Taking the chair

Chew Choon Seng has been chairman of Singapore Exchange (SGX) since January 2011 and last year won IR magazine’s pan-Asian award for the best IR by a CEO for his work at Singapore Airlines. IR magazine recently sat down with the chairman to get his views on boardroom IR in Singapore.

What’s behind your award-winning approach to IR?

Prior to becoming CEO in 2003, I was the equivalent of CFO at Singapore Airlines and had direct responsibility for investor relations, so I was well aware of its value and importance.

As CEO I continued to be accessible to analysts and investor groups, and I personally led the presentation of results every six months and the dialogue the results spurred. But the credit really goes to my colleagues, who took the cue and gave priority to building on good relations with the investment community, including the media.

I found it best to be open but factual and forthcoming without forgetting fair disclosure and without compromising commercial competitiveness. Bear in mind your audiences, consider their interests, prepare well, and do not try to wing it or resort to PR spin. Listen carefully to questions; where one cannot give direct answers, it helps to explain why not.

Last but not least, there is always a place for a sense of humor and humility. An objective and critical review of every presentation and Q&A session is always helpful in identifying areas for improvement.

How are you enjoying the switch from being the top executive in the boardroom at Singapore Airlines to the top non-executive at SGX?

The roles are obviously different and I have adapted to the change from leading and managing the airline to chairing the board of the exchange. I am mindful that my job now is to guide management (rather than outguess), to ensure we practice good governance and make certain the interests of shareholders and other stakeholders are properly considered. The six years I had as a director on the SGX board [prior to my chairmanship] helped to smooth the transition, plus both businesses are similar in that they are international and regulated, as well as being in the public eye.

Do you still meet with investors now that you are chairman of SGX?

Meeting with investors is more appropriately a management function. The board is kept informed of matters brought up by investors and, as custodians for the shareholders, my fellow directors and I welcome comments and suggestions from investors. Indeed, many investors use the AGM as a forum for giving us their input.

What does Singapore have to offer international companies looking to raise capital?

SGX offers itself as the gateway to Asia – that is, through SGX, companies can gain access to an Asian investor base with $1.5 tn in assets under management, whether for raising capital through the issue of shares and bonds, or for the trading of derivatives to manage business risks.

The exchange has a very international constitution, with 40 percent of the listings coming from overseas. That accounts for nearly half of the total market cap, and SGX has established a strong position
internationally in various sectors, including business and investment trusts, maritime and offshore facilities, and commodities and resources.

SGX has also earned the trust of market participants. It relentlessly pursues efficiency and cost competitiveness and has invested in state-of-the-art technology for its infrastructure. It also provides reliable clearing and settlement facilities, as well as depository and other support services, in a jurisdiction that is fully aligned with international standards, not least on good corporate governance and safeguarding of investor interests.

How fierce is the rivalry between the stock exchanges in Hong Kong and Singapore?

In this day and age, all exchanges exist in a global market and the developments in consolidation demonstrate this. But the dimensions of growth in Asia and the geographic spread will be sufficient to support multiple exchanges, just as we have today in Europe and America. It is not a two-horse race between SGX and HKEx.

You also chair the Singapore Tourism Board and sit on the board of one of Singapore’s sovereign wealth funds. Do you think Singapore has more exciting prospects to offer as a financial center or as a holiday destination?

Singapore aspires to be both a financial center and a travel destination of choice; the two are complementary. Making Singapore a more conducive and interesting place to live, work and play will attract more visitors and support development of the financial hub.

This article appeared in the October print edition of IR magazine.