MAS reviews CG Code to emphasise boards’ role in market valuations

The review will consider improvements in board effectiveness and risk management.

The Monetary Authority of Singapore (MAS) is reviewing the Code of Corporate Governance (CG Code) to raise market-wide expectations for boards’ roles in value creation and investor engagement.

The review will look at how the CG Code can emphasise boards’ responsibilities for strategic oversight, capital efficiency, and ensuring market valuations reflect earnings potential, said Chia Der Jiun, MAS Managing Director.

It will also consider enhancements on corporate culture, board effectiveness, and risk management, Chia added.

The review will be done together with the Singapore Exchange (SGX) and the Corporate Governance Advisory Committee.

SGX may introduce mandatory disclosures covering dividend policy, investor relations, and the link between remuneration and value creation, alongside guidance for meaningful forward-looking reporting.

Meanwhile, MAS is keeping track of progress with the Value Unlock programme, under which two grants were launched with SGX.

“We will be closely tracking the progress and outcomes, and will also take feedback as we implement,” Chia said.

The Equip Grant provides foundational training in strategy, financial management, and investor relations, whilst the Elevate Grant offers consultancy support and requires the publication of shareholder value enhancement plans and progress reports.

Companies will have opportunities to showcase improvements at the SGX Investor Fair, expected by year-end or early next year, he added.