CG rankings harsh but a needed wake-up call

THIS month's release of the closely followed CG Watch, a biennial report on corporate governance (CG) in the Asia-Pacific, contained a harsh assessment of Singapore's regulatory standards. Far from being unjustified, however, one hopes the assessment would instead serve as a needed wake-up call for the regime.

This edition of CG Watch is its ninth and, as in previous years, is jointly produced by the Asian Corporate Governance Association (ACGA) and CLSA Limited. It comprises two distinct surveys: a market-ranking survey carried out independently by ACGA on macro CG quality in 12 markets in the region, and a separate company survey conducted by CLSA analysts on corporate governance practices among some 1,100 firms listed in the Asia-Pacific.

Australia, included for the first time, topped ACGA's rankings. Singapore dropped to third place, behind Hong Kong (which it pipped in 2016) and just ahead of Malaysia. Despite staying in the top three, the city-state did so - the report stressed - only "by the barest of margins".