An effective corporate governance framework is key to the success of any organisation. Besides ensuring compliance with local rules and policies, good corporate governance helps to improve business processes and mitigate risks before they become an issue. These help management build better business strategies to gain a competitive edge. Brand image is also improved, an often overlooked but vital factor in attracting and retaining talent and investors.
Corporate governance in Asia has taken a centrestage in the recent years. Amongst others, in December 2021, the Singapore Exchange announced mandates on climate, board disclosure and diversity. In November 2022, the Hong Kong Stock Exchange published its “2022 Analysis of ESG Practice Disclosure”, which reviewed significant improvement in the area of board governance of ESG issues. And in January 2022, Bursa Malaysia announced the enhanced requirements in the Main and ACE Market Listing Requirements to further strengthen board independence, quality and diversity.
As the emphasis on ESG grows, we cannot overlook the importance of corporate governance in Asia, especially when many Asian organisations have concentrated ownership structure such as family participation.
Download our Best Practices for a Robust Framework to determine if your organisation is adhering to industry best practices in order to reap these long-term benefits.
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