SID launches initiatives to build director competencies

TO strengthen the competencies at the top of Singapore companies, the Singapore Institute of Directors (SID) unveiled a slew of new initiatives at its Directors Conference 2024.

These come as boards face evolving expectations and demands, as seen in regulatory changes and revisions to the Companies Act and Code of Governance for Charities, said SID on Tuesday (Oct 1).

One new initiative aims to equip newly appointed directors of listed companies with knowledge and skills to effectively execute their directorship duties.

Supported by the Singapore Exchange (SGX), the Listed Entity Director Bridging Programme includes nine modules on regulatory compliance and corporate governance.

It will provide an overview of the regulatory environment of Singapore-listed companies, discuss the responsibilities of directors of listed entities, and describe the functions of boards and its committees.

Speaking on how the programme could help first-time directors meet SGX’s training requirements, SGX Regulation chief executive Tan Boon Gin noted that it aligned with “calls for companies to inject new skills, experience and knowledge into their boards”.

Aspiring, new and current directors, as well as senior management of listed companies, will be able to enrol for the course in November. The initiative begins in March next year.

Another initiative highlighted at the conference is the Singapore Governance for Outstanding Organisation Directors Programme 2.0, which seeks to equip charity board members with directorship knowledge, skills, and understanding of non-profit organisations (NPOs) and good governance practices.

This updated iteration of the course is based on the latest edition of the Code of Governance for Charities and Institutes of a Public Character.

It incorporates new topics relating to anti-money laundering and counter financing of terrorism measures alongside topics relating to sustainability and digitalisation.

Jointly developed by SID and the National Council of Social Service, the new edition consists of nine modules covering governance challenges and considerations NPO directors face.

Registrations will open in February 2025, with the course to commence in June.

Another initiative is a playbook of best practices for board members to help their organisations build cyber resilience, the Cyber Resilience Guide for Boards, which will be launched in the first quarter of 2025. 

One in six new board directors appointed to publicly listed boards between last September and this August have also completed SID’s accreditation programme launched earlier this year, said the institute.

The training programme was launched to improve company directorship standards and corporate governance. A public registry of accredited directors can be found on SID’s website.

Other initiatives highlighted at the conference include the Advanced Programme on Sustainability that focuses on skills and knowledge related to sustainability governance.

Challenges for boards

Speaking at the conference, SGX chairman Koh Boon Hwee said both the board and senior management should balance the duality of building resiliency and innovating at the same time.

Koh highlighted the threats posed by climate change and its impact on businesses, as well as the effects of digitalisation on businesses and the ever-present risk of cyber threats that nearly all businesses face today.

He added that instead of focusing on internal factors, it is more beneficial to consider what the industry in which the business operates will look like in 10 years.

“Between now and then, what are the things that the board and the management have to do to get there? Without that overarching vision of where you want to be 10 years down the road, you will end up administering the company instead of taking the risks that are necessary to get you there,” he said.

He warned that if businesses stand still, they will probably be one of those that become extinct in the industry.

Commenting on other risks that boards should be aware about, Koh said boards should be concerned about population shrinkage.

He stated that many people believe the solution lies in increasing the number of machines and robots to boost productivity. He pointed out that history has shown that minimal capital investment can lead to productivity gains of more than 2 or 3 per cent on a national level.

“There will be new businesses and the old ones in spite of the management’s and boards of directors’ best efforts will fail. This is Darwinism at work,” he said.

Koh believes that in the long run, it is healthier for the economy when failing companies make way for new ones, rather than sustaining a landscape filled with what he calls “zombie companies” that persist without contributing any real vibrancy to the economy or the country.