{
  "id": 9649654,
  "title": "Beyond paper tigers: Evolving SGX’s regulations to match Asia’s needs",
  "url": "https://urgent.news/2026/09/24/beyond-paper-tigers-evolving-sgxs-regulations-to-match-asias-needs",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-24T23:00:00.000Z",
  "source": {
    "name": "The Business Times - Companies & Markets",
    "slug": "the-business-times-companies-markets",
    "url": "https://www.businesstimes.com.sg/singapore/bt50/beyond-paper-tigers-evolving-sgxs-regulations-match-asias-needs"
  },
  "original_language": "en",
  "account": "In 1976, alongside the launch of The Business Times, another significant event occurred on the other side of the world: the US Securities and Exchange Commission (SEC) instructed the New York Stock Exchange (NYSE) to incorporate an audit committee composed of independent directors (IDs). This led to the establishment of the role of ID as we understand it today. This development was spurred by the bankruptcy of Penn Central in 1970 and revelations in 1973 about illegal campaign contributions to Richard Nixon's re-election campaign. Over time, the importance of independent boards has grown, now recognized as a best practice for corporate governance globally. In Singapore, the SGX Rulebook mandates that at least a third of a listed issuer's board must consist of IDs, rising to half if the chairman is not independent or part of management. Despite these rules, Singapore faces challenges with paper tigers: IDs that fail to challenge controlling shareholders effectively. As Singapore Exchange Regulation (SGX RegCo) develops its regulatory framework, particularly in transparency and governance, it must reconsider certain assumptions. The exchange, founded in 1973, is young, with the world's oldest exchange being Amsterdam, established in 1602. Singapore has adapted regulatory systems from older exchanges, which have generally worked well, but some need improvement. Issues such as the reliance on board independence, close alignment with the UK's corporate governance code, voting rules, disclosure requirements, free float levels, and minority redress need addressing. These challenges are common across Asian exchanges, and solutions are still being developed. The high proportion of individual-controlled and family-controlled companies, along with low institutional investor presence, necessitates better addressing of conflicts of interest and market discipline. The SGX RegCo is pioneering rules and establishing new best practices, such as enhanced disclosures on remuneration, investor engagement, and dividend policy. Additionally, a refresh to the Code of Corporate Governance is being considered, which could be a first worldwide. As Singapore evolves its regulatory framework to better suit its Asian context, discomfort is expected, but reassurance is that investors will see the first steps in this direction.",
  "summary": "New rules will have to be pioneered and original best practices must be established",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "The Business Times - Singapore",
        "title": "Beyond paper tigers: Evolving SGX’s regulations to match Asia’s needs",
        "url": "https://urgent.news/2026/09/24/beyond-paper-tigers-evolving-sgxs-regulations-to-match-asias-needs-9649767",
        "published": "2026-09-24T23:00:00.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}