From the Dean's Desk

September 2005

New Dynamics

The School is entering an exciting phase of change and expansion brought on by competition and globalisation. We will rise to the new challenges by creating a community of highly successful individuals bonded by an illustrious heritage, a global vision and tight team work. We draw from one of the finest groups of faculty anywhere in Asia who not only integrates world-class research into their pedagogy but who are aware of the Asian perspective that our foreign competitors cannot fully appreciate.

In this phase, we will consolidate our resources for key programmes, maintain a world accomplished faculty and scale up our executive education, our new building and our fund-raising efforts.

It is in this new dynamics that we will move to the next level in the global ranks to become among the world’s top 30 business schools.

Growth Strategies

We will adopt four strategies to grow in this environment of change and expansion:

  • Professionalising our administration
    The Undergraduate, Graduate and Executive Education Offices have been restructured to deliver maximum value to our customers throughout the service delivery chain. We will also expand our administration as we augment our services, programmes, students and participants. Our customers will see us tapping on our increased strength to continue to maximize their satisfaction.
  • Teaching and programme innovations
    The curriculum will be fine-tuned to cater to market demands using cutting-edge research innovations from our faculty. From double degrees, joint degrees with internationally renowned universities, increased number of concentrations to leadership courses and improved teaching methodologies, students will have greater choices to support their interests and aspirations.

    Student development will be a big feature at both undergraduate and MBA levels. This includes a Leadership Differentiated Track and a specially designed executive education programme for the crème de la crème of our undergraduates; an expanded student exchange programme to encompass half of our student population; and a completely revamped Career Services unit.

    We seek to groom leaders and transform businesses in Singapore, Asia and the world. Entrepreneurs, managers and corporations can look to enhancing their competencies through an expanded Executive Education Programme aligned with strategic partners including London Business School, Stanford University and UCLA. The programme will include more leadership and customised courses providing the quality of executive education found only at the World's finest global business schools. Watch this space for new modules and flagship programmes.

  • World-class facilities
    We will lay the infrastructure needed for growth. The School will have a new S$20 million building in 2007-8. Students and customers can look forward to facilities which would enable them to learn, interact, and access information and communication amenities seamlessly. The 9, 000 m2 building will occupy a highly visible location and accommodate a highly connected cluster of administration and learning spaces. The distinctive landmark this side of Kent Ridge campus will mark NUS Business School as an institution of distinction.
  • Funds for expansion
    We will need the philanthropy, connections and service of our 25,000 alumni and the corporate sector more than ever to deliver these enhanced programmes and value in the next few years. The resources of our alumni and business leaders appreciating our work and reputation will jumpstart programmes, scholarships, bursaries and research, and push the School immediately into the echelons of the world’s top b-schools.

Chris Earley
Dean

 

Lead Story

SE Forum 2005 showcases Bizaders' leadership and passion

Organised by the undergraduate students of NUS Business School, SEforum 2005 expanded the inspirational platform of the first SEforum 2004 by providing an enabling environment for social agencies, youth and budding entrepreneurs to embark on socially motivated business projects.

Education Minister Tharman Shanmugaratnam, who was impressed by the colourful exhibition put up by 19 social enterprises in Singapore, said in his speech at the Forum, “I am heartened to see the passion our youths have for social causes. Possessing intrinsic desire is the root of creation of the greatest impact and success.”

Associate Professor Quek Ser Aik, Vice-dean of Undergraduate Studies for NUS Business School, said in his opening address that the national-level conference, which required a year of preparation, brought out the “full leadership potential of the students”. “That they managed to involve business people, civil servants, social fighters, NGOs, fellow students, local and foreign social entrepreneurs and members of the public, local and international, in one platform, speaks volumes of their vision and skills in stimulating positive social change.”

The 19 social enterprises included the Highpoint Halfway House, which aims to put former offenders on the road to recovery, and has opened a popular restaurant, Goshen, where ex-offenders constitute 80 per cent of the full time staff strength. Another social enterprise is NUS-SIFE (NUS-Students in Free Enterprise), http://www2.bschool.nus.edu.sg/corpdev/
bizleads/ Jul05/studenthighlight.htm#sh2, which is part of a global student organisation promoting social entrepreneurships.

