SINGAPORE — It was an error of judgment: That is what Professor Low Teck Seng — who was named last week by Singapore Post as chairman-designate — said yesterday, as it emerged that he had decided not to take up the appointment after all.

The surprising U-turn announced by SingPost has raised questions by some over the company’s future, as it continues its hunt for a chairman and new CEO, sending its share price tumbling as much as 4 per cent yesterday.

In a unanimous decision by SingPost’s board announced last Friday, board member Prof Low had been appointed to replace Mr Lim Ho Kee, who will be stepping down as chairman on May 10 after 13 years in the role. But in an unexpected announcement yesterday morning, the national postman said Prof Low had reconsidered his decision to accept the appointment as the position would demand more time and focus than he would be able to give.

“I would say it was an error of judgment,” Prof Low told TODAY in a phone interview. “The board in the deliberation (following Mr Lim’s intention to step down) felt we should get somebody ready to step into his shoes, even as we looked for a longer-term solution. They all nominated me and looking at the interest of SingPost, I accepted it … Upon reflection, looking at the demands and noting my responsibilities at NRF (National Research Foundation), the job is too big for a person who has the responsibilities I have … Reflecting on what I now have on my plate, it was not possible for me to take on the two responsibilities.”

Prof Low is the CEO of the NRF, a department within the Prime Minister’s Office whose mission is to set the national direction for research and development (R&D). The Singapore Government is committed to building up research and innovation to grow the economy and, in January, set aside S$19 billion under the Research Innovation Enterprise 2020 Plan to take the country to the next stage of development.

“Since the announcement, I have had time to reflect on my dual responsibilities as the new chairman of SingPost alongside my principal commitment as CEO of the National Research Foundation,” said Prof Low in the SingPost statement.

“As SingPost is at a critical and pivotal phase of its transformation and growth, the chairman’s position would demand more time and focus than I would be able to give.”

Prof Low told TODAY he told SingPost of his consideration on Tuesday and officially made it known on Wednesday he would decline the role. He said members of the board were aware he had a full-time job. “In hindsight I should have said that I wanted to consider,” he said.

SingPost shares fell as much as 4 per cent yesterday to S$1.56 before closing 3.4 per cent lower at S$1.57, while the benchmark Straits Times Index ended 0.1 per cent higher.

In response to questions from TODAY, Mr David Gerald, president and CEO of Securities Investors Association (Singapore), an advocate for investor rights, said that the latest development raises questions about the selection process at SingPost.

“It does pose questions in the minds of shareholders as to why the chairman-designate, who had only accepted the position just recently, should resign giving reasons he must have known at the time of his appointment ... One should assume that the board has done its due diligence and that the appointment was a well-thought-out one. The questions that would be in the mind of every shareholder, would be, ‘What is the selection process?’ and ‘Was it sufficient to select a suitable chairman?’,” said Mr Gerald.

Corporate governance expert Mak Yuen Teen, who is an associate professor at the National University of Singapore Business School, and also an investor in SingPost, said the U-turn does not give a “good impression” of how SingPost managed the selection.

“I think they could have handled it much better,” Assoc Prof Mak told TODAY, adding that it would have been better if SingPost had appointed an interim chairman instead of naming Prof Low as chairman-designate.

Referring to the reasons Prof Low gave, Assoc Prof Mak said: “This is something that should have been considered before the decision was made. Having said that, while making the decision and turning back is not a good thing, if he is not the right person or the fit is not at the right time, then pulling back is a good thing instead of persisting with the mistake.”

SingPost said it has begun the search for a new chairman, both internally and externally, and expects to make the announcement before Mr Lim steps down on May 10, when the company’s full-year results are scheduled to be released.

Meanwhile, the search for a Group Chief Executive Officer — following Dr Wolfgang Baier’s resignation last December — is progressing well, and a number of potential candidates have been identified, said SingPost.

Dr Baier’s resignation had taken the market by surprise as he had, just months earlier, won the best CEO award at the Singapore Corporate Awards for companies with S$1 billion and above in market capitalisation and was touted as the force behind SingPost’s evolution into a regional e-commerce and logistics leader.