Some welcome muscle for comply-or-explain governance code

AN overlooked nugget in Singapore's review of its Code of Corporate Governance is a proposal to strengthen the comply-or-explain regime.

But giving the regulatory framework a stronger bite may well be the most impactful among the many planned changes to the Code. After all, the best designed rules will not matter if nobody follows them.

The proposed change to the comply-or-explain regime is contained in a single paragraph of the Singapore Exchange's listing rules. While the rule currently requires that listed issuers only "disclose any deviation from any guideline of the Code toget…