be some episodes that we got distracted and it just became “white noise” – I’ve had that often! So feel free to re-listen to this! 

It's been a pleasure delving into the intricacies of Singapore’s Corporate Governance Code with you. My goal was a simple one it's to help make learning the Code a little bit easier amidst our very busy lives.

 I also wonder if you noted the improvement in audio quality throughout the podcast journey well making a podcast was a lot more difficult than I thought a lot more technical and audio engineering these were things way out of my domain but it was a fun learning journey for me.

 What’s next? Well, remember we spoke of illuminating the value of the provisions via stories of firms? That’s the next goal, to bring you stories that really impress on us how vital corporate governance is to a firm’s success and even its survival. That is one big endeavor, stay tuned!


Show Notes
1) Download the Singapore Code of Corporate Governance below

https://www.mas.gov.sg/-/media/mas/news-and-publications/code-of-corporate-governance-6-aug-2018-revised-11-jan-2023.pdf

2) Join the preparatory course for the SCA exams

https://courses.learningluminaries.com/courses/sca-business-valuation-governance 

Provision 13.3 says,

“The company maintains a current corporate website to communicate and engage with stakeholders

Is this possibly the simplest provision to comply with? But quite a few comply by having a website, yet do not comply with the spirit of the provision.

Show Notes
1) Download the Singapore Code of Corporate Governance below

https://www.mas.gov.sg/-/media/mas/news-and-publications/code-of-corporate-governance-6-aug-2018-revised-11-jan-2023.pdf

2) Join the preparatory course for the SCA exams

https://courses.learningluminaries.com/courses/sca-business-valuation-governance 

Provision 13.2 says,

“The company discloses in its annual report its strategy and key areas of focus in relation to the management of stakeholder relationships during the reporting period.”

This now appears within the Annual Reports and the Sustainability Reports.  How so?

Show Notes
1) Download the Singapore Code of Corporate Governance below

https://www.mas.gov.sg/-/media/mas/news-and-publications/code-of-corporate-governance-6-aug-2018-revised-11-jan-2023.pdf

2) Join the preparatory course for the SCA exams

https://courses.learningluminaries.com/courses/sca-business-valuation-governance

3) Singtel Sustainability Report
https://www.singtel.com/content/dam/singtel/about-us/sustainability/reports/Singtel-Group-Sustainability-Report-2022.pdf

Stakeholders can be very powerful and in some situations, can lead to companies being boycotted or even shut down by the government. 

 Provision 13.1 says,

“The company has arrangements in place to identify and engage with its material stakeholder groups and to manage its relationships with such groups.”

But who are our “material stakeholders” and, bluntly put, who are “immaterial”? 

Show Notes
1) Download the Singapore Code of Corporate Governance below

https://www.mas.gov.sg/-/media/mas/news-and-publications/code-of-corporate-governance-6-aug-2018-revised-11-jan-2023.pdf

2) Join the preparatory course for the SCA exams

https://courses.learningluminaries.com/courses/sca-business-valuation-governance 

Principle 13 touches on a strongly trending issue - stakeholders, it says

“The Board adopts an inclusive approach by considering and balancing the needs and interests of material stakeholders, as part of its overall responsibility to ensure that the best interests of the company are served.”

With all the focus on ESG, this is now becoming a vital section of the Code.

Show Notes
1) Download the Singapore Code of Corporate Governance below

https://www.mas.gov.sg/-/media/mas/news-and-publications/code-of-corporate-governance-6-aug-2018-revised-11-jan-2023.pdf

2) Join the preparatory course for the SCA exams

https://courses.learningluminaries.com/courses/sca-business-valuation-governance 

Provision 12.3 says,

"The company’s investor relations policy sets out the mechanism through which shareholders may contact the company with questions and through which the company may respond to such questions."

This is clear-cut, if companies allow for customers to easily contact them, how much more so should they allow shareholders to do so!

Show Notes
1) Download the Singapore Code of Corporate Governance below

https://www.mas.gov.sg/-/media/mas/news-and-publications/code-of-corporate-governance-6-aug-2018-revised-11-jan-2023.pdf

2) Join the preparatory course for the SCA exams

https://courses.learningluminaries.com/courses/sca-business-valuation-governance 

Provision 12.2 elaborates,

“The company has in place an investor relations policy which allows for an ongoing exchange of views so as to actively engage and promote regular, effective and fair communication with shareholders.”

We breakdown the words regular, effective and fair - what do they mean?

Show Notes
1) Download the Singapore Code of Corporate Governance below

https://www.mas.gov.sg/-/media/mas/news-and-publications/code-of-corporate-governance-6-aug-2018-revised-11-jan-2023.pdf

2) Join the preparatory course for the SCA exams

https://courses.learningluminaries.com/courses/sca-business-valuation-governance  

Provision 12.1 says,

“The company provides avenues for communication between the Board and all shareholders, and discloses in its annual report the steps taken to solicit and understand the views of shareholders”

What avenues are there for he Board to further engage with shareholders? How does UOB engage, even with the smaller retail investors? 

Show Notes
1) Download the Singapore Code of Corporate Governance below

https://www.mas.gov.sg/-/media/mas/news-and-publications/code-of-corporate-governance-6-aug-2018-revised-11-jan-2023.pdf

2) Join the preparatory course for the SCA exams

https://courses.learningluminaries.com/courses/sca-business-valuation-governance