There has been an increasedawareness and a higher level of rigorous discussion for better corporategovernance in Singapore in recent years. The government has invested heavily inits reputation and the reliability for foreign investors. The educationalsystem is aiming to educate young people with a strong sense of business ethicsand an appreciation that not all deals should be about maximizing profits.
Since the ownership has remained among families and the state, it has created alimitation for foreign investors to receive valuable information and also tochange the status-quo. Foreign shareholders had in the past years called forchanges in corporate governance, such as reduction in board sizes and more transparency(Economist Intelligence Unit, 2006)In contrast to the US or UK, it israre for corporate overtakes in Singapore. The state’s practice of unofficialM transactions has also prevented the frequency of acquisitions. Thepublic listed companies in Singapore operates as a form of a representativegovernment. Majority of these listed companies are state-owned. A good corporategovernance has a profound effect on how well a business performs (Carney, 2015).According to the President and CEOof Singapore Securities Investors Association David Gerald, the better thecorporate governance is organized the better the company actually operates. Headdresses that the evolution of the economic and political diversity in theregion ensures that a “one size fits all” approach to corporate governancepolicies will not work in many Asian markets.
Singapore must adjust itspractices to fit the peculiarities of their own experience and adopt thosestandards in the context of the nation’s own institutional constraints (Gerald, 2012).