Company boards and senior management face new and ever more complex challenges every day with the fast-changing business landscape. Amidst the headwinds, uplifting governance and transparency standards is a key strategic business priority if companies are to retain the confidence of their investors and stakeholders.
CPA Australia believes that sound corporate governance is the foundation on which companies build their reputation. It is critical for directors and management to provide effective stewardship for their companies to excel.
To this end, since 2009, CPA Australia has sponsored the production of an annual Governance and Transparency Index (GTI) ranking in Singapore. The GTI, a pioneering initiative for the Singapore market, is aimed at assessing all companies listed on the Singapore Exchange on their corporate governance disclosure and practices, as well as the timeliness, accessibility and transparency of their financial results announcements.
In 2016, CPA Australia renewed our commitment towards a higher bar for governance with our sponsorship of an enhanced Singapore Governance and Transparency Index (SGTI). With the SGTI, we hope that Singapore-listed companies will continue their positive progress in strengthening governance locally, while aligning with global standards.
About the SGTI
The SGTI builds on the seven year track record of the GTI, by incorporating new elements with the inclusion of G20/OECD Principles of Corporate Governance. The upgrade makes the SGTI even more comprehensive and well-positioned for ongoing global developments in corporate governance.
The SGTI is a collaboration of CPA Australia, the Centre for Governance, Institutions and Organisations (CGIO) at NUS Business School, and the Singapore Institute of Directors. The index is supported by the leading business newspaper, The Business Times.
In 2016, the SGTI ranked a total of 631 Singapore-listed companies which had released their annual reports by 31 May 2016.
Overall, Singapore-listed companies have made significant improvements in corporate governance and transparency. The annual scores achieved by the listed companies since 2009 reached an all-time high this year.
The 2016 SGTI findings showed promising improvements in the areas of:
shareholder voting rights
adequacy of risk management and internal control systems
whistleblowing policy and anonymous reporting.
But despite the overall positive developments, some aspects have room to improve, including:
having a fully-independent board-level risk committee
time commitment of directors
independence of the Chair.
2016 SGTI findings
Past GTI rankings