Regulatory update, August 2018

Background: In January 2018, SGX launched a public consult seeking feedback on listing rule changes and revisions of the Code of Corporate Governance issued in May 2012 (“Current Code”). The Code of Corporate Governance (“Code”) was first issued by the Corporate Governance Committee (“CGC”) on 21 March 2001. The Code was subsequently revised on 14 July 2005 , and again on 2 May 2012. Listed companies are required under the SGX-ST Listing Rules to disclose their corporate governance practices and give explanations for deviations from the Code in their annual reports. On 28 February 2017, the Corporate Governance Council (“Council”) was established to conduct a comprehensive review of the Code. On 6 Aug 2018, the Council submitted its recommendations to MAS. MAS has accepted all the recommendations and issued a revised Code (“Revised Code”) and accompanying Practice Guidance. Accordingly SGX has made amendments to its Listing Rules following the MAS acceptance of the Revised Code, this is further discussed in Paragraph 2 of this Regulatory Update.

The Revised Code is intended to be more concise and less prescriptive, so as to encourage thoughtful application. Key changes to the Current Code include encouraging board renewal, strengthening director independence and enhance board diversity to reinforce board competencies.