"Social entrepreneurs respond to their own instincts and values, even though there were strong family and social pressures pushing them in the direction of marketable and socially acceptable jobs. Any one of them could have been incredibly successful and made millions. But they drove forward in their visions because they believed in them, and they were able to convince others along the way. This courageous spirit is the beginning of a spectrum of social change."

Dr Pamela Hartigan, Managing Director of the Schwab Foundation for Social Entrepreneurship, a Swiss-based organization focused on advancing the practice of social entrepreneurship globally, educated the audience on the different models of Social Entrepreneurship in the world, illustrating their relevance in both developed and developing nations.


"Making poverty history is a sound bite that has been repeated over and over again, but poverty should not just be solved through charity. We have to move from charity to inclusiveness, from inclusiveness to a just society, and from a just society to peace."

Mr Anil Chitrakar, the energy planner, conservation advocate and Ashoka Fellow from Nepal, is part of 1,500 Ashoka Fellows in 53 countries around the world who are social entrepreneurs. He stressed that charity and the business world are not mutually exclusive, and any gap between the two can be bridged by social entrepreneurs.

Participants were also treated to a panel discussion on social needs in Singapore by both practioners and academics, including Ms Braema Mathiparanam, President of Association of Women for Action and Research (AWARE); Associate Professor Tan Ngoh Tiong of the NUS’ Department of Social Work; and Mr Sam Kuna, Executive Director of Teen Challenge.

The Forum drew a full-house crowd of 1,300 at the University Cultural Centre on 13 August. Education Minister Tharman Shanmugaratnam and NUS President Professor Shih Choon Foong graced the occasion.

 

School Notes

Inaugural UCLA-NUS Executive MBA commencement ceremony in LA

The first intake of participants in the UCLA–NUS Executive MBA program graduated in a glittering commencement ceremony on August 27 at the UCLA Anderson School of Management, Los Angeles, USA.

Fifteen months ago, this inaugural class brought together 18 participants from around the world, with strongest representation from the United States and Asia. Mostly senior managers and key decision makers from diverse industries, these high-fliers devoted two weeks once every three months to formal classes. These six two-week sessions (over 15 months) met in three different business hubs - Singapore, Los Angeles and Shanghai, and brought out the best in the participants as they matched the pace and rigour of the programme. Even lunchtime was an occasion for learning.

All the hard work translated to pride and joy and a strong sense of personal and professional accomplishment at the commencement ceremony. The participants particularly expressed their delight about the global nature and rigour of programme, as well as the quality of professors and fellow-participants.
(For details of the UCLA-NUS Executive MBA program, please visit www.ucla.nus.edu.)

In their commencement addresseses, Professor Bruce Willison, dean of UCLA Anderson School of Management, and Associate Professor Jochen Wirtz, Academic Co-Director of the UCLA-NUS Executive MBA Program at NUS Business School, expressed their immense pride in the accomplishment of this newest group of Executive MBAs. Dean Willison conferred the degrees on the graduates.

The class chose Mr Lai Chong Meng as the valedictorian to speak on their behalf. To read more about him, visit http://www2.bschool.nus.edu/corpdev/bizleads/Sep05/
perspective.htm.

At the ceremony, the brand-new alumni of the schools gave away two Teaching Excellence Awards to Associate Professor Kulwant Singh from NUS and Professor Christopher Tang from UCLA.

Careers opportunities and challenges in Singapore's finance sector

The Saw Centre for Financial Studies and The Institute of Banking and Finance are presenting a series of three talks by industry veterans on the challenges and career opportunities offered by the rapidly expanding financial services sector in Singapore. The organisers hope to help students understand the requirements of the industry and prepare themselves adequately for a career in finance upon graduation.

The first talk of the series, “Singapore’s Fund Management Industry and Career Prospects”, was held on 31 August and warmly received by the students, with a full-house audience.

Mr Andrew Kwek, Executive Director of the Investment Management Association of Singapore, talked about the various factors that have fueled the growth of the fund management sector. These include high domestic saving rate and the introduction of new products. The growth offers many entry-level positions that fresh graduates can pursue. The audience particularly liked Mr Kwek's witty presentation and practical tips on job search.

The other talks covered careers in banking (Mr Terry Lee, Executive Director of ACI Singapore - The Financial Markets Association on 7 September) and wealth management (Mr Henk de Glint, Deputy Managing Director on 14 September). Watch this space for updates on these talks.

