SID DIRECTORS CONFERENCE
TUESDAY, 1 OCTOBER 2024
SUNTEC CONVENTION CENTRE

WELCOME ADDRESS BY YEOH OON JIN, CHAIR, SINGAPORE INSTITUTE OF DIRECTORS

Mr Teo Chee Hean, Senior Minister and Coordinating Minister for National Security,

Distinguished Guests,

Ladies and Gentlemen, good morning.

Thank you all for joining us here today.

It is a privilege and pleasure to see so many familiar faces from the corporate governance ecosystem.

We are honoured to welcome you to this year’s Directors Conference organised by the Singapore Institute of Directors (SID).

It is through events such as this that we exchange ideas, share experiences and build a deeper understanding of the issues that matter to us all.

A changing world

Our theme this year is “Directorship in Transition”.

In many ways, this has been a challenging year.

Growing expectations of directors are coming from shareholders, customers, regulators, competitors, suppliers, employees, partners, the community, you name it.

The role of the board is evolving.

Indeed, 2024 has been a year of change and transition.

Despite having weathered a global pandemic and coming to grips with massive global supply chain disruption, we are faced with intense geopolitical tensions, regional conflict and internal divisions.

Uncertain economic conditions are further complicated by emerging technologies like generative artificial intelligence (AI), climate change and the quest for accountability in sustainability reporting.

All this, as we struggle to align the future of work with shifting expectations from a nascent “Gen Z” workforce and a super-aged population.

Hence, the tagline for today’s agenda: “Redefining Roles, Risks and Results”.

As boards and directors adapt to a changing world, we take a step back and consider the evolving role of leaders in transition.

  • What are the new roles and responsibilities of directors?
  • How can directors prepare themselves for changing risks and opportunities?
  • Why is it critical to build resilient organisations, to innovate and adapt?
  • And what does success look like?

Corporate governance lapses

Over the past months, a number of corporate governance lapses have come to light, highlighting the need for stronger oversight and accountability.

The recent money laundering scandal in Singapore highlighted vulnerabilities in financial oversight and regulatory frameworks. Individuals across multiple jurisdictions were implicated and raised serious concerns about the effectiveness of anti-money laundering measures in the financial sector.

Elsewhere, ongoing investigations into the Wirecard scandal also highlighted deep-rooted governance issues, including the failure of auditors and regulatory bodies to detect fraudulent financial reporting.

And in other headlines, investigations into the corporate governance lapses in aircraft manufacturer Boeing are uncovering a string of allegations covering widespread fraud, conspiracy and mishaps stretching over years.

These cases underscore the importance of strong corporate governance frameworks and the critical role of boards in ensuring ethical and sustainable business practices.

To quote Prime Minister Lawrence Wong, who graced our 25th Anniversary Commemorative Event last July: “Good governance is the bedrock upon which people and companies can thrive. Without good governance, organisations fail, investments get wiped out and livelihoods are lost.”

Every time instances of corporate abuses and scandals come to light, new regulations are created to punish the behaviour and to prevent their recurrence.

That said, the burden of increasing regulations to rein in corporations is not a long-term sustainable option.

SID’s mission is to empower boards and directors to be champions of good governance through our work. Our building blocks, the A, B and C, are encapsulated in today’s programme.

Advancing thought leadership and advocacy

With changes happening at every level – geopolitical, climate, regulatory, socio-demographic, technology – directors are under increasing pressure to keep abreast of latest developments to sharpen their thinking and decision-making.

To navigate a world in transition, directors have to adapt, innovate and transition. We help them understand the evolving landscape with our thought leadership resources (through the quarterly SID Directors Bulletin and monthly Boardroom Matters column in The Business Times).

We also work with partners to investigate trends and provide benchmarking data to directors, such as through the Singapore Governance and Transparency Index, the Singapore Corporate Awards, the Stakeholder Engagement survey, and the upcoming Board Diversity Index.

The second edition of the Board Diversity Index is a collaboration with WTW and James Cook University, and scheduled to launch next month.

We would like to take this opportunity to share that we are working on a Cyber Resilience Guide for Boards in Singapore, in partnership with NCS, Istari and CSA Singapore. The targeted launch is in the first quarter of next year.

