General Announcement::CGAC and SGX RegCo propose changes to strengthen corporate governance code and listing rules

Issuer & Securities

Issuer/ Manager
SINGAPORE EXCHANGE LIMITED
Securities
SINGAPORE EXCHANGE LIMITED - SG1J26887955 - S68
Stapled Security
No

Announcement Details

Announcement Title
General Announcement
Date &Time of Broadcast
27-Oct-2026 17:30:10
Status
New
Announcement Sub Title
CGAC and SGX RegCo propose changes to strengthen corporate governance code and listing rules
Announcement Reference
SG261027OTHREHOH
Submitted By (Co./ Ind. Name)
Joan Ng
Designation
VP, Regulatory Communications
Description (Please provide a detailed description of the event in the box below)
The Corporate Governance Advisory Committee (CGAC) and the Singapore Exchange Regulation (SGX RegCo) are proposing changes to, respectively, the Code of Corporate Governance (Code) and SGX Listing Rules to strengthen corporate governance, support long-term value creation, and sustain investor confidence. The proposals complement initiatives from the Equities Market Review Group to strengthen Singapore's equities market.(1)

The proposals take into account international developments and incorporate feedback from investors and listed companies, including small and medium-sized enterprises. The proposed changes focus on three areas:

a) Facilitating effective implementation of the Code: Updating the Code and Practice Guidance with intended outcomes and illustrative examples.
b) Enhancing board independence and quality: Requiring key board committees to be chaired by an independent director and comprise a majority of independent directors; enhancing transparency in director appointments and continuous professional development; and capping the number of listed-entity directorships that an individual may hold at five.
c) Sharpening focus on value creation: Refining Code provisions to reinforce boards' responsibility for overseeing strategy, long-term value creation and investor engagement; and requiring companies to disclose their capital management policies.

Bob Tan, Chairman of the CGAC, said: "Maintaining trust in our capital markets relies on continuous improvements to our corporate governance. The CGAC's proposals aim to elevate standards and build greater trust between listed issuers and investors. By strengthening these foundations, we enable companies to pursue sustainable value creation."

Tan Boon Gin, CEO of SGX RegCo, said: "Continued momentum in our market's Value Unlock movement requires commitment from corporate boards. The proposed amendments to our Rules would add structure to how boards think about leadership and accountability, thus fostering a culture of strong board governance."

Ho Hern Shin, Deputy Managing Director (Financial Supervision) of the Monetary Authority of Singapore (MAS), said: "Strong corporate governance is fundamental to strengthening Singapore's equities market. We thank the CGAC for this set of proposals to strengthen corporate governance, which will now be published for public consultation. MAS, SGX and the CGAC welcome feedback to help shape the proposals for effective implementation."

About the consultation process

The consultation paper is available on the CGAC and SGX websites. Responses should be sent by 27 January 2027 to:

Email: sgxsecretariat@sgx.com
Post: Singapore Exchange Regulation, 2 Shenton Way, #02-02 SGX Centre 1, Singapore 068804
(Attention: The Secretariat, CGAC)

Following the consultation, the CGAC will consider the feedback received and make its final recommendations to MAS and SGX on the Code and Listing Rules, respectively(2), and finalise amendments to the Practice Guidance. Thereafter, MAS and SGX will consider the CGAC's recommendations and determine the final amendments to the Code and Listing Rules, respectively, including the implementation timelines and any transitional arrangements.

(1) The Monetary Authority of Singapore had announced the CGAC s review of the Code on 29 May 2025. Please refer to the release here: https://www.mas.gov.sg/news/media-releases/2025/mas-announces-corporate-governance-advisory-committee-to-review-code-of-corporate-governance
(2) The Code provisions apply to listed companies on a comply-or-explain basis while the Listing Rules are mandatory.

Attachments

20261027 CGAC and SGX RegCo propose changes to strengthen corporate governance code and listing rules.pdf
Total size =268K