Investment experts share perspectives on personal finance

From the academic world

Mr John Allen Paulos, Professor of Mathematics from Temple University in the US and the author of several bestsellers, including A mathematician plays the stock market, was invited to speak to the NUS community on 12 August.

Prof Paulos delineated how mathematics can help us understand the vagaries of the stock market. He gave an engaging presentation, using real life scenarios to examine the paradoxes associated with the market. He also illustrated his intriguing analysis of investor psychology with his own misadventure with the now defunct WorldCom, a company that became synonymous with fraud in the late 1990s.

The Department of Decision Sciences and Saw Centre for Financial Studies of NUS Business School organised the talk with the Department of Mathematics, Faculty of Science. More than 300 staff, students, alumni and members of the public attended the talk.

From the corporate world

In another talk organised by the Saw Centre for Financial Studies, Mr Tay Han Chong, Head of Investments, Treasury and Asset Products for Global Consumer Banking at Citibank, Singapore, spoke to an audience of 110 from the NUS community.

Mr Tay spoke on the results of a recent Citibank study on the emotions behind investing, and how having different psychological biases affect investment decisions. Singapore investors were found to be more risk-averse due to unfamiliarity with assessing and managing risk.

Mr Tay also highlighted the need to review various investment instruments as a portfolio rather than as individual instruments. He underlined the importance of starting a regular savings and investment plan early in life.

A prelude to NUS Business School's 40th Anniversary Gala Dinner

NUS Business School will be celebrating its 40th anniversary with a gala dinner at Meritus Mandarin on 5 November. This will be an evening of nostalgia and networking as faculty members, staff, alumni and corporate partners meet to celebrate this significant milestone of the School.

To commemorate the celebration, the School will publish a 172-page book entitled: Developing Business Leaders For The Global Marketplace, Commemorating 40 Years of Business Education.

The hard-cover book is well-illustrated, containing exclusive interviews with prominent alumni, outstanding students, faculty and staff reminiscing the “good old days”, and sharing their aspirations for the School.

For further information about the gala dinner, please check out the website, www.bschool.nus.edu/bizdinner/.

Dean meets International Resource Panel Patron

Dean Professor Christopher Earley hosted a dinner on 27 August to thank the Patron of the NUS Business School International Resource Panel (IRP), Tan Sri Frank Tsao, for his support of the School.

Among the guests present were IRP Chairman Mr Peter Tay, alumni Mr Wong Ah Long and Mr Yeo Keng Joon. Vice-deans, Associate Professors Prem Shamdasani, Quek Ser Aik and Trevor Wilkins were also present.

The NUS Business School International Resource Panel acts as a special advisory panel for the School's development as the leading business school in Asia. It supports the School’s growth by garnering industry feedback, establishing key networks and bringing in financial and other resources.

Visitors from abroad

Indonesia

On 16 August, a group of 35 faculty members from the Economic Faculty of Airlangga University, Indonesia, visited NUS Business School. The team was led by its dean Professor Budiman Chr. The Corporate Development Office hosted the visitors with a presentation and briefing on the structure and development of the School. The visit ended with a campus tour and exchange of corporate souvenirs.

Bangladesh

A group of 30 business students from the American International University of Bangladesh (AIUB) Educational Group (Business), and their coordinator of Student Affairs Assistant Professor Ehsan Ahmed visited NUS Business School on 2 September. The visitors wanted to learn more about the School’s MBA programmes and student life.

Ms Chua Nan Sze, Marketing and Admissions Manager for the MBA Programs Office, gave an engaging and informative presentation on the School’s various MBA programmes. Nikhil Kochbar, head of the MBA Club, and his club members were also present to mingle with and give the visitors a glimpse of MBA student life at NUS.
Based in the capital of Bangladesh, Dhaka, AIUB is committed to excellence and innovation in computer-based education, discovery and application of knowledge through research and creative activities.

 

Student Highlights

Mr and Miss Bizad finalists revealed at Jam and Hop 2005

The School held its Jam and Hop, “Reveal”, at Zouk on 24 August. The night started with a pageant preview, in which the Bizad Pageant finalists were announced. For the first time, there was “open voting” for the most popular Pageant finalists, and the result contributed 10 per cent tothe final score. The segment drew a large crowd eager to support their favourite contestants.

