Joint Press Release by MAS and SGX

Singapore, 29 May 2007...Oversight of corporate governance of listed companies will be transferred from the Council of Corporate Disclosure and Governance (CCDG)^[1] to the Monetary Authority of Singapore (MAS) and the Singapore Exchange Ltd (SGX) with effect from 1 September 2007. The move will clarify and streamline responsibilities for corporate governance matters for listed companies. The approach is consistent with that taken in other sectors, where the sectoral regulator takes responsibility for oversight of governance.

2   The Code of Corporate Governance will continue to be implemented through the SGX Listing Rules via the “comply or explain” approach^[2], as is currently the practice. The Code, which covers areas such as board matters, remuneration, accountability and audit, and communication with shareholders, will continue to complement SGX’s Listing Rules which govern specific important governance matters such as related party transactions, periodic reporting and disclosure of material information. As the front line regulator of listed companies with close interactions with many market participants, SGX will continue to work with other stakeholders to raise governance standards for listed companies.

3   MAS has overall responsibility for capital market regulation, including oversight of SGX. With the active involvement of SGX and market participants, MAS will conduct periodic reviews of the Code to ensure that it remains relevant and useful, and is in line with global best practices. As the Code was last reviewed in 2005, MAS does not see any pressing need for a further review in the near future.

4   Shane Tregillis, Deputy Managing Director, Market Conduct, MAS, said, “We consider that the Code generally sets the appropriate benchmarks for good corporate governance for companies in Singapore. While we will keep the Code under review to ensure it stays up to date with market developments, the immediate focus of MAS and SGX will be on working with market participants to identify practical initiatives to help more listed companies and directors put in place corporate governance arrangements in line with the best practices set out in the Code.” Yeo Lian Sim, Executive Vice President and Head, Risk Management and Regulation, SGX, added: “Good governance is important for the sustained performance of listed companies. The standing of SGX listed companies will be enhanced with transparency and accountability in an increasingly global environment.”

***

¹ The CCDG was formed in August 2002 to prescribe accounting standards, strengthen the framework on disclosure practices and reporting standards, and to review and make recommendations to MOF on revisions to the Code of Corporate Governance. The council will be dissolved on 1 September 2007.

² All companies listed on the Singapore Exchange ("SGX") are required as part of the SGX Listing Rules, to give a description in their annual reports of their corporate governance practices with specific references to each of the guidelines set out in the Code of Corporate Governance; where they deviate from the Code, they are required to disclose these non-compliances with appropriate explanations.