Author: Mak Yuen Teen

A strong ethical culture must underpin a pay-for-performance system which avoids the pitfalls of excessive remuneration.

SGX must be prepared to take action or to block transactions that violate these general principles. In particular, they should be prepared to block transactions that clearly lack commercial substance.

To be honest, I feel that SGX Regco is so busy with these market-friendly initiatives that I am worried that it is neglecting its regulatory role, as we have yet to hear of any new initiatives to improve enforcement.

To an investor, whether directors or their companies have been subjected to regulatory action is important information. I certainly look at this when companies announce the appointment of directors.

It may be time for me to write another paper on this subject again and to review our enforcement of rules. However, I am not sure if my conclusion will still be that “enforcement actions have generally been prompt”.