Following the pageant preview was a stage game, “Search for Mr Hunky and Miss Sexy”, where three male and female contestants were selected and invited on stage. The male and female winners won for themselves a bottle of Jack Daniel each.

The event saw a big turn-out from the Bizad population, who stayed on after the programme to party.

BizBall "Secret Garden" a grand finale for Freshmen Orientation 2005

BizBall 2005 was held at Mandarin Court in Meritus Mandarin on 3 September.

The highlight of the ball was a combined performance by the three pairs of the finalists of Bizad Pageant 2005.

There was also an impromptu “Prom King and Queen” segment where the seniors were picked from the audience to vie for the titles of Bizad Prom King and Queen 2005. Diana Lee and Khoo Wee Sheng, both BBA Year 3 students, won the respective segments.

The evening ended with the screening of a video showing activities from the entire Freshmen Orientation Programme 2005, from the Freshmen Orientation Camp and Rag and Flag to Orientation Week and Jam and Hop. Tokens of appreciation were also presented to heads of four programmes.

 

Staff News

Dean speaks at Harvard Business Review Conference in Chile

The dean of NUS Business School, Professor Christopher Earley, was a keynote speaker at the “Diversity and Leadership” conference in Chile held from 30 to 31 August.

Prof Earley spoke on “Cultural Intelligence” (CQ) as a combination of intelligence quotient and emotional quotient in adapting to different cultures. CQ consists of the actions one takes, the level of motivation to adapt, and the capacity and willingness to change one’s habits in a culturally diverse environment.

He shared on ways to develop CQ in employees so as to lead globally diverse organisations effectively, and compared traditional approaches to CQ approaches in meeting cultural differences. For example, CQ managers identify specific strengths and weaknesses in a culture and provide training for weaknesses.

Prof Earley developed the new idea of cultural intelligence http://www.bizjournals.com/charlotte/stories/2005/09/12/focus23.html?page=2 with Elaine Mosakowski, and has co-authored several books on the topic, including Developing Cultural Intelligence at Work (Stanford University Press, 2005).

Five hundred business leaders from Chile and South America attended the Conference sponsored by Harvard Business Review Latin America and Universidad de Catholico.

Other speakers included the Chilean Minister for Trade, a professor from the Wharton School of the University of Pennsylvania and a consultant from the Centre for Creative Leadership (USA).

 

Faculty in technopreneurship awarded National Day Public Admin Medal

Associate Professor Wong Poh Kam from the Department of Business Policy was awarded the National Day Public Administration Bronze Medal on 12 August.

Assoc Prof Wong, who has been the Director of the NUS Entrepreneurship Centre since 2001, received the award for his contribution to entrepreneurship education in Singapore.
He said modestly of his win, “This award is not really for me, but for all my colleagues in NUS who share the passion of contributing to educating a future generation of entrepreneurial leaders in Singapore.”

The other winners of the Bronze Medal are Dr Catherine Chua, Head of University Health and Wellness Centre, and Mrs Phang Wat Kum, Jennifer, Vice-Principal of NUS High School of Mathematics & Science.

Long Service Awards

At a staff meeting on 6 September, many staff and faculty meetings with the dean Professor Christopher Earley, various members of the NUS Business School family were given the Long Service Awards for their dedicated service and contribution to the School in the past two decades. The recipients are:

25-Year Award

  • Assoc Prof Ter Kah Leng (Business Policy)
  • Assoc Prof Hum Sin Hoon (Decision Sciences)
  • Professor Leong Siew Meng (Marketing)
  • Mr Abdul Rashid Bin Ghazali (Dean’s Office)
  • Ms Renuka Peter (Dean’s Office)

20-Year Award

  • Assoc Prof Lawrence Loh (Business Policy)
  • Professor Lim Chin (Business Policy)
  • Assoc Prof Quek Ser Aik (Decision Sciences)
  • Dr David Wan (HRM Unit)
  • Assoc Prof Lim Ghee Soon (Management & Organisation)
  • Dr Chia Ho Beng (Management & Organisation)
  • Assoc Prof Ang Swee Hoon (Marketing)

