SGX States Two Pillars Of Successful Corporate Governance

The Singapore Exchange (SGX), in its Regulators Column, has provided updates on its efforts to strengthen vigilance and corporate governance practice among listed companies. SGX wishes to state that just as attracting foreign companies is a key pillar of our

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The Singapore Exchange (SGX), in its Regulators Column, has provided updates on its efforts to strengthen vigilance and corporate governance practice among listed companies.

SGX wishes to state that just as attracting foreign companies is a key pillar of our long-term strategy, so is maintaining stringent listings requirements and upholding corporate governance standards of our listed companies. SGX believes both elements are equally crucial if the Exchange and Singapore are to prosper as a trusted financial center for capital raising.

The Exchange recognises that the current business environment poses challenges to both the Exchange and our listed companies. In particular, SGX is acutely aware of the risks presented by companies operating in foreign countries, including Singapore-listed Chinese companies (S-Chips).

The market needs to distinguish companies that are adversely affected by the current crisis as against those who resort to fraud. This differentiation applies to companies listed on SGX, regardless of their country of origin. Currently, about 142 listed companies on SGX have issued profit warnings and guidance since 2008.

Some of these risks can be, and are, addressed at the IPO due diligence stage where professionals play a major role in preparing companies for listing. Over the years, ongoing improvements have been made to strengthen accountability and transparency during the IPO process, as well as post-IPO.

L.D.

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