SingPost's unlocking of value hinges on leadership

SINGAPORE Post's corporate governance problems have created an odd-sized package in the stock, with a fumbling leadership perched atop a fundamentally sound business. How that mismatch will be resolved hinges on the ability of the postal carrier's current board to reassure stakeholders of stability and competence at the top.

SingPost announced late Friday that independent director Keith Tay had stepped down from its nominations committee with immediate effect and would not stand for re-election at the company's next annual general meeting (AGM) in July. Independent director Zulkifli bin Baharudin has replaced Mr Tay to lead the nominations committee.

Mr Tay's abrupt move came shortly after a number of other surprises at SingPost's board. On April 1, SingPost said long-time director Lim Ho Kee would relinquish his chairmanship of the board on May 10 and not seek re-election at the AGM. SingPost immediately tabbed independent director Low Teck Seng to replace Mr Lim as chairman, but barely a week later, Mr Low made a U-turn and turned down the chairmanship, citing his external responsibilities.