15-Year Award

  • Assoc Prof Teo Chung Piaw (Decision Sciences)
  • Assoc Prof Ho Yew Kee (Finance & Accounting)
  • Dr Winston Kwok (Finance & Accounting)
  • Dr Chng Chee Kiong (Finance & Accounting)
  • Ms Chee Mew Leng (HRM Unit)
  • Mr Abdul Rahim (Dean’s Office)

10-Year Award

  • Assoc Prof Pangarkar Nitin (Business Policy)
  • Assoc Prof Chen Renbao (Finance & Accounting)
  • Ms Cui Jing Lan (MBA Office)
  • Ms Jocelyn Neo (MBA Office)
  • Ms Hamidah Bte Rabu (Dean’s Office)
  • Mr Asnan Bin Mat (MBA Office)

New appointments

Associate Professor Chen Renbao has been appointed Academic Director of the NUS-PKU International MBA Program for a period of one year from July 2005 till June 2006.

Associate Professor Peter Hwang has been appointed as Director of the Asia Pacific Chinese (APEX-Chinese) MBA program from September 2005.

Tenureship

Associate Professor Inmoo Lee was granted Associate Professorship with tenure with effect from 1 July 2005. Formerly an Associate Professor with Korea University, College of Business Administration, Dr Lee's research in corporate finance has published in several top-tier finance journals.

 

 

 

 

Alumni Updates

CEO Unplugged 2005 - The 10th Instalment

CEO Unplugged is a series of informal talkshows that invites CEOs to share their views and experiences on a variety of topics-both business and personal.

The 10th Instalment held at NUS Business School on 25 August drew a full-house audience of over 200 participants comprising high-profile members of the industry, alumni, current students from NUS and other universities.

CEO guests are this instalment’s guest CEOs were Mr Alphonsus Chia (Deputy CEO, IE Singapore), Mr Hans-Ulrich Mayer (Managing Director, Nestle Singapore) and Ms Kitty Fong (General Manager, Nokia Singapore). Here are some highlights and insights from the guest speakers:

Mr Alphonsus Chia
- Deputy CEO, IE Singapore
More Singapore success stories needed
Singapore companies have got to be less complacent and more aware that many other countries are moving much faster than before.. Our nation needs more success stories like SIA to fuel the growth of our nation.

His take on leadership
Leadership starts and ends with people. A good leader is one that is able to lead and motivate his people towards a common goal. In this vision, you need an organisation to be creative and innovative, to be constantly adapting to the needs of the people while ensuring consistency and stability where it matters. Balancing these two areas are essential in ensuring a company moves forward smoothly.

What are some of the beliefs that you continue to hold on to?
Be true to yourself. When you start working, you will find that you will be pulled in different directions to meet your objectives. You will face different opinions so you have to be sure of your principles and stay true to them. You have got to stay focused and carry through.

 
Dr Hans-Ulrich Mayer
- Managing Director, Nestle Singapore

The addiction of working overseas
I believe that those who start to travel and work overseas find the experience addictive and difficult to stop. When you work in different countries, you discover that every culture is different and every country has a lot of exciting things to offer, making life that much more memorable.

What attracted you to switch to Nestle
Nestle offers the opportunity of working in a fast-moving consumer market where one is able to gain a total overview of the industry from back-end operations to front-end marketing is a refreshing change.

Nestle is a company which deals with many technologies, markets and industries. If one sees the diversity and the international outlook of our company, one will understand that we are one of the most innovative companies in the world.

 
Ms Kitty Fong
- General Manager, Nokia Singapore

Her postgraduate studies
It was the different perspectives offered by my classmates which made my postgraduate course a really interesting and meaningful one.

However, I felt that there was a need for Asians to start asserting themselves and voicing their opinions more. Today, we are working in a competitive environment, looking at a global market where we are no longer competing among ourselves but with talents all over the world. If you do not stand up and voice out, it will be more difficult for us to stand out in this global environment today.

Customer-driven solutions
For Nokia, our focus is making our products and services as intuitive as our consumers want them to be. Human technology is Nokia’s design vision where we start from the end-user.

Follow your hearts in carving out your career
You have to find happiness in whatever you do. Usually the answer lies within yourself and knowing what you want. Throughout your student life and career, it is important to take it easy and listen to yourself. Know what you really need from life, because in the end, that will be what really matters.

The NUS Business School Alumni Association organised the highly successful series.

