The revised Asean Corporate Governance scorecard will be adopted in Thailand next year in an effort to boost listed companies’ attractiveness in the eyes of foreign investors

Scorecard ‘to spruce up Thai listed firms’

Varin Trino
The Nation October 18, 2013 1:00 am

The revised Asean Corporate Governance scorecard will be adopted in Thailand next year in an effort to boost listed companies’ attractiveness in the eyes of foreign investors, according to the Thai Institute of Directors (IOD). Listed companies would be evaluated in five main categories – the same as the scorecard currently in use, but the evaluation will be given greater depth, as the number of questions will be raised from 148 to 243, said IOD president Bandid Nijathaworn. “The scorecard will lift the status of Thai listed companies to make them an attractive asset class in Asean. It will be a reference for foreign investors, and this will help promote fund mobilisation and foreign investment. This in turn will encourage Thai companies to improve their corporate governance,” he said.

The Asean CG scorecard is a joint initiative of the Asean Capital Markets Forum and the Asian Development Bank.
Yesterday, the IOD revealed the 2013 CG score of 526 listed companies. Under the assessment criteria embodied in 219 questions, 100 Thai listed companies showed average CG score of 67.7 per cent in 2012.
The average score rose from 77 per cent last year to 78 per cent, thanks mainly to higher scores in 3 areas – the rights of shareholders, disclosure and transparency, and equitable treatment of shareholders. The average score of the three areas is nearly 90 per cent.
The average scores in the role of stakeholders and responsibilities of the board areas were below 60 per cent.
By industry, those in the resource sector showed the highest average score, 85 per cent, followed by those in the financial sector, 83 per cent; technology, 83 per cent; agriculture and food, 79 per cent; property and construction, 78 per cent; services, 78 per cent; and industry, 75 per cent.
The scores of 87 companies, or 17 per cent, were above 90 per cent, compared to 59 companies last year.
“The company with the highest score, 97 per cent, is listed in the industry sector, while the one with the lowest, 31 per cent, is in the consumer-goods sector. The wide gap shows there is room for improvement, and this would raise the overall scores in the next assessment,” Bandid said.

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Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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