Toughen up the rules: Singapore investors

This amidst the delisting or suspension of more than one in ten Chinese firms listed in Singapore since 2008, yet executives are safe back home.

A Bloomberg report said, “Regulators must seek a balance between the need for investor protection and a desire to attract companies to Singapore’s exchange. Lawyers said executives of Chinese firms that trade in Singapore, so-called S-chips, are beyond the reach of current law as long as they remain in China.”

Singapore’s former attorney general, Walter Woon, who heads the steering committee overseeing proposed changes to the Companies Act, was quoted as saying, “Even if there’s a flagrant, blatant breach of our laws, we can’t touch the guy because certain sections of our Companies Act don’t apply to foreign entities.”

Woon commented we should at least consider making some of the basic rules on corporate governance apply to foreign companies that want to list here, even if this scares away some people.

According to the report, the Singapore, New York, London and Tokyo exchanges were given permission to open offices in China in 2007 to lure companies from the world’s most populous nation seeking to tap international capital markets.

View the full report here.

Join Singapore Business Review community
A NOTE FROM SINGAPORE BUSINESS REVIEW

If you've been wondering whether SBR could work for your company — yes, probably.

A lot of the companies we partner with started as readers. They'd been following our coverage for a while, saw their own customers and competitors in it, and eventually asked the obvious question: could we do something with you? The answer is usually yes. The shape of it depends on what you're trying to do.


The options are broader than most people assume — thought leadership articles, sponsored content, industry summits across Southeast Asia, regional awards programmes, podcasts, and media placements in print and digital. Some partners use one channel; most use a mix. We figure out the right combination by starting with your brief, not with our rate card.


So if the question has been on your mind, here's the easy way to ask it.

We'll tell you honestly whether we can help, and how. It's a better use of everyone's time.