Bizad80's strong bonds "Then & Now"

Bizad Class’80 held their 25th Anniversary Reunion, themed "Then & Now", on 27 August at the Royal Plaza @ Scotts.

The evening began with cocktails at the poolside followed by a dinner party. Alumni Mr Ronald Ong and Mr Francis Yuen entertained the crowd with nostalgic renditions of the evergreens of the 70s and 80s. Lecturers and classmates then spontaneously went on stage to share fond memories. A commemorative DVD was also screened to recount the good old days.

Associate Professor Lau Geok Theng, Assistant Dean of Undergraduate Student Affairs, attended the reunion as one of the 1980 alumni. He said, “It was a fun evening of renewing old ties with former classmates and lecturers and networking for the future. The program was well organised. Our bonds of friendship are strong and I am sure like me, everyone is looking forward to the next get-together.”

Eighty people attended the reunion, including former lecturers such as Professors Tan Chin Tiong and Wee Chou Hou, Mr Chua Joon Eng, Dr Juzar Motiwalla, Dr Ling Sing Chee, Dr Mukul Asher and Dr Ta Huu Phuong.

 

Perspective

UCLA-NUS Executive MBA Program equips senior managers with skills to compete in a global economy

"The UCLA-NUS EMBA is a unique programme structured to equip participants with a solid foundation to operate effectively in a highly competitive global environment, "said Mr Lai Chong Meng, graduand and valedictorian for the first cohort of UCLA-NUS Executive MBA Program.

I am 60 this year, and like others from my generation, I witnessed the splendid transformation of Singapore.
As a child, I grew up amidst the poverty of family and friends.
The hard-work, determination, humility and gentleness of some of my closest kin and friends gave me the determination to succeed in my own life. I started as an apprentice in Singapore, did my studies in England, returned to Singapore and was subsequently sitting on several senior general management positions.

My wife Judy has been a very supportive partner; she gave up her job when our two children, son Wai Cheong and daughter Siu Yin were young. Now Wai Cheong (University of Western Australia - Economics), 29, and Siu Yin (National University of Singapore - Mechanical Engineering), 27, are pursuing their own successful careers.

Though I have achieved significant success in my career, I was not content to rest on these laurels. Singapore progressed from a third-world country to that of a first world in less than 40 years. In the context of a globalised economy, its success in going forward will depend on whether the population has the skills to create a sustainable value-add to its trading partners. Any executive who wishes to remain relevant to the needs of his organisation and its customers must continue to upgrade himself with the relevant skills.

That was why I decided to enrol in the UCLA-NUS Executive MBA (EMBA) Program, a rigorous 15-month journey that led me to classrooms in Los Angeles, Singapore and Shanghai. The UCLA-NUS EMBA is a unique programme structured to equip participants with a solid foundation to operate effectively in a highly competitive global environment.

Now, after graduation, I am like a seasoned carpenter with a new set of tools, or at least a set of well-honed existing tools! These tools have enabled me to be more structured in my thought process. I have acquired a much better understanding of the need to balance informed intuition with structured analysis in a decision-making process, and have become a much more effective manager as a result of the programme.

Mr Lai Chong Meng graduated with 17 other classmates in the first cohort of the UCLA-NUS Executive MBA Program at the Anderson School of Management in the University of California, Los Angeles, and was the valedictorian for the commencement ceremony. As a senior executive, he was instrumental in the start-up of the main core businesses of Brambles (a listed company on the Australian and London Stock Exchange) in Asia when he joined the company in 1995. Today, the core business units employ more than 700 people in Asia with revenue in excess of US$100 million. Previously, he held senior management positions in industries such as shipbuilding, manufacturing and construction.

 

Special Feature

Corporate governance for business success

Business Leads catches up with Associate Professor Mak Yuen Teen, whose book From Conformance to Performance: Best Corporate Governance Practices for Asian Companies was launched on 29 July 2005 by McGraw-Hill and the Singapore Institute of Directors at the Executives' Club, OCBC Centre.

The book launch attracted 150 people, mainly directors, senior executives and industry professionals. Assoc Prof Mak gave a speech on "What's New in Corporate Governance?", which covered changes in the recently revised Singapore Code of Corporate Governance, emerging best practices in international companies, changing expectations with regard to directors' duties, and key issues to be addressed in “whistle- blowing” arrangements in organisations.

