Measures to Ensure Equivalent Corporate Governance Standards Abroad for SGX-listed Entities
Ministry of FinanceSpeakers
Summary
This question concerns the inquiry by Mr Abdul Muhaimin Abdul Malik regarding measures ensuring SGX-listed entities uphold governance standards and integrity in their overseas operations. Deputy Prime Minister and Minister for Trade and Industry Gan Kim Yong stated that boards must implement effective internal controls and risk management per SGX Listing Rules. Companies are required to comply with foreign laws and provide timely disclosures of material investigations under the Securities and Futures Act and the Code of Corporate Governance. SGX RegCo serves as the frontline regulator, issuing public queries when disclosures are inadequate, while intentional non-compliance can result in significant fines or imprisonment. The Monetary Authority of Singapore works with SGX RegCo to monitor governance obligations and takes firm action against any infringements to maintain capital market transparency.
Transcript
2 Mr Abdul Muhaimin Abdul Malik asked the Prime Minister and Minister for Finance what measures are in place to ensure that SGX-listed entities uphold equivalent standards of governance and integrity overseas as they do in Singapore.
Mr Gan Kim Yong (for the Prime Minister): My response will cover the question raised by Mr Abdul Muhaimin Abdul Malik in today’s Order Paper, as well as a related question filed by him for the Sitting on or after 6 November 2025.
The boards and senior management of listed entities must put in place effective systems of internal controls and risk management for their operations, whether local or overseas. This includes putting in place a code of conduct and ethics, as well as adequate safeguards to address and mitigate compliance risks. These requirements, as set out in the SGX Listing Rules and Code of Corporate Governance, enable strong corporate governance processes to guide their day-to-day operations and commercial decisions.
In addition to local requirements, it is incumbent on listed entities to comply with the applicable laws and regulations in the jurisdictions where they operate, and to cooperate with the relevant authorities in their investigations.
Where a listed entity encounters issues with its foreign operations, the board should assess the adequacy and effectiveness of the systems of internal controls and risk management and take steps to address any significant weaknesses identified. It should also ensure that all material disclosures, including investigations by relevant authorities and the outcomes of these investigations, are made in a timely manner, as required under the Securities and Futures Act (SFA) and the SGX Listing Rules.
When disclosures are inadequate or unclear, SGX RegCo, as the frontline regulator, will issue public queries or engage directly with entities to seek further information. Under the SFA, intentional or reckless failures to comply with the Listing Rules' disclosure obligations are further subject to a fine of up to $250,000 and/or imprisonment of up to seven years.
The Monetary Authority of Singapore works closely with SGX RegCo to ensure that listed entities fulfill their governance and disclosure obligations. Where there are infringements, we will not hesitate to take firm action to preserve high standards of governance and transparency in our capital markets.