Singapore needs to raise its auditing and accounting standards to help boost the nation’s ESG credibility following a series of corporate scandals, according to the country’s top central banker.
“There have been several failures that are due to lapses in accounting, auditing, and some fraudulent activities are not as easily detected,” said Ravi Menon, head of the Monetary Authority of Singapore and the country’s financial regulator. “It is an area that needs to be addressed.”
While Singapore’s corporate disclosure level improved this year, it lags behind neighbouring countries like Malaysia and Thailand, according to a report published in October by the Securities Investors Association (Singapore). Compliance around environmental, social and governance standards is becoming an existential question for firms as sustainable investing assets swell to more than US$30 trillion ($40.15 trillion), according to a report by the Global Sustainable Investment Alliance.