RHTLaw Taylor Wessing Head of Regulatory Practice Nizam Ismail was quoted in The Wall Street Journal article titled “Indonesia’s Tax Amnesty Casts New Shadow on Singapore”.
The article makes reference to Indonesia’s tax amnesty that highlights the challenge of Singapore to expand its private banking business while still safeguarding its reputation of good governance. In view of the 1Malaysia Development Bhd. financial scandal in Malaysia where misappropriated funds flowed through Singapore’s banking system, The Monetary Authority of Singapore has commented that the case has created “a dent in our reputation as a clean and trusted financial centre”.
The Singapore authorities has since responded with increased efforts to proactively target such cases and to further strengthen the country’s anti-money laundering efforts. However, as the Singapore financial system increases its reliance on private wealth, more of such cases could possibly unfold. Nizam contributed that this would be an occupational hazard of major financial centres.
The full article can be found in the “Markets” section of The Wall Street Journal dated Monday 3 October 2016.
RHTLaw Taylor Wessing’s Managing Partner Tan Chong Huat shared his views in this week’s topic in the Business Times’ weekly column, Views from the Top.
This article was first published in The Business Times on 26 September 2016.
Bridging the trust gap
SEP 26, 2016 5:50 AM
THIS WEEK'S TOPIC: What can be done - by business leaders and companies - to build trust?
Tan Chong Huat
RHTLaw Taylor Wessing LLP
At the risk of over simplifying the subject, I would recommend that business leaders and companies remember the acronym "GRACE" ie Governance, Risk, Anti-Money Laundering, Compliance & Ethics. These are important virtues when it comes to building trust.
The embracing of each and every one of them will be essential to guide and promote trust, and prevent the destruction of trust that have been established, built over time and maintained between companies and stakeholders.
Good governance that delivers performance and profitability which complies with regulations (among others, anti-money laundering as in the recent BSI / 1MDB case), conforms with good ethics, and is equipped with adequate and effective risk management will offer a good trust-enabling framework.
Needless to say, the honesty, diligence and accountability of business leaders will be of foremost importance in determining the trust quotient of the companies they helm. Examples include Dr Cheong Choong Kong (Singapore Airlines) and Warren Buffet (Berkshire Hathaway), just to name a notable few.
Over time, some of these companies become great institutions which are trusted and loved by their stakeholders, with a distinctive culture of honour and integrity. Hence the importance of "GRACE"