Investor stewardship: Evolving S'pore's version
A model that works for the local context - local firms' ownership structure and the rights of investors - will ensure that corporate governance emerges the winner.
WHEN I was based in Singapore in 2014, the notion of investor stewardship often needed explanation, even in conversations with peers. It is therefore remarkable that only two years later, a set of local-stewardship principles, describing how investors can contribute to the long-term success of companies, has been successfully launched. As I had the privilege to serve as the only non-resident member of the working group that developed the Singapore Stewardship Principles (SSP), I am delighted with the progress.
Over time, the SSP can make an important contribution to the development of corporate governance and stewardship in Singapore by raising awareness about the role of investors in the governance of companies in which they invest. Since they are entirely voluntary and intended as guidance only, they will not put unnecessary burdens on those investors for whom they are not relevant or may be too onerous to apply.
However, in order for the SSP to have a real impact, Singapore should create its own stewardship culture and practice, suited to the ownership structures of local companies and culture, as well as the theoretical and practical rights of investors.
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