Comply or explain issue: try naming & shaming

WHEN it comes to certain aspects of corporate governance, the principle of self-regulation does not seem to have worked out all that well here.

As the Singapore Exchange's new chief regulatory officer Tan Boon Gin said last week, some listed companies still fail to meet a bourse rule to either comply with the local Code of Corporate Governance or explain why they do not. The SGX now plans to carry out a review of more than 550 mainboard-listed firms to check whether they "comply or explain" and engage errant firms one-on-one.

This review is much needed and will no doubt benefit the local market, particularly retail investors who may not have the ability or resources to do something similar themselves.