Wednesday 25 October 2023

Early Christmas Wish: Dissolving SGX Regco, Creating An Independent and Stronger Enforcement Stock Regulator

This is just my personal opinion. But depsite the formation of SGX Regco, the regulations of listed companies in Singapore is ineffective and SGX is not doing much to protect the minorities of shareholders. Here are a few companies that have been acting poorly in governance and reporting despite the presence of a regulatory body in Singapore.

Dasin Retail Trust

The company is technically insolvent because the assets valued on the balance sheet is false while the company has produced unexpected off balance sheet liabilites which is eroding equity. While the writing has been on the card since 2022, SGX Regco has not acted in good faith for minority shareholders to investigate into the company; this has allowed the chinese management to continue running the REIT and draw a pay while it continues to lose money and spring more bad news.

In my view, this is another Eagle Hospitality Trust. A investigation and liqudation of the REIT property should be enacted immediately by SGX Regco to save whatever is left for unitholders. The valuers of Dasin Retail REIT, JLL, should be inquired in how it had derived the valuations and why it has been decreasing so drastically every year.

Best World International Independent Directors

Despite being a profitable and cash rich company, the board of independent directors (ID) of Best World somehow had voted to not issue dividends (on the premise of cash conserving) while at the same time, used a questionable HR agency report to decide that the remeuration for executives of Best World be raised and the increase closely collaborates with the amount of dividends these executives had lost in lieu of no dividends announced for their shareholdings. The resulting act is that Best World executives are the top 5 highest paid CEOs/Chairman among listed companies in Singapore while its net profits are not even 10% of what these other listed companies earn.

Even among global industry comparables of the direct selling industry, these 2 executives are the one of the highest paid in the world, eclipsing the largest 2 direct sellers, Nuskin and Herbalife. This is public information but somehow SGX Regco seems to have missed out. 


Similar to Dasin there was an inflation in property valuations which is now deflating as time goes on.  investigation and liqudation of the REIT property should be enacted immediately by SGX Regco to save whatever is left for unitholders.

While there might be more companies such as Hong Fok & Hotel Royal (issue of IDs' independence) that could be questioned; as I have not read much I do not wish to list and delve. Nevertheless, I feel SGX Regco despite its formation has been poor in its enforcement work. As an early christmas wish, pherhaps SGX Regco should be dissolved and a new independent and stronger regulator should be formed under the purview of MAS. 

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