Netlink NBN Trust, United Overseas Bank and ComfortDelGro lead the race
Singapore publicly-listed business entities performed significantly better in their corporate governance practices despite the disruption caused by the global pandemic.
In the latest 2021 edition of the ASEAN Corporate Governance Scorecard (ACGS), 62 out of Singapore’s top 100 business entities scored at least 75 per cent out of 130 points. Only 26 entities did so in the biennial study in 2019.
Top scorers for Singapore include Netlink NBN Trust, United Overseas Bank and ComfortDelGro.
The high scores put these 62 entities into the ASEAN Asset Class, among other assessed regional publicly-listed entities recognised for good corporate governance practices. The entities encompass companies, real estate investment trusts (REITs) and business trusts.
The biennial ACGS is part of an initiative under the ASEAN Capital Markets Forum, a high-level grouping of capital market regulators. The Monetary Authority of Singapore has appointed the National University of Singapore (NUS) Business School’s Centre for Governance and Sustainability (CGS) and Singapore Institute of Directors (SID) as Singapore’s domestic ranking body for the ASEAN Corporate Governance Initiative since 2013.
Singapore, Indonesia, Malaysia, the Philippines, Thailand and Vietnam participated in the latest assessment which began in 2021. The domestic ranking bodies each assessed a list of top 100 publicly-listed business entities by market capitalisation in their jurisdictions. The top 35 companies from each country underwent random peer review assessment by foreign ranking bodies. (See Annex 1: Methodology)
Greater representation of Singapore entities in ASEAN Asset Class
29 real estate investment trusts (REITs) and business trusts were included for the first time for Singapore, of which 72.4 per cent (21) made it to the ASEAN Asset Class. In comparison, 57.7 per cent of publicly-listed companies (41 out of 71) were in the same category.
In the ASEAN Asset Class, Singapore’s representation grew from 18.8 per cent (26 out of 138 entities) in 2019 to 26.5 per cent (62 out of 234 entities) in 2021. However, the average score of Singapore entities in the ASEAN Asset Class, at 106.2 points, was slightly lower than the average 108.1 points achieved in 2019.
On the other hand, Singapore’s business entities (38) outside of the ASEAN Asset Class scored 93.0 points on average in 2021, registering an increase of 11.7 points more than 81.3 points scored by 74 publicly-listed companies in the same category in 2019.
The average score for all 100 Singapore business entities was 101.1 points, an increase of 14.5 per cent over the average 88.3 points in 2019. The results signal stronger corporate governance in these Singapore entities.
Top 10 Singapore scorers
The top 100 Singapore business entities assessed had a combined market capitalisation of S$586 billion as of 31 March 2021. Among these business entities, Netlink NBN Trust achieved the top position in its first inclusion in the study, while United Overseas Bank retained its second position. ComfortDelGro jumped from the eighth to the third position. Singapore Press Holdings clinched the fourth position. These top four entities were also among the Top 20 ASEAN Publicly-Listed Business Entities.
The remaining top 10 scorers are CapitaLand, Keppel Corporation, Singapore Telecommunications, Far East Hospitality Trust, Singapore Post and Sembcorp Industries, in that order.
Mr John Lim, lead member of the Singapore domestic ranking body and Past Chair of SID said: “Singapore entities have improved significantly in ACGS 2021. However, maintaining and improving corporate governance practices is a continuous journey. The entities must be prepared to deal with new requirements relating to sustainability disclosures, board diversity and board renewal. It is likely that the criteria in the next assessment will be revised to align with new global guidelines in the G20/OECD Principles of Corporate Governance which is currently in its final stages of revision.”
Professor Lawrence Loh, Director of CGS, NUS Business School, said: “Our REITs and business trusts have put up a strong showing in the first year that they are included in the assessment—72.4 per cent of them scored at least 75 per cent to make it to the ASEAN Asset Class. This solid performance extends to the publicly-listed companies, and they now jointly account for more than a quarter of ASEAN entities in that class. The COVID-19 pandemic will not be the last disruption that businesses encounter. However, good corporate governance performance will assure investors and regulators that these entities can overcome future challenges.”
ACGS 2021_Annex 1
ACGS 2021_Annex 2
ACGS 2021_Annex 3
ACGS 2021_Annex 4
About the Centre for Governance and Sustainability
The Centre for Governance and Sustainability (CGS) was established by the National University of Singapore (NUS) Business School in 2010. It aims to spearhead relevant and high-impact research on governance and sustainability issues that are pertinent to Asia, including corporate governance, corporate sustainability, governance of family firms, state-linked companies, business groups, and institutions. CGS also organises events such as public lectures, industry roundtables, and academic conferences on topics related to governance.
NUS Business School is known for providing management thought leadership from an Asian perspective, enabling its students and corporate partners to leverage global knowledge and Asian insights.
The School is one of the 16 colleges, faculties and schools at NUS. A leading global university centred in Asia, NUS is Singapore’s flagship university, which offers a global approach to education, research and entrepreneurship, with a focus on Asian perspectives and expertise. Its transformative education includes a broad-based curriculum underscored by multi-disciplinary courses and cross-faculty enrichment. More than 40,000 students from 100 countries enrich our vibrant and diverse campus community.
For more information, please visit bschool.nus.edu.sg, or go to the BIZBeat portal, which showcases the School’s research.
About Singapore Institute of Directors
The Singapore Institute of Directors (SID) is Singapore’s national association for company directors. Formed in 1998, its mission is to uplift the directorship profession and champion good governance. Its membership comprises board directors, company leaders, and professionals with an interest in corporate governance. SID provides a comprehensive training curriculum that covers the spectrum of professional developmental needs of directors including the Listed Entity Director programme for newly-appointed directors and the Governance for Outstanding Organisation Directors programme for directors of nonprofit boards.
In its advocacy for good governance, SID curates thought leadership and benchmarking research and indices on corporate governance and directorship issues, and provides a one-stop information resource on governance-related matters. It connects the director community via initiatives such as mentoring and networking, and provides a range of services for boards including board appointments, board listings and board evaluations.
For more information, please visit the website and LinkedIn page.
For media enquiries, please contact:
ANG Hui Min Acting Head, Corporate Communications NUS Business School National University of Singapore Tel: +65 6601 5857 Email: huimin19@nus.edu.sg
YANG Wai Wai Head, Communications and Research Singapore Institute of Directors Tel: +65 9797 9660 Email: waiwai.yang@sid.org.sg