SingPost dismissals highlight gaps in governance processes

The firings expose flaws in whistleblower handling and call for better board-management alignment.  

The recent dismissal of three senior executives at SingPost over mishandled whistleblower reports has put a spotlight on corporate governance in Singapore, underscoring the importance of transparency and due diligence in preventing governance lapses.  

Prof Lawrence Loh from the Department of Strategy and Policy at NUS Business School emphasised the need for systemic improvements. “Some of the changes may be related to due diligence, particularly between the board and management, as well as the due process,” he explained.

Prof Loh noted that a significant takeaway from the case is the importance of “disclosure and transparency, including what is important, what is material,” especially given the delays in transmitting critical information to stakeholders.  

The firings, he said, may signal a shift in expectations for boards and executive leaders in terms of governance.

“The division as well as the actions of both parties must be aligned,” he said. “There must be guidance, particularly from the bottom management… and very importantly, this relationship must go beyond just the rules of what is right. Beyond doing the things right, they must do the right things.”  

Prof Loh pointed to whistleblower management as a specific area requiring urgent attention. “What we need in many companies, beyond just simplicity, is to clarify the process, solidify the process, at the same time articulate the policy, communicate the policy, and then look at all the whistle blowing channels,” Prof Loh said.  

He also highlighted the need to raise awareness of external reporting mechanisms, such as the whistleblowing office at Singapore Exchange Regulation Company (SGX RegCo), to give stakeholders alternatives outside the corporate system.