Data on Gender Diversity on Boards of Singapore Public Listed Companies
Ministry of Social and Family DevelopmentSpeakers
Summary
This question concerns Miss Cheryl Chan Wei Ling's inquiry regarding updates on gender diversity for Singapore publicly listed companies and the use of formal search processes for female board directors. Minister Masagos Zulkifli B M M reported that female representation on Top 100 listed company boards rose to 18% in June 2021, more than doubling the 7.5% recorded in 2014. He noted that while 98% of companies still use personal contacts to identify directors, the Council for Board Diversity is actively expanding the pipeline of board-ready women. Additionally, a new Singapore Exchange listing rule effective 1 January 2022 requires companies to disclose their board diversity policies to encourage greater representation. Minister Masagos Zulkifli B M M emphasized that a multi-stakeholder approach remains vital to reducing barriers for women aspiring to leadership and board positions.
Transcript
64 Miss Cheryl Chan Wei Ling asked the Minister for Social and Family Development (a) whether the Ministry can provide an update on gender diversity on the boards of Singapore publicly listed companies; and (b) whether the Ministry compiles data of companies using formal search and nomination process for appointing female board directors.
Mr Masagos Zulkifli B M M: The Government is committed to enable every Singaporean, both men and women, to pursue their ambitions and reach their fullest potential. In conjunction with the Year of Celebrating SG Women, the Government had partnered with community partners to organise the Conversations on Singapore Women's Development. Feedback from the Conversations included supporting women’s career aspirations and seeing greater female representation in leadership roles, including on boards of organisations. Having more women on boards would bring different perspectives which would be useful to these organisations as they navigate today’s complex world.
MSF set up the Diversity Action Committee (DAC) in 2014, which was succeeded by the Council for Board Diversity (CBD) in 2019 comprising eminent corporate and public sector leaders as well as professionals. The CBD has been promoting a sustained increase of women on boards of (a) Top 100 listed companies listed on the Singapore Exchange; (b) statutory boards; and (c) Top 100 Institutions of a Public Character in Singapore. As of June 2021, the percentage of women on boards of the Top 100 listed companies is at 18%, more than doubled from 7.5% in 2014 prior to the start of DAC.
Based on a 2019 survey conducted by the Singapore Institute of Directors, about 17% of companies used executive search firms to identify potential board directors, while 98% used personal contacts of board members and management1. The CBD continues to expand a pipeline of board-ready women and reaches out to nominating committee chairs and members to recommend suitable female candidates with requisite skills or experience, based on the needs of the respective companies.
From 1 January 2022, SGX has implemented a new listing rule that requires companies to disclose their policies on board diversity, including gender diversity. This is a significant development that would further encourage greater female representation on boards.
Increasing the representation of women on boards requires a multi-stakeholder approach. MSF will continue to work with partners such as the CBD to sustain efforts to reduce barriers and encourage even more women to be appointed to boards so that women who aspire to be leaders in their fields can reach their fullest potential and our society can benefit from their perspectives and even greater contributions as board members.