How does conformance to regulations lead to better performance? Is that not a contradiction?

There is a misunderstanding that corporate governance is purely about conformance to regulations. Companies often approach corporate governance with a "box-ticking" mentality, making sure that rules and codes are complied with in form, rather than in substance.

Real improvements in corporate governance can only come about if companies embrace the spirit of good corporate governance that includes inculcating a strong ethical culture within the organisation emanating from the very top. This would mean having a board of directors who have the right skills, are committed to the company and have adequate independence.

Currently, local companies pay their independent directors between S$15,000 to S$25,000, when countries such as Australia or UK pay theirs at least three times as much. If companies embrace the spirit of good corporate governance, pick directors with the attributes I referred to above and pay them appropriately, then the governance and the performance of the companies will improve.

The book goes far beyond teaching companies how to comply with regulations and codes. It also provides ideas on practices that can truly improve corporate governance and result in better performance.

Any successful examples of Asian firms which have used corporate governance to their advantage?

The typical Asian company, because of its concentrated shareholdings, faces special challenges because of the blurring of the lines between shareholders, the board of directors, and management. The biggest challenge is ensuring that independent directors are able to protect shareholders' interests against conflicting interests of management, and also ensuring that large shareholders do not take advantage of small shareholders. The latter problem is usually less of an issue in companies in the U.K. and U.S., for instance.

Companies like Singtel, Keppel Corp, and SMRT take corporate governance very seriously. Singtel is one of the few Singapore companies with an independent Chairman of the Board, and the first Singapore company to have the CEO and CFO sign off the financials. Singtel has a very well-designed performance share scheme for its CEO, and good disclosure of remuneration, amongst other good practices.

Keppel Corp has a lead independent director to compensate for the fact that they do not have a separate Board chairman. It is one of the first few Singapore companies to have a “whistleblower procedure”.

In Asia, we generally still do not have what I would call effective shareholder engagement, whereby unaffiliated institutional investors who have a significant stake in a company engages with the senior management and the board to effect real changes in corporate governance, such as replacement of the CEO and directors.

We have seen Sovereign Asset Management attempting this in South Korea but recently quitting their presence completely there, after appearing to have made little headway. Yet, there is increasing evidence that such shareholder engagement leads to significant improvement in stock price performance.

In your opinion, and based on the recent Corporate Governance and Financial Reporting Centre (CGFRC) survey findings, what will be the future trend of corporate governance in Singapore? Is it picking up at a fast enough pace?

I think recent corporate scandals relating to companies such as CAO, Citiraya, ACCS, Informatics and others have led to considerable soul-searching about the true state of corporate governance in Singapore and whether further improvements are needed.

However, the counterbalance to this is the concern that further enhancements to our corporate governance framework will increase business costs, and make Singapore uncompetitive. My view is that we need to first make sure that existing rules are properly enforced.

Singapore can never set as high a threshold as the U.S. in terms of corporate governance standards, but I think we should constantly review our standards relative to the more developed economies. Corporate governance costs are a small part of total business costs, and if properly implemented, corporate governance can minimise the risk of corporate governance failures and the massive destruction of shareholder value and damage investor confidence.

Singapore is moving a little slower than I like, but improving corporate governance is a long distance race, not a sprint. I think more can be done to assist companies to move further up the curve, such as training and building up a pool of good directors.

Why is the area of corporate governance of special interest to you?

Corporate governance is one of those areas where there is almost a seamless relationship between research, teaching, policy making and practice. This is not the case in many other areas, where there is a large disconnect between research, teaching and practice.

The experience and knowledge I have gained from sitting on various corporate governance-related bodies in government and industry and from my interactions with directors, executives and other professionals immensely enrich my teaching of this subject at NUS Business School. I would say that I've learnt as much from practitioners as I have, hopefully, enhanced their understanding of issues.

 

Coming Events

DBS NUS Heritage Run
18 September 2005

Mid-Autumn Festival Celebration
19 September 2005

NUSBSA Happy Hour
29 September 2005

3rd Sino-Japanese Optimization Meeting in the e-Business Era
31 October - 2 November 2005

40th Anniversary Reunion Dinner
5 November 2005

Calendar of Events - http://www2.bschool.nus.edu.sg/corpdev/calendar3/

 

In Touch, In Tune
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