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Too much emphasis on EP candidate's business savvy: Experts

SINGAPORE — The top executives from a range of companies — from blue-chip heavyweights such as CapitaLand, Singapore Airlines and Keppel Corporation to homegrown groups such as Hyflux, Super and Yeo Hiap Seng — would, on paper, qualify to stand in the Presidential Election based on the revised eligibility criteria proposed by the Constitutional Commission.

The 2011 Presidential Election candidates. TODAY file photo

The 2011 Presidential Election candidates. TODAY file photo

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SINGAPORE — The top executives from a range of companies — from blue-chip heavyweights such as CapitaLand, Singapore Airlines and Keppel Corporation to homegrown groups such as Hyflux, Super and Yeo Hiap Seng — would, on paper, qualify to stand in the Presidential Election based on the revised eligibility criteria proposed by the Constitutional Commission.

Among the proposed revised eligibility criteria, the most stringent one is to raise the requirement for private-sector candidates, who must helm a company with at least S$500 million in shareholder equity, up from S$100 million in paid-up capital.

Based on Accounting and Corporate Regulatory Authority (Acra) records, 691 companies would meet this revised threshold, up from 158 when the original one was introduced in 1993. However, the actual figure could be higher since the vast majority of Singapore-incorporated companies do not file their financial statements with Acra. Among those who may just fall short, based on their latest annual reports available online, are companies such as OSIM International.

Presidential hopefuls from the private sector must also have held “the most senior executive position in the company”, the commission said in its report released on Wednesday.

However, some business and corporate governance experts told TODAY that the raised eligibility criteria place “overwhelming weight” on candidates’ financial and management nous. Other qualities expected of the President, such as empathy, trustworthiness and wisdom, are not given due emphasis, they said.

Mr Victor Tay, former chief operating officer of the Singapore Business Federation, noted that the President is required to uphold both ceremonial and custodial roles.

Hence, besides business acumen, other “qualitative traits” such as a socio-political understanding of the region and contributions to the society should also play a role in assessing who will make a good President, said Mr Tay, currently president of the Association for Persons with Special Needs.

Singapore Management University (SMU) law professor Jack Lee said the financial criterion should not require the President to be a “financial whiz”, especially since he is assisted by the Council of Presidential Advisers.

“The emphasis on the financial criterion may mean that some people, who are otherwise eminently qualified to be the President due to their experience and judgment, would not be able to stand for election … This would include people like academics, ambassadors, those who worked in the social welfare sector,” Dr Lee added.

Others, such as Professor Lawrence Loh from the National University of Singapore Business School, felt that the revised criteria are in line with the President’s custodial role.

“The shareholders’ equity paints a more accurate story of a company’s growth and development,” said Assoc Prof Loh, who directs the school’s Centre for Governance, Institutions & Organisations.

Companies with at least S$500 million in shareholders’ equity fare significantly better in corporate governance rankings than those who fall below this threshold, and this could be a good proxy for national governance, he added.

According to the Singapore Governance and Transparency Index published by the centre, locally listed companies that meet the threshold have an average score of 66.5, compared to 47.3 for other listed companies.

Agreeing, Associate Professor Joanne Tay from SIM University’s School of Business noted that the business environment today is subject to diverse risks from the political, social and technology spheres.

“So, the chief executive needs to be sufficiently aware and responsive to all these big-picture challenges, and be able to articulate a clear vision, mission and shared values to (various stakeholders) ... That seems the appropriate experience for the role of President,” she said.

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