SID is also working with KPMG in Singapore to gather directors’ views and perspectives in the Budget 2025 proposal to the Singapore government.

Building competencies and capabilities

To help directors step up and to equip them with the prerequisite knowledge and skills, SID has numerous professional development programmes, and we have added to these initiatives over the past months.

  • The SID Director Accreditation programme was launched in May. Accreditation establishes standards for director competencies and encourages directors to stay relevant through continuous professional development. With more than 1,000 accredited directors and growing, we ask that board chairs and chairs of nominating committees consider accredited directors when making board succession plans.
  • I’m happy to note that out of 618 directors appointed to SGX listed company boards between September 2023 and August 2024, 105 are SID accredited directors – that’s one in six.
  • Our Board Readiness programme seeks to provide aspiring directors with the foundational knowledge and skills of a board director.
  • For first-time appointees of SGX listcos, we have the Listed Entity Directors (LED) programme.
  • And for charity board directors, we have the Governance for Outstanding Organisation Directors framework, or SGOOD in short.
  • For our new initiatives, I’m pleased to announce that SID is working with its partners to launch fresh courses that will support board directors in navigating the emerging challenges.

    (a) Together with Singapore Management University and Singapore Computer Society, we are planning to introduce a digital module as part of the SID-SMU Directorship Programme. This will cover topics around AI governance, generative AI for business strategy, the future workforce and talent management, and is scheduled to launch in the first quarter of next year.

    (b) We are also working closely with KPMG in Singapore and SGX RegCo to launch the Advanced Programme on Sustainability for Listed Entity Directors next month. This course is a masterclass for directors who want to delve deeper into the aspects of sustainability governance, including sustainability reporting and assurance covered in our ESG Essentials as part of our Listed Entity Director Programme.

    (c) Also launching next month is our Chair Accelerator Programme in collaboration with Heidrick & Struggle, in which we will take directors through a leadership course designed for newly-appointed and potential board chairs.

    (d) We will be launching the Listed Entity Directors Bridging Programme endorsed by SGX as a pathway for graduates of four recognised programmes to meet SGX’s mandatory training requirements for first-time appointees of SGX listed companies. Graduates of the four programmes only need to complete the LED Bridging Programme, and won’t have to take any other courses to meet SGX’s requirements.

    The four programmes are: SID’s SGOOD programme for charity board directors, SID’s board readiness programme, the SMU Directorship Programme and INSEAD’s International Directorship Programme.

    (e) I’m also happy to announce that we are collaborating with NCSS to develop a new edition of our long-standing SGOOD programme which will come online in the second half of 2025. Charity and IPC board directors can look forward to a blended programme featuring e-learning and in-person sessions to take their directorship competencies to the next level.


Connecting and strengthening the ecosystem

Building on our Alliance for Good Governance with more than 100 Alliance partners, we recently signed an MOU with the Institute of Chartered Accountants in England and Wales to formalise our mutual intention to collaborate on more projects.

SID is part of a working group chaired by Charity Council collaborating with other key agencies to enhance board leadership in the charity sector. We are also the lead partner in the Governance pillar of National Volunteer & Philanthropy Centre’s Company of Good initiative.

To support our corporate members, we are launching a number of benefits for boards and companies, including providing preference rates to board services offered by our ecosystem partners such as board evaluation and whistleblowing management.

And of course, through programmes and activities like today’s Directors Conference, SID serves to connect members, partners and stakeholders in the governance and directorship ecosystem.

We hope the networking and the exchange of ideas today will continue and encourage discourse that shapes policy making impact governance.

In a time of change and disruption, corporate governance stands as a cornerstone of sustainable business success.

Together, I am confident we can make a positive and lasting impact on the governance landscape.

I leave you with a quote from former US President JF Kennedy: “For time and the world do not stand still. Change is the law of life. And those who look only to the past or the present are certain to miss the future."

A warm thank you to all our speakers, panellists, partners, sponsors and to you, our guests and participants, for contributing your time and resources.

I wish you all a fruitful day ahead, as we seek to explore how boards are redefining their roles, risks and results, so that they don’t just conform and perform, but also transform their businesses.