Should the Code of Corporate Governance be refreshed to complement the EQDP?

THE Singapore Code of Corporate Governance was last comprehensively revised in August 2018. Apart from targeted refinements – including the January 2023 move to hard-code the nine-year rule for independent directors – the framework has remained largely intact since.

There is no doubt that the Code has served the Republic well. However, markets evolve and with the launch of the Equity Market Development Programme (EQDP), Singapore has entered a new phase of capital-market activism aimed squarely at improving liquidity, valuations and investor participation, particularly beyond the largest blue-chip names.

These smaller firms stand to benefit the most from renewed investor interest, but confidence in this segment is often the thinnest and its disclosures lag those of blue chips. In short, governance standards among second and third-liners are below those of the larger companies.