Singapore, 25 August 2023 — The principles of governance, compliance, and transparency are more critical than ever in the fast-paced and complex business landscape. SGauditing underscores the importance of these three factors as they form the cornerstone of corporate resilience and effective risk management.

The Foundational Pillar of Governance

In this business climate, sound corporate governance holds organisations together. It sets the standard for decision-making processes, directing accountability at every level within an organisation.

Anchoring With Compliance

Alongside effective governance, compliance has become a protective measure in the complex legal and regulatory landscape. By building trust among stakeholders and shielding against potential legal challenges, the role of audit firms like Deloitte, EY, KPMG, and PwC in reinforcing proactive compliance cannot be overstated.

Establishing Trust Through Transparency

Transparency plays an equally vital role in the mix. Encouraging open communication about a company’s policies, actions, and performance can instil confidence and trust among stakeholders.

The corporate journey of Hyflux, Hin Leong, Noble Group, and Swiber Holdings provides a lesson on the fallout of neglecting these principles. The challenges these organisations encountered — predominantly tied to governance and risk management — underline the significant importance of firm governance, robust compliance, and absolute transparency in bolstering corporate resilience.

Transitioning to another illustrative case, Transport Minister S Iswaran and billionaire Ong Beng Seng, Managing Director of Hotel Properties Limited (HPL), are currently under investigation by Singapore’s anti-graft agency (CPIB). While no formal charges have been made against anyone, the resulting turbulence led to a significant fall in HPL’s shares. This immediate impact on investor confidence serves as a reminder of the extensive consequences of governance and compliance concerns.

Despite the troubling times, HPL’s swift communication about the ongoing investigation and Ong’s cooperation highlights the essence of transparency. It brings to light the continual journey organisations must embark on to enhance governance and transparency in a bid to regain and maintain stakeholder trust.

Similarly, the Government of Singapore itself is setting a commendable example in this regard. Recently, in response to the CPIB investigation, Prime Minister Lee Hsien Loong promptly requested Minister Iswaran to take a leave of absence, emphasising the commitment to transparency and ethical standards. It was also reported that Iswaran would remain in the country during this time, without access to any official resources and government buildings, reinforcing the high levels of transparency and integrity upheld by the Singapore Government.

Setting the Course for a Resilient Future

In conclusion, the principles of governance, compliance, and transparency are not only timeless but also extremely relevant in today’s business landscape. Their role in mitigating risks, promoting ethical standards, and sustaining public trust is indispensable. As companies navigate the volatile, uncertain, complex, and ambiguous (VUCA) world, these principles serve as a compass guiding them towards resilience and sustainable success.

For more thought leadership and in-depth analyses, visit SGauditing.

About SGauditing

SGauditing is a dedicated website focused on providing businesses with valuable resources and expert insights into the world of accounting and financial management. Our mission is to empower organisations by offering information and opinions on the best industry practices and trends, enabling them to navigate the complexities of modern accounting with confidence. Founded by a team of experienced accounting professionals, SGauditing combines in-depth knowledge with a passion for sharing expertise, positioning itself as a trusted source for accounting solutions, and thought leadership. Discover how we can help elevate your business’s financial management capabilities and stay ahead of the curve in today’s ever-evolving business landscape.

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