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SMRT: Giving gd corporate governance a bad name

In Corporate governance on 18/12/2011 at 5:43 am

SMRT has the best corporate governance practices among the 30 companies of the Straits Times Index, according to an American consultancy, ST reported yesterday. SMRT did well on matters like compliance with the Code of Corporate Governance, structure of the board, what directors are paid in comparison to employees, and how much information the company discloses about itself and its involvement in community projects and events.

http://www.straitstimes.com/BreakingNews/Singapore/Story/STIStory_745994.html

Obviously the quality of management and public communications, and contingency planning were not among the factors considered.  

Olam International, SingTel, OCBC Bank, SIA Engineering. SIA, Noble Group, Neptune Orient Lines, Sembcorp Industries and Fraser & Neave (who ranked below SMRT in the corporate governance rankings done by this US firm) must hope that they are not tainted with the same brush as SMRT.

Seriously, the last thing the image of corporate governance in S’pore needs is to be associated with SMRT, or for SMRT to be the poster boy of good corporate governance here. Sigh.

And seriouisly, better take the bus (SBS only) the next few days. Who knows what else will happen to SMRT trains or its buses or its taxis.  The latter have not had problems, but better safe than sorry.

Looks like analysts will have to lower their revenue forecasts for SMRT to take account of the coming fines, severance packages for senior managers, and higher maintenace costs.

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  1. I have never really seen a piece critical to TH/GIC and the GLCs being published in the local papers, so really I will take this one with a large helping of salt since it only scratches at the surface.

    Once you go deeper, you will see the rot. Ex-scholars and ex-high ranking civil servants holding all sorts of positions in our GLCs, etc. One would be really impressed and think that these people are really that good until reality strikes you – none of the companies they run have good global reputations or are really world class since being spun off into corporate structures in the 80’s.

    Welcome to Singapore, where the government failed on its first try to foster entrepreneurship and created the Singaporean version of amakudari – the 10 tonne elephant in the room that no one talks about.

  2. The Local Authorities here is damn bloody good at camouflage, what they need do is to get hold of some Stupid Ang Mohs pay them and ask them to try to bullshit and expect everyone to believe them.
    PLEASED LAH, THIS TRICK DOES NOT WORK ANYMORE, THOSE DAYS ARE GONE, OK.
    THIS BLOODY STUPID MOH WHO TELLS THE PUBLIC THAT TRAVELLING IN THE TUNNEL AT 70 KMH, MORE THAN THAT IS DANGEROUS, IS IT TRUE? LTA SHOULD ACT MORE PROFESSIONALY NOT TO HAVE DOUBLE STANDARD WHICH NEED NO EXPLANATION FOR BOTH TUNNELS.
    THEY ARE RESTRICTING SPEED LIMIT TO A CRAWL, EVEN SOME AREAS AT 60 KMH ONLY FOR REASONS KNOWN TO THEMSELVES.
    IF LTA DON’T WANT THE PUBLIC TO SHOOT THEM LIKE THE SMRT BE MORE PROFESSIONAL OTHERWISE THEY WILL BE SHOT AT VERY SOON IN THE NEAR FUTURE

  3. Bro, good article. Do I have permission to republish your articles on other places online? Btw, the new TR should be launching very soon. It’s now called tremeritus.com
    :)

  4. No worries lah. As long Temasek majority shareholder of SMRT can liao. PAP just transfer more CPF money to Temasek to buy more SMRT shares. Won’t die one. More good years. Golden Age on horizon.

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